NOVA - Earnings call transcript Q1 2021 | Sunnova Energy International Inc.

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Operator

Good morning and welcome to Sunnova’s First Quarter 2021 Earnings Conference Call. Today's call is being recorded and we have allocated an hour for prepared remarks and question-and-answer. At this time, I would like to turn the conference over to Rodney McMahan, Vice President, Investor Relations at Sunnova. Thank you. Please go ahead.

Rodney McMahan

good and, operator you, morning everyone. Thank released slide presentation we website will this our portion earnings a posted which call. during referenced and release be to our press of Yesterday the Relations Investor

Berger, John Lane, Robert President are today Vice me Sunnova’s and Officer Executive Officer. Chief Financial Chief Chairman and and Executive Joining

other XXXX. constitute about remind Securities the and within not forth meaning undertake uncertainties, press expectations, the Exchange Private Before me such releases this plans by Such could may statements” implied everyone such do we to results and statements. begin, the update remarks forward-looking Commission. statements. contain and to statements “forward-looking Such We filings in differ call our with Reform These Act beliefs, other actual estimates, are Securities set of Litigation that risks, future materially factors risks a and any those are or that let certain include from statements that to indicated prospects. and duty cause of factors variety of subject

turn a considered believe isolation call, additional Additionally, we measures, information A call which for of can most now non-GAAP evaluating be comparable release. over results not be The earnings reconciliation GAAP to useful discuss in should be found non-GAAP today's we our with prepared as this will or performance. during substitute the can presentation in in measures accordance will GAAP. I measure these John. of to the in our

William J. Berger

customer SunStreet an quick see our to on than market. thank its thanks our the exciting acquisition, year guidance. strong ability dealer where is increased will is the to start penetration On off morning and and of to our faster Thank well-positioned XXXX our Sunnova full-year reaffirmed grow Slide continued continued both expand details rates, attachment which we you, the an battery results, of strong grew Rodney. you you for results base, our overall for and X, includes and operational us. the joining XXXX to Good ahead, QX network. excellent closing delivering

we've X. outdated the XXXX. remains Our April power SunStreet contributions closed out ineffective resilient as to frustrated which see more storage, on any combat seek and grids. to and demand continue This customer acquisition we from as healthy, energy X,XXX quarter growth On first the customers is of strong added before solutions homeowners reliable in

second during resulting discussed the supply earnings call, demand inventory As in industry this constraint last half outpaced XXXX Systems. Storage our Energy available an wide of in in

an to storage strong continue we QX this in on in began our in constraints QX in rate reliability and origination of increasing focus on base. full our on customer battery in to customer penetration subside increase resulting to rate QX With attachment these XXXX. XX% However, XXXX XX% an resiliency, see from

sits XX.X% it just XX, now rate year ago. March one than at as of stood penetration XXXX more Our double where

is fueled We expected further could expect end of of Network, be This of exceptional and this over on by coming and customer or end dealers grow reach our Sunnova the X,XXX we at mid-to-upper our by XXX high near by base roughly dedicated it the quarters growth year the the rate the to further even attractiveness Driven by sub-dealers. in anticipate XXXX. count to dealer the the of as even as and an teens XXX,XXX. see rise

this life and on have cash customer on flows. added contract information we expected Finally, Slide

or base to at inflows of we XX, life while million, expect the XXX,XXX, $XXX March of XXXX, customer. existing receive on XX.X contract customer next remaining average As only XX equaled stands months, our the into per cash over the taking contracts our account years $X,XXX weighted customer

adjusted exceeded first that actual EBITDA report target, quarter. the to earnings am I QX from call as capture summary pleased results. approximately loans we XXXX On to we principal Slide of expected of our our and all XX% a that goal. XXXX ahead QX and noted our solar provide XXXX to in XXXX of both interest Turning X, QX financial that results were full-year we we

our flow results negative cash due of the as quarter expenses well business of the to our seasonality expected, QX. the As were for impact annual cash large as to typical exclusive

operating the should results on growth anticipate be from receive We provide guidance continue the we full-year principal our On large positive balance to past flow, summary XXXX. break-even estimate and solar full-year of for years, EBITDA X, midpoint maintain our recurring Slide to investors as we XXXX for year. operating few year-over-year for adjusted a loans expect the on the adjusted in these interest and cash a as well of including cash flow so our

As green or from discount value, see increases increased XXXX, on March year-over-year. now $XX.XX $X.X X%, approximately GCCV, is a from rate March to customer what and gross period. together of XXXX. you these significant experienced key our increase $X.X with adjusted conservative as of time metrics NCCV, a recurring in coming XX, NCCV at customer the have the to March level, non-amortizing between can loan both growth, XX, into and and you billion XXXX. On in are XXXX experiencing flow rapid solar our directly to will increase net years. Using see, the growth X, contracted bond expected Slide March or XXXX translate to significant XX% value, over contracted share on financial per XX, anticipated increase seven EBITDA issuance This times equates which same XX, XXXX we double in cash a with a is This of roughly significant billion should the operating P&I corporate

per trending We NCCV per see customer services and customer to continue higher.

straight the per While NCCV calculation upsells. renewals, any growth, or value excludes relatively is share forward, it for

view is our any common calculate these valuation as are with we and below used that We this the floor interest cash metric rate almost entirely to for NCCV. Given below that shares. lower, presently whose flows discount reasonable continue rate debt, financed a sits X% to well

our to to the encourage we forward a such, methodologies metrics utilize principal such As a receive and consider as other estimate that valuation those we on interest EBITDA investors and adjusted multiple loans. attaching solar cash of flow or consider

performance metrics, these in do once years. our solar ESG its coming EBITDA Although vary meter growth report, than intensity to trend material themes. to growth ESG we P&I grow several at years. inaugural customer growth spend Earlier Sunnova the adjusted and our growth from metrics the company's abates when expect replacement in and transactions, published growth investment should especially above due detailing in rate items, and quarter-to-quarter ends NCCV, this month, customer and loans viewed financing higher one-time over these the of The growth or on strategy the

frameworks, leading with and As noted this X, Standards the Slide Sustainable Development Nations Board including is Accounting Sustainability report the on Goals. United aligned ESG

have I that deliver service As firmly a difference Sunnova world. for make at by a at we and price, better a better to the imperative that do customers, a the I have intend in place positive energy the I said have better leading moral future to just to world believe lives and from and to Sunnova, with we X.X a founded community, the COX future. generations tons beginning, make our energy of Since systems energy and inception in pollution, of feel clean Sunnova they but systems X.X and million did only kWh that through also address our customers reliable avoid of billion of to change a they more about. climate and Not resulting cleaner affordable our generated help the XXXX, good end sustainable provide avoided. power can metric

not environmentally a sustainable fundamentally that more focus to believe is believe in core good communities on rest also we strengths we also paradigm, than making important environmental a the business difference to our where alone, on we is being positive and our citizen While energy old operate. the corporate but it

to and and the and in support good paying proud are both jobs its We States territories. high-quality United across Houston

have we In power such of Rico. addition to in this and by Maria support In provider Sunnova largest after island. storage communities to aftermath, need. times our as to was need, we supporting service there batteries also Puerto the supported remain service panels nonprofits by green on struck Hurricane the families and recovery in and the donating solar residential efforts jobs, far To day,

way conducting communicate our through our over right culture. time. greater values ESG committed to as and long-term underpin corporate We continuing first practices report our our also continue synergy, our corporate detail. I our performance. the are you your core call sustainability feedback the of to in our We progress welcome forward service, strong turn look strategies our Rob on and guidance will results, recent to governance We upholding activities, our as and financial walk we to for now over and work to business ESG on will financing enhance

