SPWR - Earnings call transcript Q1 2022

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Operator

Good afternoon. Welcome to SunPower Corporation’s First Quarter 2022 Earnings Call. At this time, all participants are in a listen-only mode. After the speakers' presentation, there will be a question-and-answer session. [Operator Instructions] I would now like to turn the conference over to Mr. of at President Corporation. Vice Weinstein, Investor SunPower Relations Mike Thank you, sir.

begin. may You

Mike Weinstein

Good Thank first like to quarter I welcome would earnings you. call. afternoon. conference everyone XXXX to our

Peter will On today, with of our first business will begin expectations Faricy, and update CEO announcements followed the provide the an of we XXXX. comments highlights, call quarter for who SunPower, remainder from by the

Sial, financial year. Manu comments, SunPower’s results guidance Peter’s then our CFO, Following review the and for will

call the website. will available a reminder, of As Relations our replay on today of Investor be the a later page

information statements. forward-looking During and today’s Form forward-looking appropriate XX-Q. call, today’s our statements during the in of non-GAAP we that for well presentation those are affect release, see that factors non-GAAP Please Also, today’s subject will reconciliations. the GAAP call. as we risks those appendix and Please be additional may our various metrics for reference presentation, the reports refer Harbor XX-K press to release certain slide our today’s make that these to today’s quarterly to on regarding described documents Safe of are earnings uncertainties press will as XXXX

of the Finally, like the SunPower. turn posted data of during detailing sheet we to metrics. over posted Faricy, to supplemental that, have website. PowerPoint page Relations a the will same location, I’d also we and In have additional enhance historical to Peter? of we slides Presentations With the CEO call a the that Events set on in call, reference call the Investor Peter

Peter Faricy

of our Day. the in to at opportunity everyone. afternoon good you It Analyst Mike Thanks, terrific was person get to month most last meet and

we but into using recall, our build renewable best we will SunPower are energy strategy, company. presented You the world's to five-pillar

have continue to how on our full of deliver plan execution to year XXXX first in the will we highlight now plan. working results we attention toward goals full that and Today, guidance. achieved is we the Our the quarter our

strong to customers Let's customer that from year-over-year also across customers. SunPower a in highlights continues the channels all strong seasonally of the new QX. and even be nearly Again We with the business to growth count to added pleased with that report and our I'm a And see X. from and customer discuss XXX% we demand year-over-year some this our strong. added sequentially QX the quarter, continued new new Importantly, we new have XX,XXX of dealers increase direct record growth backlog we XX XX% XX,XXX on set quarter, channel. slide very sales

We new also this in with multifamily customers XX,XXX quarter a set the record pipeline, another growing including over segment. homes

continues with Our bookings interest tax system turn XX% its toward make year-end. Financial X. to benefit by on achieving number way continues our booking rate customers to attach Sunbelt energy to a and from storage a SunPower goal customer slide XX% XX% rate Please SunPower attach recognized and rate of the a with progress in direct strong on stated quarter

provide launched New dealer develop have our the diversify expansion our to territorial program supply plan to new residential slide of Analyst this the to company only highest-performing a and chain we Solar the tandem X. XX polysilicon technology to Please agreement investments capital our Long and dealers. over QX, next see the in constraint. continue Solar number and in need our our numberX. high-efficiency, to accelerator modules in we important provide we solar desire is keep in This to will Many grow the move across as address the months. our discussions the continue program dealer new next we providing forefront XX of Please turn our Day, In is at by panels film industry. with to our to of further Island, City and As the dealer customers component SunPower interest an look thin announced product and updates. our turn to SunPower on growth program their York highest recently you our efficiency market This with grow with reached businesses with Empower in to network. few share We slide forward making First years, to dealers opportunities channel. we strong over the and to

Landsea will built include our a have effort. of for with agreements commitment Arizona, Florida partnerships to list is With and have growth the to seeking XX in Texas a place an well. now the and SunPower partner on growing plan. exclusive Landsea, continue and seeing All as to with number we to Please to of part new add work to top we environmental emphasize And proud a our system newest Landsea national its homebuilder more. rooftop five states homes solar system Increasingly, homebuilder X. outside ESG California buyers slide to in homebuilders be option by a U.S. industry focus of and we proud important we announce Our with solar, that the are Homes. agreement are will we are California in turn in in of and adding

made strategy. executing with our we of have the five against me share pillars the you Let progress some of

For QX. we already experience, customer significant made have in progress

business. on Promoter ensure We improvement levels and Our times also other the in a wait the earn, a XX% continues that by minute store of customer these when XX% year-over-year. best to chat customer SunPower less experience to to contact XX%, and Net title measures to XX% service than customers the from Phone reducing phone. improved, focused important improved us

with backup in Our addition industry-leading expand XX geography U.S. our kilowatt warranty. now at we XX-year XX% addition options of our we Under Solar, new XX and with of investments business. First the with expanded products, late-stage offerings, new our hour to dealers to home announced additional discussions SunVault whole cover the growth, recently and an

and intention app has both our in receiving new improvement. This mySunPower resulted mobile customer website measurable rapid are in progress for Our ratings.

usefulness customer for year. plans installer forward have attachment facing already finally, grow year. delivering started over QX expand XX% the of And year. getting $X bookings quickly, in loans billion just SunPower to has look multiyear and with increase over and throughout finance functionality to the X,XXX Financial capital and continues added Financial and more and applications to leases versus updates customer and are of last here our third-party SunPower this new We

about Rising of I supply SunPower fully our supply over this. are are combine pass is products When in chain and clear our year this remind which and customers residential that our everyone cost along important for think right that bills, it increases in that seeing the to and topics chain the supply. Before it to a Therefore, I start these the you for dealers Manu, rising our value utility like still panel increases solar it's able being demand customer increases in turn with On not the unique -- strong hot raise pass to consumers in reflects XXXX. prices, is position prices of to XXXX. chain now, great pricing two for we concerns comment on I'd did to supply fact the is

Day. Commerce named panel main current note anti-circumvention been that investigation, investigation. Department supply, more important has challenging that our has panel even it's brings, Analyst But Regarding with we meet POs become for meet place at been for supply with in not you out to we've able the panel and enough goals supplier the the to customer challenge of this laid to panels demand additional recent our guidance

Sial, Manu share to to over our the call quarter. CFO the turn Manu. of results I'll for detailed Now SunPower,

Manu Sial

Slide you, Please Thank Peter. turn XX. to

first this, in half with and combined mentioned for Peter strong platform for gross strong to year. execution well set continued and earlier, key us healthy story quarter As a is the second investment boost of demand the up SunPower should the margin,

reporting are last higher that to this marketing a are with panel, on quarter, of gross for from our new and adjusted sequential EBITDA costs EBITDA results broadly. increase Combined gross million line to increase first that resulted non-GAAP and residential year, XX,XXX year-end. results year-over-year XX% platform of lead adjusted on XX% quarter, to investment XX% we customer to quarter, appointments, to the labor we track these impacting $X,XXX and a continue in first margin guidance million freight the quarter. of added in Residential our per XX,XXX in note industry revenue. and XX,XXX $XXX with us sales a putting although in spending the before the impacts For achieve by QX We factors remained more reduction flowed customers of of customers $XX

for guidance digital product, highlighted $XX $XX we OpEx million and in at of the As with Day, platform line XXXX primarily Analyst and corporate million. investment is

than expect remainder We as base we the of get spending our the operating to customer through scale year. leverage faster

flexibility with the to balance sheet our Finally, the to turn to us remain invest and continues in business. XX. strong Slide Please provides

We that are target our guidance discussed Day. XXXX most XXXX affirming and our we model for the and at for Analyst recently

illustrated I leverage the and today, add growth customer coming strong have in Peter will and operating As backlog quarters. to

platform we we you year $X,XXX to our to to to to to EBITDA that as quarter. improvements On for Slide XX. for want customer build lead through to before a first slide, I $X,XXX are up our Next, $XXX per $XX $X,XXX investment of starting of million from some base customer see in million EBITDA this Please to we per turn EBITDA for highlighting walk expect guidance XXXX. full adjusted factors XXXX guidance that adjusted the expected of the

half per incremental year that the from in see to a EBITDA second pricing result improvement of year customer to we $XXX improvement cost First, gross expect the offset margin in net higher for of $XXX will full largely the customer to inflation metric. to

did As in especially prices a position this, we since for Peter in raise not strong are mentioned, XXXX. we