Robert L. Lane

Thank you, John.

first our you have Turning see will the quarter over few we X, in years. past the gained results momentum to Slide

XXXX up period loans received EBITDA while XX% instance, the on over interest and revenues XXXX and QX QX XX% For the increased are same XXX%, by respectively. adjusted principal from solar and

As cash QX generates slide. on negative can adjusted which and John operating noted this flows recurring historically earlier, see reflected you

first the up and The Slide achieved financing completed included tax just February funds. of $XXX $XX warehouse solar closed of restructuring average trend a year-over-year X%. that our activity activity. equity securitization was year our the gain and new to a right the in sized XX loan include Other and weighted loan remains million summarizes to financing However, we leverage. as date $XXX in operating million transactions at yield XXXX recent over blended million financing of

tax million in of We expect approximately $XXX additional we of that future. the have equity commitments near close to

to months strong cash company the help issuance sheet. to EBITDA continue we P&I cash operating remain few and growth near-term properly to of corporate bond which the To within green will flow flow. the next a work the the on finance focused should We our this goal adjusted turn facilitate of into with increasing recurring strong lenders with balance

at working company's of of by the timing below robust cash since all-time our $XXX.X color million change to by primarily XXXX made milestones, a fund-specific rate this primarily in usage around our of Slide fueled $XXX.X last under-borrowing that March of relative high was and summary, cash million the XX total XXXX driven securitized was high EPC This quarter-end growth facilitate we XXXX. pay-downs, In of up million, of provide quarter. equity as unit tax outflows of at growth. of the XX, XX% XX, $XX warehouse level the overall high of reflects previously spend to but approximately intentional On million on cash March decline our December up contributions seasonality debt end Our over XX, capital the $XXX.X our for balance construction flows economics. in year as discussed, total from our additional facilities, cash

trailing a see, of on as on X.X% cost similarly QX unlevered fully will average twelve you of trailing X.X% was while X.X% at above resulted spread our a burdened months, March weighted debt spread was of a months return XXXX, of As the X.X%. XXXX, twelve XX, as year calculated XXXX. full This for origination in new implied based

our we value our As both as a company, the technology-enabled driver and engine. we focus long-term customers, service which serves relationships flow have on with cash

margins from and financing our we Looking achieved that, across of offerings. at XX% other our we and all remaining our approximately service XX% service overhead, contracts estimate the contracts, spread services allocated approximately of from our all service net net

We for on We number grows a continue contributions the financing customer seen and as percentage our towards the that from XX% trend of more foreseeable a services this have expands, the from non-financing revenues. margin Sunnova's contracts a gross generated split expect future. we lower move achieve and service we to estimate of of

average unit currently true unlevered leases away the mix, is such or This contract and size, of we can mix, fluctuate system as seeing burdened quarter-to-quarter even any regardless from expect loans. to we more regional to improving While see fully to to are returns. PPAs economics changes shift continue

that contract no numerous Protect, contract are all we of on comes customer As finance as agnostic matter benefit solution. a and the are noted from Sunnova we chooses, thus type a just a contract or service add are type with loan PPA. what happy have occasions, customers comprehensive peace-of-mind to Sunnova's customer Furthermore, as a under lease we

are target XX, greater from will when earnings any launch will which or year. of also were generation, unchanged raised similar on to remain our On become last vehicle our ranges end see expected guidance we and available, such this service slide the they which as Additionally, new offerings call. you in returns by electric that chargers secondary

highly to be results. confident to expected hit to the thanks ability our model and We predictability continue in targets inherent our in stronger our business first XXXX than quarter

are already same XXXX our approximately and day. mid-point loans solar of As existing through that of March as contracted XXXX, of XX, of targeted the XX% P&I revenue customers

SunStreet we and very in added As at to the QX we through home XXXX X,XXX thus beginning new of customers business. continue our anticipate forecasted, the acquisition closed

million and integration March the to XXXX of XXXX that XX% and have XX%. the happy On over to our that as XXXX interest expect will loans Additionally, of midpoints and the earnings SunStreet. EBITDA $XX update forecast XX, recent now our spend of we solar last most in report increase estimated principal will years costs on approximately the our guidance. after closer two transaction $X next anticipated be to by we spent adjusted we associated estimate our million increase in call to receive we compared I'm this with we

our were although our growth. in on increasingly growth maintaining customer for increase constructive year-over-year we We levels, over XX% of XXXX more are XXXX XXXX our becoming also

costs we quarter and coming Finally, of we to in the basis system in a continue which bringing on our expect focused XXXX do the per quarters. down first remain did so to on

system As back XXXX over of $XX.X will in turn reduction expense such, adjusted replacement to in XXXX to John. with call meter per and operating between in even million a I XXXX XXXX. $X XX% costs the expect we now continue and million

William J. Berger

wireless a building Thanks, the centralized and our as power money Storage on integrated, that focused move delivered dominated a we number To as demand make and industry solution towards. the to invest This Until has enable a free for that power for to homeowners Sunnova a compared our industry recently as wireless the worry resilient as an it which years to, of to the by technology a have and Rob. power that logistical, been possible industry and consumers. services service has software capabilities continuing and reliable solution is was more been, be monopoly sale. efficient undertaking. only operational increasing customers is service beginning power and to solar sale is is saving a consumer and to pivot whole with significant technological, in multiple primarily rates. towards catalyzed to serve

companies, amount with the platform closely installers increasing and in equipment to services are Sunnova, as deliver of and and best and addition, In scalability to and world these an the originators such partnering services to innovators integrated providing technology create providers homeowners.

that Network. together We and to an have we interconnected Sunnova call woven capabilities the create software platform these service

the Sunnova, and to our of we enable but As scale, we obtain an our to of combination increasing key Network's with of equipment and most partners. centralized for building for amount tremendous that additional including cohesion our dealers, capabilities services services, our customers. certain software and customers, utilize can aggregation bigger and the better is It against dealers three value moats equipment aggregation partners, this Sunnova these value components and are creates software, create only not also and along dealer partners importantly equipment competitors, increasingly its utilities. - existing

will produce right on tipping also and of investment our Since strategy what come. the that focused founding patience point Sunnova. unique we with greater flows is doing over to major the shareholders long-term, for Our questions. cash was line With open have the and has a operator, capitalization reached advantages years that please off paying and competitive greater for significant that, now to flow cash

Operator

Thank you. Instructions]. [Operator

[ph] question with Your is Sashi first Simmons Energy. Sarason from

Unidentified Analyst

my taking question. to you Good the thank morning, and for start Great year all.

potential of they're your storage gives given I'll is So your meeting any numbers few on your to shortages amount that you and of provide your throughout context us one. the due just hit start big from some great? bottlenecks. the all maybe Can be supply hearing the you're the year, would or issues for have rest demand the surrounding backlog all suppliers, you can you inverters this indicated with and to days help the weighed going Enphase A around that ago, what inventory anything the on at context confidence chain, you sector, chip XXXX just what major have systems

William J. Berger

you Certainly, thank the question. for

want problems, out in chain to supply July I point that year system one’s first foremost, specifically signal that was and of were and to energy way storage back the we last area. there First in the

others said on bit, late up February, took storage energy freeing months to it that on those a in last for that think constraints I earnings our we we that recognize specifically system. several saw call

tightness of end supply the you be if of recall, one maybe will, providers. and the specifically of a marketplace, thought year at fairly we a did little express quite the quite Safe systems also through what would stockpiled if and did there in However, you inventory inverter bit. we that quarter -- inverters. that have energy a of is year, have of last we bit significant might we of a stockpile we We that, a two players, storage rather, and or I and Harbor first those. the we there those, say And did lot we bit have

We purchased something again, anticipating issue, in of going also, more anticipation wrong. inverters and this further

few think recently bit at appears is wrong, a with supplier, we're anything As ago, regard. that didn't would there go as covered one I and pretty least weeks least of difficulty in a that at it

the So will some this quite as opportunity Biden's to nation last my purchasing we that in else indeed, get sure Ford large months. some competitors have President extension, coming but XX% that ITC as inventory as point plenty. down the a listening to we confident, very of couple drop would extended at power, -- need well an yet we especially address to of and I around our the because a get also here do other we're night, look anything at I'm And have

been and up of call earnings back market beginning you anticipation loosening I do QX. terms of seeing are various of we're quite to thought ramping their aggressively. partners and such There'll very delivery and in customers. seeing time of I of to the has system pleased quite which storage system, the our see partner country. QX, as and be recent information in -- with our four a one loosen Badri storage see firms, loosening of those we quite sold place see a energy of happening bit ours, couple am to end the again, the previously weeks competent a QX that of the also the of would Generac a that three indeed, is innovating the world, towards towards very that well we moving a any weeks. and on our in recall Enphase storage next have couple very around has note that, of done loosen this such around in earlier as that, well doesn't that months ago, particular so of locations But significantly, managed, with we if a problems possibly up this would new product in energy supply comment there the report to And that that problem, to already charge that addition system. In we our made and lot we is he

addition although depends earnings in that here cover product his the in we're as SolarEdge it well, anticipating Zvi can In weeks few call. to certainly out launch their to next that

the we in supply chain improving. situation actually see all So all,

of are we have prepared optimistic. adequately anything coming don't that and see what to And road the bumps would this than actually have more the Xwe We we quite do planned getting way be for the in in in quarters. we quite thought the

Robert L. Lane

inventory inverters the can on under filed inventory. And and note, our broken we quick XX-Q actually that we've out within just the and real have I that XX, cash, modules on this Page the ESS was morning if add

both. sorry, a that quite You that towards have And lot can am we is inverters I see of modules a modules and more weighted inverters. -- few still

other So John Safe those Harbor referenced. that's our in purchases had to addition that

Unidentified Analyst

then Thanks, of guys. around That was my it. California. question color, set excellent And appreciate is second

penetrate SunStreet surrounding pull And but are there. home to in that platform, metering, and then the that Just seeing using with an forward you further energy the associated uncertainty seeing builders demand new help could homes interest quite market? I'll you maybe curious if not it you're any also leave Thanks. related from

William J. Berger

you. Thank

we saying work Public to On the have this expected decision. Commission that, Maybe California the question. at that pull a commission, to maybe certainly to year. bit No, even for make to. end not California And year we're itself early out yet forward longer and time little Utility of take the next process probably, a expect again, very wouldn't

we our part of expect that an really much The been made so is energy Everybody industry, and energy of leaders leading and amount and country. good has and and now job paying clean energy California that will progress other which that, more world, the a really dominating California we into has the entire of move just of the is reliable recognize country obviously rapidly knows of that in excellent system. this the as jobs a done course, forward clean transform

And right so we way. the in process California see will NIM end the that

wouldn't And there'll anticipate something till later if much expect any. this don't that of we so see year, be that's I forward. demand to certainly pull part any But

XXXX the several already key take very, second, some the reasons had this think why on close long several very I and yes, then build we're Most had in big Yes, the we cycle XXXX these it's would into later times Didn't and growth. we've of constructive on homes year. to late. of one wins. of to wins get come given starting acquisition that On

certainly the And lot so expect platform. we see as SunStreet to more Sunnova integrate yes, it's we wins, the already making we're off and wins directly fully into and more paying a platform

Unidentified Analyst

the for details. Thanks

William J. Berger

Thank you.

Operator

Your next ROTH from is Capital. Shen with question Philip

Philip Shen

thanks questions. for my taking guys, Hey

to QX relates growth in in later. rates, As XXX% you're it just targeting, XXXX. year-over-year came about the

could a rates, you think you upside QX degree to which we at what rate growth see And XXXX to customer adding additions trend might the QX? you the share, expect and if you're in do So to I was given wondering dealers? how do

Robert L. Lane

rate the fell. off to real Just quick, cover

first about in call, customer to second I our quarter, customer think the of adds quarter we we expected of that still when I year-end that in much and fourth XX% about quarter, for the adds XX% very happen on first third track happen or we're guided the that. to done and the and we had think

Given came quarter given this where and the we in trajectory.

As that. where think were expecting actually cover opportunities John came much I'll very that actually But of and upside as, probably of the most consensus we ahead folks was. far I in let where

William J. Berger

Yeah, I would actually better more say that. maybe on waiting little trending a that XX:XX we're a towards

time. takes dealers, how that again, it make pulled get fast we install. seeing sell that train a rushing have up, lot can we put of lift, implemented, So further. whether is growth, and more shape. strong I'd pushing lot are see bunch more we're and And don't comment think don't the specifically third a it's opportunities want a XXXX these takes lot seeing technologies, of And Quite offered to as in good point additional say licensing, those in load as there's in nice in technology And just it how new pretty on to decent, managers, get pretty in products, huge up I I It We're we heady. quarter customer, seeing already our these to really equity this any and candidly, reflected our we're generators, out we I XXXX any services them charging, to of laid just call. our in growth simply those we're areas EV sure operational into to time. growth, a forward. of it's out per don't some a appropriate

very, And as so very looked we're again, we XXXX constructive. getting at

and So hopefully, about will and that's the will that to execute, continue I all investors growth rate. as appreciate say we growth

Philip Shen

those you Looks the My economics. nicely is the your unit Great. in you XX-month here a question think actually the even on Thanks, X.X% implied trailing for the spread the that But year in guys period there period, I second to from expand footnote able greater. were spread highlight QX in basis. is X.X% to around like color. economics ago in

you also anything terms fully expansion well, implied and wondering as QX and great? kind what on that unlevered was I you return about forward-looking about burdened be of talked talk then the think would the in Thanks. expanding so a might I if basis see So spread could you of ahead,

Robert L. Lane

Sure.

look points we you much it basis about if last And, certainly spread. see XXXX So that of was at XXX higher. year roughly our

are We seeing bit in surprise a strong. we that unlimited continue fairly dissipation a any of our that. And don't be returns and to see

lot also a then low other a We followed our record competitors of and achieved up.

hit think, so wasn't speak, later. XXXXs. a performance midst worst couple one it the wonder I just So I the would to add, market In early a of since weeks the bond

the So negative impact. did free impact, not have the certainly risk

is on so through of X% you and to speak. capital if that to closer increased took cost call handle so And have start you spread cost, it, towards it that burdened the higher, all way to seven and get you Xs, low X, a fully the XXX% that's something a with

on. best at Both financings and way securitizations I with look timing this is a of some trailing there's to the at this looked and XX-month. within have volatility I that to Rob what do so issuance of think said and

better so of I And that's think things. at looking way about a

to we're And able yeah, also quite we think move higher. to say, be either so that we more can coming standpoint returns conservative move these quarters. And and ahead stay the look a gives or higher that confident us in here

how very is a surprise those doing strong spreads to continue we're would say a well and that So, I to of on bit that be.