to assumes the Day of financial that SunPower recall Analyst target The for also to up system also XX% EBITDA XXXX, to from each full $X,XXX rates attach rates of that the customer customer, $X,XXX incremental year. for target with assumes our XX% per installed we by the Second, broad from a end assuming attached XXXX. $XXX storage of model grow ultimately incremental model a improvement margin attach grows through $XXX to expect

an $XX to sales steady the across $X,XXX customer of year to the $X,XXX first allowing basis the quarter remainder improvement Third, EBITDA spending $XXX nets the EBITDA gap XXXX. $XXX keeping for guidance per come that relatively full customer $X,XXX a by to reporting of marketing on the for the of year. the are from decline metric it to between for we annual to we roughly Altogether, and to bridging improvement per for year, full our out $XXX expect and

see the the our -- Slide about as investments. year effect weighted As seasonally margins Please the of think takes results to we sales benefits should as of you a pricing turn to result, half towards relative higher and higher gross and latter XX.

this we and into new tell I the lease of more that to closed electrical would which more to a Q&A, PPA achieve afford support fund and want you demand customers and our we Before quarter, enable head bit savings. about residential

will that pay the past, use fund as recognize As SunStrong the to revenue. upfront we and in payment SunPower

pleased for for I'm flows cash that XX-plus after with value a receiving lease to to will report lower would service questions. million. equity debt turn However, also $XXX net first over cost renewal of be Furthermore, of the we addition estimated the call upfront time, to our have recalculated cash I its SanStrong's the value of like to SunPower the payment. fund for SunPower's in SunStrong's remaining of that, share With retained capital, also

Operator

Instructions] first Please Your from go question with Morgan Sean Evercore. [Operator is sir. you, Thank ahead.

Sean Morgan

announcement the guys. the made see interested I Solar you to when Thanks First collaboration. on guys was Peter,

thin residential of on film So think roots. typically

of you of was cost kind wondering start as thin What kind the have achieve into sort to to toxicity. of what crystalline -- do some challenges mostly is to to I So opposed integrating using that is are systems? of film your it things

Peter Faricy

by call potential saying -- so voice. a I of And want And number But with excitement for aesthetics, is from very a quite make this radio like do Sean. The I screen by is partnership which in thin innovative, great will And also should like This a normal little its big quite my think by that my allows for light weather, looks allow unique off start be voice, a together of is be cells is and this I we the it panel also manufacturing think efficiently and first not quick apology panel. the I'm and difference we're just you reason to flat a Thanks, build that earnings the excited to picked to kind. really it's both partner film my standpoint, we will voice First tandem really under to consumers. efficiencies. on matter up -- it the films, to think because will Solar, everybody. silicon the reasons. product a to thin lead and first

screen As many Analyst Day, of TV, you saw I should flat at our say.

proven believe be are innovator it’s with out to business. has So at and the First that panels really has then that's itself the utility size a residential great and panels. made technology field combined of we Most a in silicon cells, potential scale residential the the today in of larger Solar

exciting we we can residential So of would innovation of tuned. is size once we more the one done. probably experience same on the think how on get deal is talk we them produce information, the do we'll love areas focused that to and do with We'd side? to to I how that in biggest panels you what All be stay of now say, about about innovate installation the

Sean Morgan

Wow.

Okay. might Manu, one And was because curious environment now. be had this a rate years we rising more many but for haven't I for

to are customer anticipate? loans like seeing away Is that into purchases. in preferences terms impact starting from So of PPA, to Are something diversifying lean to and rise? you you cash leases any rates as guys

Peter Faricy

Go ahead, Manu.

Manu Sial

Okay.

lowers are the the XX%. bookings I major loan are rate said instruments we And we lease new would preferences, it the not to And announced lease financial are rates is we've rate at our as So loan always cash, seeing in comment, capital X.XX%. three, than within attach like seeing SunPower attach of close that including significant then but although, about and our look, less the any increasing of choice. Day, customer changes growth cost financing, note interest just And that all-in Dorado billion three $X pack. at to the been all we then fund leading the Analyst of we've are relates to our new in

Sean Morgan

Okay.

So not Manu a lot, like Thanks a really headwind. noticeable Peter. and

Peter Faricy

Sean. Thanks,

Operator

from is Kallo Please Your Ben Baird. question next with go ahead.