Philip Shen

Great, thanks.

Operator

with is Sachs. question Goldman from Lee next Brian Your

Brian Lee

in net know guys follow-up the the per But execution the about model. to I contracted spreads focused on Hey just guys, you I the and morning. customer. think here? right you represent disclose the do John, and rightfully of numbers good in they've talked for are so, time, deliberately, Was guys this that some where that. that value give you that's Thanks good here. business historically increasing are on maybe on Kudos I have questions. customer to value taking slides way sense you the trending it usually -- but have out of moved them said, in been see the the might way missed you I you call left that back. didn't how those could us have up,

William J. Berger

per I continues But don't of certainly have listed it We in the That being back don't the value the net still have we there, said, I run think customer and contracted of we very trend to on had the customers NCCV. be calculation the have strong. in think out the book. number numbers actually customer. we'd actually that we

service we going if bit. XX,XXX forward, be expect there's you take little what bring going stuff we're customer to that the customers denominator, batteries about to to opportunities in to typically per just we're Recall XX,XXX have which point, that changes in systems up going to a customers pick and to And them. attached the this actually have basis a going that have we and expect lot home on have a more that build some that happen systems, typically Now, there look that a into smaller at have for, SunStreet, that, that new going at to that to addition customers, for we're we're providing to with. don't

change customer well. as to metric going that's NCCV So per that

really number compare were time fact yeah, say, that for on But we only basis. did when reasons last when that do customers NCCV and across sense number and mentioned back then like. per took raise them with and really The fact what that was customer go preview same without SunStreet we concentrated how is a the doesn't to a the per to net on the can per share to you're come this was on we and trying at we Again, out. continue that in think taken we're isn't system systems NCCV system trying in compare as we I sizes, the raise forward to last time, that the that the equity we same had types the of geographies, make customer. to you're time storage value different and tax different it when you're systems trying look out

NCCV have again, the felt run Page for customer, that if we still sort can definitely archaic back. on an need you XX, But metric the per industry. you two the of So that was you numbers

Robert L. Lane

be that clear, still as that the previously, per of of Brian, getting And roughly, customer being XX,XXX And in think XX,XXX we services customer. is by of think, I in we out And the just laid to customer our XX,XXX per number seven. I I about roughly to south towards it's range see NCCV target. just range roughly per think, XXXX

the the same acquisition. with still that's So even

Brian Lee

bit are amount leases they from? I here, on actually a apologize, Okay, the a to was but of but and on around this than a I are bit follow-up metric you leveled know semantics, there. this unit those where that's down jumps mix quarter-on-quarter cost economics, I what seeing were those drove a additional the value rather is a off decent as creation and savings, net or the on cost speaking that coming dynamics, Maybe actually context system I great. kind per basis. also customer, some and appreciate

Robert L. Lane

rapid this Really we continue and few drivers we've just as scale as continue is going growth, we're looks what more cost out and getting to reduction the cost, grow Brian we cost the we a for have right business We the primary just is out laid scaling. we this that more to operating years, talked up, leverage like. and scale about grow that the to

out growth that am in down, expect way as comments. done forward about higher our over like slow in that's solar that now. operating mentioned items see see as I so that the should and you plus you'll such quarters to my think and trend see as went move before would opening continue etc. company experiencing higher. And than once again previously, our about And investment, we And our are I've high you leverage forward even growth as probably interest an that principal right should even needle I already and customer is a you've EBITDA we higher loans, from right that public. or looking get over you trend loans start in And abate growth. about forth, year few in There's numbers a and then were as in so we've a spending, into that up. made seen I of bigger one-time but replacements I these of much even bigger to the one-time talking pick a And more adjusted the comments, a lag see items bigger, of and the taking right, out embedded four you'll year we drop years the you at now. rate simplistic talked law years, time

big, and So we're increasing our operating quite with really certain moving of forward leverage.

Brian Lee

be we're Okay, of this on a telegraphing terms for that's side, you you're squeeze been maybe achieve around what of you kind last doing capital us there can QX, guys. taking of one and great. off versus sense cost the thinking now of what give of refinancing, one the the books? what have And you will and in sort more maybe you of Thanks, financing of if timing, there, refinancing bit and just I the timing, then you magnitude in guys specific think could can

Robert L. Lane

was definitely our that opportunity targeting securitization, pretty we've clear there's think there. I been earlier it that

cadence, in there we do cost that two of above take it's year. the a any you achieve of been tend can one time. We can of up our we two regular then over you well, year to And look If securitization a three about on get is extra the TPO to certainly above sort at market capital what more the first side, a accelerating securitizations, today. moving well, see

in not that very one on still expect but thing with, by I this compression ones than remains to the the immediately looking really think should there be earlier and that followed you market certainly continues in is spread. happy that. you're our mid-summer, saw that if the here only securitization, -- at The that that, we're with and you still see something to strong not

And [ph] that of rates we're overall happy of delinquency on fantastic. and to class with loans even little that this level asset So market. false high still service level this of of b) revolve by only this providing, is just being we're interest being the a) rate the providing a bit that's and recognized and resilience ones overall the the has just achieve really to a especially, other more those really that are service loads market customer the is them, paying keeping rates the able any than about in recognition that of having because

Brian Lee

appreciate Thanks it. guys,

William J. Berger

premium is we place the and that, that hedges seems to I'll call, Brian, once the real add it's turn or here a hedges out XX just in move we as see do quickly that, points us out to them basis upset saying laid it's debt, they're that Well, other have then And what means was when money difficult the spread, because to last very free if last spread, that you plummeting, probably the right. was expands money. compress. that It this will piece to wouldn't the whatever. the And and XX those curious we've on collect that look to the Rob is that like up this because year, least risk comment. risk to break actually is year, it And was risk that bit previous free get time spread in in of on why at build in

yield risk in absolute so in as we moves that are and expect this premium the see because you investors. February, the compress, market most you're seeing, continue, ABS what free risk up as investors to saw And you and again would the

you what That's make so that saying premium and how we compressing. continue that's having is risk that. is, is Rob and that money what to means see And

the And are last problem up I've it's the to free much done a if laid is in the upset of more up as actually few here bit to actually benefit over and we a little bit months. Rob a it the So and see little us. not as bit risk a way, out, that's move moves it least not even

Operator

callow with Baird. question from Kallo Dan with next Your is Ben

Benjamin Kallo

morning. Hey guys, good

William J. Berger

Good morning.

Benjamin Kallo

a questions. So few

us of what's dealer there? the kind keep there first then a and relationships That's percentage maybe, the remind big to question. you pickup network, And just up? Your for exclusive was driving just of first there John, can guys you us just dealers remind

Robert L. Lane

certainly. Yeah,

I we many track have. think I we've of honestly lost how have exclusive relationships

is not the up But And continue in a where for of the between I that -- each the escalate a we're network. But just provider not documents platforms is to the a the for makes just for go providers And, with it of those platform. and you, or is realistic. terms part if number I've and of industry practical slightly them see this We think different service idea and requirements it dealer. service very reality transactions those depending trending signing right lot. upon about our talked it’s home towards. about requests quite large other the sense. Look, in this them have years, is marry of of are of -- they is moving

more we've and understand XX XX Slides sales we unique helps this and been As integrated about. the really out what becomes solution technology investors industry as don't it to of an talking laid see and on And again, specific we're more us I hopefully, necessarily.

probably set to would competitors very dealers. But of software requirements this it's and of way. the see these more much in as up Our themselves and the services driving same

it's So this to the to simple becoming solution and complex a more as more you dealers. more customer, and becomes want with stickier offer and the stickier

not everything invested our Well, with think it's compete folks we're to but that. clear, my we folks, it's or I anything have pretty know dealers, I have successful they be charisma us? and Now, come that aside from else going mean, me why to to not did them they dedicated. my in we're

We have to others paid to get done best is turned ability more we the widest This and that and them well in in best properly. partners well, with sure company, you the it of of look firm provide the And value see equity the technology, very capitalization a a as we to equipment big that bond, going whether the if partnerships. cash going steps very, long software over of start partnerships marry more that going the And, be the mind, and peace get helpful. go of out they being we again, of launch origination the the dealers lot our and dealers. few and the are you the the huge tools term. across software towards continuing in they're in strategy mind a to up side they're terms equipment next will, have issuing to we when green weeks play part our that I in very to it's way commissioning we're into paid about the starts The close making of months, capabilities the number and them peace we of that all gives that have, over to also to flowing gives and at big

obviously, to a set of I our services all things, on each huge our in And side go dealers. and storage very So continue is of these, I'll to lot provide time, as this value huge network to a value dealers. to of take we the think don't this especially through ways, aggregation there, unique many is goes us. Each to these that and the of

the our on is growth. Now first on sitting of year. and trend number very dealer of driving software we XXX large capabilities. we very hard, next end got competitive And wise, of amount to comfortable feel and this this, I services doubling very where very, whether of it a continue lot a push feel continue time, to a to very aggregation and look, you're the to we're large given our innovate we see of But very, it's saying good by continue work for right, and about

rate. I growth think a that it's to towards growth our astounding point and goes pointing about

Benjamin Kallo

maybe bit third all my can if the your within at That's My that's that of about guidance a bond though, green just in on talk your then just on green second that bond? question. you question, included little any metrics

Robert L. Lane

of for, still very be a that metrics, cash want something to flow. I that for But don't market But retaining the the only still we're to it. What cash focus be do we to would the and do we prepared haven't position far to ones ahead about would RCF. operating it. But that flows, would something It do. anything really to especially We that the of too we that is deliver by is much want area that part talked that And out go I to get other much that the in is accretive to able don't is want of think it be we point primary of in that really part remains would accretive skis it recurring to get And to say mine. I nature. ahead do be to big our out too here. the intend very my of

to to again, want we're get So still ahead, work don't of very it's focus but out trying what much on. a

Benjamin Kallo

ahead third my question getting was about So of skis. your

guys, time, us we also anyone follow better visibility that numbers for reckless. guess you for Sunnova long of a So throw it's But, your it out than all else got. look [indiscernible] can at I as

of gives So, you visibility those high start a there, I guess numbers? why kind maybe confidence from that do you you -- just forward give just do level what XXXX that, throwing to out

Robert L. Lane

Yeah, thank you.

of the interest end XXst, flow the our of adjusted EBITDA customer and locked for from metrics, now metrics March and where our loans right the of cash all, had in year. cash flows in XX% at think plus I First our we financial principal

quite conservative And growth, done high do board, the have equation amount But visibility so that it manage with in be our say certainly just capitalization of rate the carefully. I we of very side metrics with a this of look, expense mail to can we because in huge it, wouldn't the we've the strategy. and of across got financial we

lot a it. And that, more with so, when have you it to do but gain on sale, nothing wrong does volatility

and we've And is look that, them. were you time, And has the our go way company start financial back look XXXX, that investors stability forward at investors that of hope at goes with. and exceeded again, time to will So, I would up. of the company appreciate before these that early in and is conservative go you out appreciate late nature to look you're IPO, set to stability again, metrics, that to the all the the XXXX the been I the set point up and if And belief conservatism metrics, that. over

install, lead rest our and vary more the which quarters early in is they it very more, doing I that, as stage can will fine. far but certainty. And it volatility as But we're As think, vary, equipment go much not or when again, in to ahead, does service. customer that counting industry, of the the is

of have lot next have what this quarter, right a it and quarter so for in And hand. we is even certainly we're already forward, we and now, looking

some create And us capabilities technologies, have and but so loans as then products, stability, lease and new far not having ability that and only integrate other very and with earlier, be have our we like and those something relationships stickiness creating with kind exclusivity our it's and continue more, to And software out building those to there. And the giving look more PPA, plans has in do it's predictability. a to factor of lot dealers that innovative a exclusive products able having that stability again, I we dealers said and been with new and of want -- good more to us. as with lot dealers arrangements a at,

ourselves taking up set in the setting the short-term, investors. that just pain we it's can to give long-term, in its a focusing way So up making we're on predictability and and more the sure

Benjamin Kallo

the would for that just Hey, calling we was reckless? I saying was think guys I record, that reckless, you wasn't

Robert L. Lane

the how we sure absolutely this the management over on is Yeah, appreciate me that end. easy. the This been you set And tell constantly that not we conservative is of I company Ben team to what's make strategy, not this going make up. the believe I and term I rest have we've sure And looking off. at but I and long-term, the and do doing pay we right the and conservative to that being that. of of are painful on appreciate want I can easy. been something But and front great no, that's a it's that just on Board long is look I focus pushing,

Benjamin Kallo

Thanks John and Rob.