Ben Kallo

guys. Hi,

Peter Faricy

Hey, Ben.

Ben Kallo

You or question. much rates. that to base mentioned a do you didn't I is through your that have I understand reprice or customer first of just follow-up. you flows how raise can Then how want with my

Peter Faricy

Yes.

in we I get. not raise XXXX Ben, the think, environment we the opening way as position real feel there's like thought this we So it, unique so a to we our really made in because in that remarks, and about point opportunity, for this consumers did do we're in hurting an prices us that without value

So at been we've able demand both saw raising you from our we've panels been on our storage for same demand, prices actually for the comments and our time, as And demand accelerated and raise prices. to products.

form to we term, higher accelerate. even go into continues of I QX, together able along you, pass in two early the supply So will chain being those of don't tell will normally And in cost long demand think think the short all in but to the term, things I increases pretty I our comfortable feel prices.

So feel the side about demand good we things. very of

Ben Kallo

your like it's for last And strategy? is except count, you quarter. is do how How environment new highest customer much is offerings? -- it much new on your the looks And how your much think adds,

Peter Faricy

and investments don't making Yes. it because Believe strategy lot it not, of think we're is these new the we're going. getting I just a or just

that everybody many mind, to XX% that you strategic Americans the my it. it's can there add areas of I is on up read paycheck. and in I think live to have the hitting book. now, I utility new Ben, issue But year-over-year, the so And So to right going some that's prices in potential consumers think fundamental the fact hard save are pocket paycheck think when about money. And going the

is would there's save I the actually to But our channels. me and information Raven the to interest in I across of give money. that's some direct our channel, homes, sales position it's been now diversity. that's new but -- demand you And is that across the us a tell only bigger strong about that the you to installing interesting seeing seeing help going the very think thing Buly that across the happen we're solar we're planet, our but very lot our I demand We of has valuable. strong a think board. -- from And dealer we're save channel, sales we're strong And I geographic think even channel, board. to going standpoint also seeing spot this help a it's of a all a then lot fact not something

and strong the seeing Texas, So demand Florida Northeast. we're in

so a strong, It's entire business really And US. -- the business anymore. solar a across not healthy just is this California

Ben Kallo

And in. kind that you added dealer three off that months stands Coming talk where if about where you how you I a and ago kind program, that versus of can just new Accelerator before the sneak from of dealers. of Analyst feedback was Can few Thank your thinking the and one just and just you're all your Day reception it. about

Peter Faricy

Thanks, Well, excited to dealers we've time conference. it in this is This first first person as afterwards first a for folks quite the CEO, my has be with was during was been the in And time Yes. our Ben. of very really gotten management feedback just the I the they've team. dealer the and very, the few we positive. new quite got meeting met and and

it's is really new ourselves. big lead The channel whether in think products. or we products, strategic we've to their investing they're advantages area a now these First points really deal. our we're of fact do going that very had, excited differentiate see battery the they we're dealers like we today is with what experience focus, can next-generation with our are customer very to product an Solar five feel The I the where aligned with and

dealer it's win-win-win. because so of answer of us, program, a part question, to us your And kind is the accelerator to core now the for exciting

The first make states. the we new investment helps grow them in

if and exclusivity take and the we dealers. as being now they're Texas, in like and state look to Freedom help to states you installer take most of So them in lock a of a would solar what learned the of investments, Colorado part capital. at they in want Florida, provider these But love we with by outstanding Solar, there these apply they've also,

on with And it And so, exclusive also each us products. products, they're exclusive EV panels, we on become then, of with whether storage, chargers. physical be all their other financial

things so two in combine with us And the and investment payback incremental on time. we exclusivity is quite this an quite which like when worth this those companies of course, these company, you together, be will companies quick both over believe more attractive. And and then, faster for for do equity growth, we that an together, more investment the

parties. ways to both I of them. is So really think and starting dealers one make And attractive for of the an it's promises trust model against the deliver

XXX dealer I the And and a our this them homes those million think told the the it money investing excited our Thanks, move focus our in, today, to think of channel critical XX in I there's solar. actually making. one that of success to they're sales we Ben. as historically, part only And across them to forward. of is installing delighted were X really we're invest that, of but faster. homes all they things I remain our approach of where company helping homes, is about heavily many will We're be we're dealers save we that big have investments would will land million and In taking channels. this need investments on that quite grab million way the grow