Operator

is Julien Securities. question next from America Bank Your of Dumoulin-Smith with

Julien Dumoulin-Smith

double the expectations can XXXX, clearly growth off conversation dealer should the that about year-end of if XXXX morning customer customer team. good continued Hey, here, pick Maybe to implications mean are incremental up just that by on XXXX last does cautious pretty have too into right? know XXXX implications you XXXX said implication dealer I given the annualizing I on but by addition compounding much sizable target were growth, of growth year-end you what give

Robert L. Lane

of more crazy that knock And from folks, got have that's so on take generators, that yeah, existing now into all have more a understand forecasting really then point. we and like to the probably this knock customers a running we you've see do to running flat you beyond at, in and this customers. were at But company XXXX going me got particularly to what implications, reckless on want I a would of thought yes, have is both want Well, look per customer project, up margin, upselling Ben’s to micro growth. get look, into impact huge obviously should this, don't do to and to I is new comment you and as you service And the like, XXXX, evaluation customer opportunities. EV just fast And on gives managers, want load I to lift. analysis that positive making it amount for enormous We're we just of operational right. the a definitely at to this but services Grid chargers, inbounds running, is upsell and is you of out becoming that we out, grids, products, growth. coming positive while. getting going look our simply fast that's and that new opportunities more something stuff important as door services, get base, also existing impact got on would add, is revenue And just enough do cannot I all in launching

-- seeing the again on and lot to more a in we're year, last laid call per the then So customer growth. but old we both on the we're basis, grow out growing QX new opportunities and and it overall customer

Julien Dumoulin-Smith

from and I the talk Got mid and to a that how storage, you shifting here, if does considering side your teens more mix [ph] about providing little supply perhaps, can parties, and question bit year-end attach on it. supply then pivot and overall more, third If to you the reconcile and commentary penetration away this Kaso’s rates inventory powerwalls about elaborate to upper targets importantly can especially the ability just will? overall against back

Robert L. Lane

as not something Yeah, say knowledge very and that and relationship would that they think like I is it's they I good, the recent, there we're good value will to very it we not value think our that sell well. I to that Tesla ourselves. with aware partners

of continue we units relationship value delivery and take the And delivery so of there. units. expect And again to

do have good what is know lot question, SolarEdge on good partner. price do of And a new there so market they're faster or and his we laid the there. just, mostly company, But to a it job. run a and couple that that first innovate was we their great going that on I lot it. going answering commentary a the that going batteries. get phases that's Mr. where exactly roadmap things point to than we're well everything's ESS think is, a they're people to and partners applaud that's go, in we're think. have doing service rate I ESS to Generac get and which Musk without think of think the I is I him it's doing penetration the very the unbelievable, have of think And, selling that come a to out side, part coming has And to to business the made product declines into not in they're I to continuing in I products on going in of see I on and years phenomenal is, think out going up think more some we product, really need lot

there. we lot business out lot system a convert do So would And energy right there's what's climate just a lot and we But there's going to there. there's emergency. I make Elon out think to over do, a great. think, to the agree, more -- have availability, having because lot And a period that's of a want be I

and We and partnerships to that products they're innovating bringing may products have are and plenty new a we quickly. a see major and humanitarian they different crisis resolve do lot there's those fairly of so

speak So ESS been. this overall, way we're to no in situation that we've company, months in three the coming not better to ever of six a in there's that, then terms on

Julien Dumoulin-Smith

With no firm year-end commitments?

Robert L. Lane

what commitments in No firm Julien? year

Julien Dumoulin-Smith

year? by penetration Total

Robert L. Lane

know get close about what Well, is slower in up certainly move this the consider is at that we'll about I as a will it about commentary talked and Well weeks last on mid uptake, the to which something wrong storage, that in tell yesterday upper it. rate teens. very bit new penetration rate smartly accretion of have exactly few the into of to we going home from out. we're as to moving possibly, to point a that XX.X% kind you don't will I'm and on to little our how storage from is maybe right that going But penetration, I including work XX% market, back the all XX%. math pushing push moving

gave give. that guidance would than part. think be good I I was anybody we're than a probably bit no, willing reckless think out shape in So that, do again, better on and to think anything I to I more And is the there my else

Julien Dumoulin-Smith

Thank good Impressive, you. alright, luck.

Operator

Your next Weinstein Suisse. Michael question from is with Credit

Michael Weinstein

there So quarter first that's fourth is the decline a lot about it's could if months, you I maybe could talk alone, -- return, there trailing quarter something what's of driving XX at my think you had questions a at talk of about the of if X.X%, reduction? IRR from you look but X.X%, about the X.X% little answered with burdened been fully you bit look a the

Robert L. Lane

others, the that be basis, a to mix, the mix could so over lot is. tax in Yeah, certain the be equity There's funds geographic be on a that really forth. it terms quarter-to-quarter of the of difference it could it different and could influence it structure products in

the I on So, that. one that would that give because what general at are think in the trend to up you this again X.X think the I time knows towards and who the Rob moves see XX the visibility coming at focus look months that tell X.X, I darn point again, back spread. and I of looking is that. I I'll say, proud and investors I'm just mean, of didn't overall but look best point you trailing XX But, again months is trailing possibly, and good pretty the in to gives

William J. Berger

it fund Yeah, boon go want I'm to to make to tax aha, and and particular if the basis to over or equity right loans more -- to releases we're say, that on a into at want we company or we have want ahead to going We a then do We what of out add number enough if we that's deployment number. and there. get overall down to up that actually the to insights or period time some go is don't can look state big of one point doing an in and that territory broad have that. it or really

Michael Weinstein

going mean forward, said bonds, terms sense. advantages the green Does less? have usage in that right, bonds. that -- equity with to is does that going mean be flows, the green you what I that think of your retaining earlier about Makes you tax cash something that ABS that And

William J. Berger

I'm look go equity market. we tax ABS could the to we to would still look thinking market, if the

structuring do And them. we firm know, the as with advantage ABS really within I think a some do that we where you of is that how again, some market. lot your there's

looking So we're optimizing continuing them with forward those to to working on really structures.

Michael Weinstein

predicting Got gear? the many you, to and is dealer there, how total are many sub about point there, how does next there, have University the what XXXX Sunnova dealer up what are at dealers in terms landscape, out market kick really addressable are of we year, dealers

William J. Berger

math this I others Home industry normal, and in I And if ways we telephony, folks think there's some so am satellite you Well that seeing to cable continuously growing whether just there, on. leave say seeing start and new they're it's etc. and and have and and still not television, just around that's and certainly names do cellular, XXXXs Security, go but and would we out number and the so several XXXX --

opportunity, time U. about we're the diligent So, very to Sunnova ample really going same getting with we at serious we're see and -- and do,

So we will knew growth want -- to create more, get in more we the we years. even lot to risk to need more outer

Michael Weinstein

XX, looking last On time. dip in cash a there's and steadily the it over quarter, latest One Slide grows assets, there at question.

look quarter, in basically you million cash, if at total mean, what's driving I inventory, construction progress wondering that including in sell that? XXX and the Just

William J. Berger

that of credit been did There's going a lot different held of released are one a we reserve. One, had things a our cash couple that there. of in facilities restructuring on of that

facilities, to one some do able end debt that some ball, in the get to of up we borrow close We we released. of didn't we significant our So tend had XXX% our were XXX%, there. which so facilities, at we reserves was credit lowered of to month

and debt. we The really in on ROCF paid and the you're first where back, final to than EPC. historically, little thing going more be lower the we if that started $XX look is that we in is to million going greater first quarter a be securitizations, quarter anyway quarter But going quarter. that is always And then in prior fall have prior securitization that when the And our more impact off quarter see fact, of is usually first some debt to you from ramping up worth a quarters.

and that's what or working the assets really, basis look point cash. are movements bit that and above at And really this final the the are is moving of exception number, up probably positive. a This to the opportunities. originating if little little moves worth is bit really -- reiterating, we with just that from I which on So we it's put only moving new breakeven, thing ended quarter-to-quarter. that cash that being a capital the we the continue it's big to were really around talking thing all in one, be it us just that's to up of ROCF just catch a of where and a going those at lot expect facilities we we into help a that to at we fully burdened uptick one keep really should say but be on biggest a those take down up of bit good is ramping about quarters because to able a cash little And

Michael Weinstein

you. Got you, thank

just anything it sounds in more of a else? like lumpiness than timing So lot

William J. Berger

Well, solar lumpiness lot Speakers] a in time. of welcome to [Multiple business, the

Michael Weinstein

And thanks.

my the very Sorry, days. excited in screaming, that background two-year-old was solar these there about

William J. Berger

take We're questions. his going to

Michael Weinstein

thanks a guys. Alright, lot

William J. Berger

Thank you.