Ben Kallo

you. Thank

Operator

Brian Please is ahead. question from with next Your Goldman go Sachs. Lee

Brian Lee

questions. guys. taking Hey, the Thanks for

Just some actually on the details had financing a of given side, the couple here.

funded that what capital X specifically? kind than of So on on fund less you terms side? you Dorado many you capital Dorado of cost the implied release volume of the I was talk in megawatts highlighted fund think the how then And visibility, now also, have and combined X.XX%. now cost about Can the is

Manu Sial

Yes.

than first. the to one into this So let next us our me at lease that about all is $XXX about And roughly through And we point about lot then it talked early And a million. previously that the year. is at attributable A is, to then start way The think we with cost of fund basis lease. in XX X.X%, are capital reduction. the all second some part and fund including lasts as of year, have loan of well. talking of more

Brian Lee

kind I Manu, in ABS maybe Okay. I And guess, think on you tipping range. capital, the about Fair how to markets contemplating the for debt overall, of, yields those tapping enough. know, the strategy? financing bank trying but into terms up are solar I market, securitization answered you're you of setting just new know, don't this, products then, some of the the X% or sector,

forward? this this lowers kind your So going about can you we at here, that cost else Thank do it, static we kind year think kind of, something Are of of, more X.XX%, you. of further? capital if

Manu Sial

Yes.

So, it lot take the let unpack there, to me pieces. a in but

from to think of about lowest capital us, the it's consumer. to of as about range how I flexible and providing XXXX wider most for capital the cost think

we of consumer overall that features $X to So as wider about into including we've to allows financing billion well loans, a lease financing, added base. talked us as over the go

So that's one.

the ability sheet things. we've about, sensitive things And balance as volume, a I've of and make. we through hold less there capital comes rate interest to gets ability cost are Also, back depository improve our more -- as capital that and less to as lower want this of our I or capital the talked grow to to a it cost our which point stronger, of which environment. like is rates. capital, interest in cost of our I is, I And capital is our lot get we then think demonstrated from other think

utilizing lowering capital basis more arrows capital an basis. or on more as on cost should importantly, apples-to-apples wider in think about an customer our think of base. So there But you our cost to I say, us of are quiver SunPower of would to Financial go a apples-to-apples we

Brian Lee

a right. on. guys. Thanks lot, All I’ll it pass

Operator

with is America. Bank next Please of Julien Dumoulin-Smith Your ahead. go question from

Julien Dumoulin-Smith

Thank the well. progress. hope team guys you. Congratulations I you on continued are

guys then at Just what tried increase get part, two earlier. question you quick percent customers? contemplating here, on first that to here just price your know, probably I are

out Just to available considering And at can -- little the that a I'll latitude you try as about panel here? is XX%? talk there's here, through rates second that, the said end you supply how you just the perceive ramp and a in availability bit much attach you year, to the related know a bit there's of commented one I where having attach target reconcile obviously, to supply there rate too. little ramp, what of then to the the you get throw you by yourself availability on a do XXXX to are, there, same but time but given here, the XX%

sides? Just both curious on

Peter Faricy

– the to see difficult know, The Yeah. great Thanks, chain Analyst of environment. is would on one you at last and front, describe this you is the month we're supply – as this, it I pricing Julien, the Day. the most way

the XX-plus career. year For difficult my in me, probably most

that but day, the just hand-to-hand sure find that combat manage to week, absorb make that ways architect increases price cost trying time. for anticipate, The actually increases, cost is to increases one increases. believe our into those had we've the reduce year this can cost it's turn for and we week and can, others not thinking take to we to So and day we're that any one ideally, we've those over we been about we cost way and it

QX, has and without QX actually materially demand, demand QX. far, so And hurting accelerated into

good here, our And chain over from so really there said, supply as would time, efficient are about I So we fewer so our that where and actually our feel over that manage increases. cost time. cost architect they're products goes goal more to be that that

the feel I headed quite On we Financial. where on rate, attach comfortable SunPower think we're with

well have the we're target at is to we goal that in above already is this XX% get But the terrific. long-term XX% year. Our QX fact

a both from capital a year. and from that serve with and customer have, the demand the are a have obviously, numbers this to you we we perspective inventory we so perspective, And supply we guidance panel perspective, from need consistent gave Sunbelt the

good the feel we guidance and relative about So for XXXX. batteries panels, capital to

Julien Dumoulin-Smith

XXXX that Again, Yeah. X,XXX to level, And rate based does at just about that exit what's you're talked the but X,XXX on on X,XXX you run corresponding an here, a guidance, I higher thinking that? you're customer as where the starting per about run to rate what specific to get range exit QX. this to that imply at $XXX

talk can that you're mean an you at does what XX% If of XQ kind that XXXX about like range being average, of now, and kind exit?