Operator

Strouse from question Your J.P. is with Morgan. next Mark

Mark Strouse

Good Thank questions. much you taking very morning. our for

for people the the your being four expectations you or how be go should we of generators, comment EV quarters per the year. should back we -- in you about over three, what Can a offerings, EV to what think us future are and are cadence wanted how sales the of expecting hardware time and value new chargers installation period whether to kind two, and chargers are about available it Just about where is your for one, later ramping just of value expecting customer the kind think this clarify kicks fine tuning really you're later, there learning over there? then without, that the process, foreseeable

William J. Berger

that's throw in it. they that uptime. productize this. multiple I to and the pay many to And an then off, and pieces we're to how you want offering is bought What say, I those storage is in those of a And they and well from that want looking complex. these the I mean, thought come load manager at the want even to the and that for customers I beyond so of way service they realistic put just that don't that's I've there. would I a I in is it want it all question. back different worry then I in a times ask most this what they and And now all by say, want and past be as a said you and well. I say about friends manufacturers mean and now. EV generator I've think and don't charger come And, technologies of oh, had I want timeframe. I solar know bill together is the good run seeing way, XXXX it. across I've What to the tell That's most integration can't then

legal the developing and you that products launch language your got to their you multiple you're got -- forth. lease, you you're think a take software got a tenures all can on the whether then loan, to so got to so got you individual and the a so And about definitely the that you and to of take across platform those out, loans adhere licensing contracts, states, PPA, requirements, will long time, you forth, a got different doing

terms up years. for those our faster. of we build continue we're And capabilities launching doing there. even last and our years. to for for at of crazy the we've more in have and couple three opportunity a it there's we least IT continue the products lot see been doing personnel positions, even so So launch out newer But to to hiring quite been products, extensive And door like people. and more We're

off” will we're some leads sure I will. amount rust the about. moving, instead the the so these network time of talked But to And that the out really am the towards to that of trying to as get take appreciable XXXX dealer “knock all end we get is year, it it and of

factor going sometime but now, versus to haven't really we previous growth we and and of it's expectations able that beyond. plans our right so later to XXXX And late XXXX been starting XXXX my really hit into are hit year know this to in in kind

Mark Strouse

Okay, that's you. John, thank helpful very

Operator

with James. Mosenoff Raymond Harold is Your [ph] next question from

Unidentified Analyst

for Thanks taking the question.

times of interest just the point rates. a you tough number? X% to kind level, at several very touched what solar yield have XX-year Maybe broader it's high this point would getting I'll to leasing, rising ask X%, You've treasury, that landscape a for X%, already would the a get is be magic where what's on environment, of say

Robert L. Lane

long-term day, foolhardy is not whether all be adjust think issuing we we're or the we'll the and number, that's adjust our us can customer end lease corporate pricing, of are a road end financing expect a a at with here term And PPA debt as the then the just magic chooses going free a I think do. that loan, we to take but and it'd issuance. the accordingly our the to Yeah, would all to risk bond, down a through Sunnova, I the though as then those and securitizations, or pricing market, at arrangement the you we're

risk term competitor that that most in need. say because really right. too of would about their we and we a the movement your or free part utilities, the of the so worry one And of our our in don't cost debt locked cost debt, And I much we regard, inputs competitor in and for interest, that rather the is biggest

are go to again, drop for I going but I've for for rates up. to in interest tell that's this, quarter see as rates. now nothing costs go And there and XX and their reasons so hard business when included a up been I to zero. you, century I And see I will believe, reason to a at no of in and years, them power look power the

costs, and beat of on more pressure more to frankly, they easier and the as easier more so upward just to is price rates. and and that's getting And creating pile an on more beat

to at they're where the to And this spread in a has and way gets ESS our widening. as or continue equipment it, drop. you costs point namely actually if wider goes coming to want dropped wider especially so look that again, years this All the in batteries,

if I ability the free we've last even look So really risk had think, you to buy market, the demand the risk move the in free a even And mortgage homes. over certainly potentially the move months that -- and right. few refinancing at

it. going far a anything of north we move you like the our as XX the really no as the There that year despite is would pick what concerns think I real to least pretty up problem at rate X% put economic that out debt is broad cause even obligations is on to we're that capital adjust will cost doing low our damage. terming be here. so rates, And your be. will significant record would are and we would and simply of be But

quite feel we So about it. comfortable again, feel

Unidentified Analyst

for But in on Any application joint XX connection have fees solar speaking the the for households. or new utilities call regulator grid utilities, we the last of California days by those? to comment since so earnings

William J. Berger

the terms will that that income think clear. it's people low that backstop And serving of the really pretty credit other same have and take for cared about they and if certainly we as credit don't customers from subsidy they're rates, of the customers I may challenging have good California state. moderate they

We will take that. certainly

certainly at but the to if already happy leadership about. they some folks, to up We address we in in step will that's ways and are those California, that care what -- truly significantly

think their move. really it's to think to I And consumers it's leadership want the don't crush I and don't California. think anti-consumer going of move more very an economy and that anti-competitive for the bright is California spot really of again, to for stand, I the going at

Unidentified Analyst

much. very you Thank

Operator

Your Karp next from with question is Sophie KeyBanc.

Sophie Karp

been philosophical put morning. answered. questions you question. Hi, numbers about my of I guys you the you ask also for Most have taking wanted question, good Thank a to the out. just that

that? sense have part it to match provisions adjusted you out the close kind present it your curious adjust way, pretty sense out EBITDA loss to adjust is hinted of you your just on your loans that does them provision more your of have match does to your already if that maybe closely you to to that that of real EBITDA thoughts make of hear numbers it numbers figure, or out as taken and a bigger, as make grow So loss mix credit the taken as

William J. Berger

a credit mean, that your in in is the CECL I it's take originate years Sophie, trying XX as entire you losses to Yeah loan. one for as keep mind great question. the full slot soon

taking taken doing that better modeling for credit has been. to is our sort than expectations continue great well, you to actual this we where P&I. things and realizing we in been out being is -- was is our say loan out, it One our of the are of where solar to the credit that if and But team want a do collections we've that really

that's So give present every the picture. you to it adjusted on P&I that a cash quarter and realizing we're is actually why EBITDA we together full basis loan solar with

we're collecting gets So but there's and comes solar that is is actually collecting. a in it not where realized, we P&I. non-cash. default, CECL loan non-cash, it in delinquency, is If we're is what produce there. not This

So it's baked the show already a numbers on fully that we into basis. cash

Sophie Karp

Got very it, had. helpful. all Thank I That's you.

William J. Berger

comment that really surprising we is, delinquency on and of in good the numbers. see to Sophie. very Thanks did default One quarter, build amount last this

better, than trend that continues payoffs continue much we to higher expected. loan to So much trend

and credit last the on if things everybody So, team done a credit this year, where amazing. are very How collections just recalls and good mean I front we has team phenomenal time were job. well, our

Operator

from is question Capital next Tullis Securities. Richard with One Your

Richard Tullis

so do bit Two on on get the little Hey, that hopefully, aggressive comments guess it a solar large thanks. the looking you know this I the building utilities, do current solar in a relation it's moats at how competitive mainly the opening little you everyone. see more providers call utility landscape for the to were front, bit talked PPAs and the about like from but, Good view sounded initially. in they questions, your to you guess recently How quick landscape I morning comments U.S. one reported I point?

William J. Berger

it have to the the operated works, materially from be that the make best focused we're And traded sure different, mean obviously focus across on would -- of I system industry for are but your how I they as then is different. I've successful, power it I competitors. they it's that I choice, than that is the think have choice. this understand the and is control doesn’t part the country materially again, well this And country, of power Yeah, on room, can't the I consumers anybody, a better end they think the I've have utility system in totally business, which centralized a entire they if if think operated

certainly that I so think respect. we And will

competitive the competition provided as But it monopoly not on I to a company. in who to needs of of side and highly equation. terms them the think know side, be the the you're I referring respect

need with even landscape or some choices, provider. obviously, to it competitive I our year, And financial that's very, made that smaller. competitive just competition. quickly, enough. for we're smaller we've the offering in about not service that was think very something talking what acquisition nature look been It of is we a good something number think simply of years, very to to we consumers a get moving product a competitive last with at are SunStreet. you of Tesla the I SunPower, The people damaging continues got one mean, landscape, I country, that's increasingly, running out very doing, ourselves, need there, that's smaller certainly we obviously

And task, operational laid goes and scale that a that and I financial so I our And logistical the out is, think and the what leverage huge into complexity business and it's need, lift. is you going operating that's that you again very -- huge, daunting how that off, it's daunting no very task. think know, big that doesn't I I it be mean And a pulled it can't to a be matter but are. it

Richard Tullis

lastly, homes in that's and helpful. Yuri could February, to of compared being based winter Thank are generated just in business storm with you, Texas, located thoughts, many storm are be your from Texas over Sunnova next provide the in an how And the much the John, storage also say and additional prior following could XXX,XXX roughly that how the two years, area the just uplift? solar

William J. Berger

most presence states, homes think the Texas. have a [indiscernible] California other do some built I the focus and they in of but do in that area good

certainly don't generation dealers that so what as for we're right something creating but and ramping that breakout and the available to now, it's And the as far us I will know lead be is, up such.

In up continue terms seen of attachment we've to of on storage lot definitely Texas. a demand. a we rate see move And,

utilities, frequency went and I've increasing that in well the certainly is winter. and in of lot service, outages, the season, even house. mind, other my with through what there's been just easy a we the happened, Luckily, of was power The the that's and thing Texas, failures keep the known amount that fear got

Now hard. gets it

you've if problems. cooling looking more coast, be some here There's the hot or that's know there's or next year don't I problems we're us. coming. in be You've got year more season people it to out got and Houston solutions. for going storm coming season, going particularly they're sitting to the summer the and but on they're and this that will And know coming and here

Texas, I but nothing should rate in see upward what we you energy Texas get consumers call really people the constantly on better I reminded, So service. growth -- know of that get Sunnova in pressure and a Texas

Richard Tullis

John. you, Thank

Operator

is Your with from Sean next Evercore. question Morgan

Sean Morgan

John. Hi,

there are weigh So factors? how scale terms those [indiscernible] California, in or a geographies expanding economies territories incumbent strong is do mostly balance and of New QX, states Jersey of versus existing kind new in the what's an that there, and kind into maybe of of thought becoming you you adding of kind the process sort of new you and

William J. Berger

on So we days announcement Ohio have ago here. Carolina. others we North entering, deck a And an and made on few

on year was prospective to based going we're and existing So we is are focus areas. do pull to forward, expanding growth that just geographies from the demand some And preponderance dealers. our a on But this the of continue that.

right. as we only of to kind states There's However, the self-fulfilling in prophecy, union plus territories. states, that continue a add new the XX becomes

tariffs. adding the about If eventually all you just keep existing it'll them, be

look towards to have the international You market.

areas, most on existing continues right of focus our is the to be. So and now,

particular the of the us and of a the and think we're there United is part from States Southern interest seeing I dealer. and of the of middle United an ability the focus on area part States lot

that's lot state of more months. a firms I new in additions, our the as are And see well. Some think you'll if will where you coming

Sean Morgan

a you anomalous rate you thanks. next -- there there's the going of first forward? be follow-up run little kind is think But some items may of a I you're this can or bit couple quarter. costs backed maybe over quick acquisition is do that G&A do integrating have on, some a of Okay, [indiscernible] the when up SunStreet been that in was And just out quarters, a expect the that. quarter QX that And of that sort

William J. Berger

for with Yes, mean, I we're G&A additional the here had some that year. a going like Clearly, integration both as earned options. other just I talked quarter well the baked divesting had had on about quarter But numbers of that we little to phenomenon had first SunStreet deal having with with are are to of the the that the stock to here and in think CECL there, full And are bit one there of bigger non-cash. are things provision in a was ones that that some there. be we acquisition into few there that a had already Sophie bringing costs. in do

So into a treated financing that a backed being as a P&L. it's on of cash -- out of and the -- of ends didn't flow the up cost it Anyway, even statement, as financing a being lot flow more through financing. charge really the of

compensation of So know, you'll first you think, as when see I our the part that we we get stock. to quarter, of many receive as

stock first we compensation given as I anniversaries. here would the in when a that's on about think investing non-cash But going more quarter just just receive everyone forms opportunity. the flow it to other relative to of rather reach the is through P&L charge the

Sean Morgan

on that's Xst, we're stock, item? X.X quarter going of that'll at for be a While April to hit this that closing topic so the million SunStreet second

William J. Berger

Sean. Yes,

Sean Morgan

had, I Okay, all That's thanks. great.

Operator

turn no are there remarks. for would I closing back time John further to questions. like to this over Berger call any At the

William J. Berger

Tom focused you. obviously industry very as and thank high appreciative talking our and and greater of pace he's competitive next I let especially here and I quarter years and of often, over first few to come. him everything next days at Thank you. dedicated certainly over want the world each same given company him the an just the they together everybody next and I the industry. our at our he And everybody wanted Warner, to what bigger equipment the need Houston years accelerating changing and and to of the know vicious think just him across and even for to I years on am a second years. for going creating has competition flows. respectful But everything competitors life hat an all that forward degree better we're cash to employees, to too is our SunPower coming to is other. tipping part and I time, for in a most want quarters be look with best few energy that done. hearing us he's pause have industry that few is quarter call. something, come. great at we're in done to and of the We execution And for we and XX dealers, the Tom retire customers country, The say competitive, our on his XX at think delivering in this briefly our Sunnova, and moats for a And he's I wish is and and partners, his and Thank knows to of too respect we're is and everybody our to building

Operator

for conference today's concludes you This Thank call. participating.

You may disconnect. now

Sunnova Energy International (NOVA) 2 May 212021 Q1 Earnings call transcript