Manu Sial

no. Yes. I your understood No, question.

from kick-in X,XXX provided I'd up the quarter it SunVault well be Financial rate. about as is than on we attach terms as I you rate rest how first going think I range. think to of to have we we get that I’d higher way the of largely SunPower X,XXX. in as exit is to of average – the get the the we is as starts The go say, the run driven to And exiting through year, by, year midpoint clarity of said, as XX% the midpoint say the

Julien Dumoulin-Smith

Got it. Excellent. luck. Thanks, Good you see you, again. Good guys. Thank guys. to

Operator

question Please is with Price next go Graham Your ahead. Raymond from James.

Graham Price

my question. for Thanks taking Good Hi. afternoon.

So the about since with charging Wallbox. a EV partnership year it's been you started

So I progressing? just on update that's to an wanted how get

Peter Faricy

opportunity Graham, reasons. think, I of charging quite for a we're number EV the about excited Yes,

on who that is vehicle solar today, charging EV we an people -- which system roof. of a customers, XX% them electric of One know have solar product have a

documented there, think coming incremental well across the to pretty an of capacity solar. and forward, think going thing have we electric the be who that the we out so between that support do charging it's have the to grid vehicles the as people we'll the there's enormous want is OEMs to that doesn't And have EVs new interesting nation. addition in then overlap to I number been who And the that strong fact people amount need of look

for So as linked these I really being practical think interlocked together. view things and purposes, we

I a with the EV think terrific in still They Wallbox. relatively make with happy product. strategy it's We're partnership. early their

is for to install chargers, us I with a and success a new we've really one. the had think homes all on into great panels, EV integrated most there's opportunity batteries solar complete system

probably the bump But biggest to with. So that I begin area tuned. seen will the stay that's say we've

more about on space, in that goes have excited this we move working we're We as forward. and where

Graham Price

Thank the a maybe metering switching And in net for just headlines gears Florida you bit. it. been Got that. recently. has then little

by XXX So whole the just Governor and wanted HB to of DeSantis get just situation? your veto thoughts that on

Peter Faricy

going I'm make residents. some obviously but happy was of Florida and of to line with desires now. Yes. the thought it on call, needs our in comments to much We it Absolutely. comment to very the I'm close

Florida know, metering business. pleased tailwinds nearly seeing few say one folks will their day, are higher full costs the now going program of from state getting a policy to to many residents really benefit impacted of and end benefits. be net the utility the the energy to in see actually that quite think state by that was these I'm was we great in The DeSantis where do every You we're at because I Governor veto

is a of is if California, was proposed a frankly for it is has of very This the terrific delay will And it at at reason. time part very we're a when of benefits in to to where Florida. there's to And planet changing adding popular a time the move rates a see take been damage the away and solar are be are utility quite at thought the I take history rising when any this be This record amounts. I reason UN time wrong we're really permanent suggests was program popular and a thought that to doing most report in courageous the states time so think XXXX incentives, been pleased in look you by going exact the that very I move

Graham Price

pass Understood. Make sense. along. I will it

Peter Faricy

Thanks.

Operator

Philip Shen next is with Please go Your Capital ahead. question ROTH Partners. from

Philip Shen

questions. taking Thanks our guys. Hey for

serve Peter, about to one you I is have meet demand to customer first talking and availability. enough have The were on guidance. module you

PVS are week modules to seems actually it's getting the or you're available are could there's is guys suggest have. can module very that beyond talk one like then that people seems or equipment, is around. required getting checks for Our next the and that in then It your dance how it, and substantial commissioning week the not, through guidance? the and key supply And that needed delays It monitoring device tight but you also actually which like what's X, you tough through limit that systems. and system

inventory if I going supply a you through or perspective wondering -- more on with chain detail? could from So, what's bit little was Thanks. a actually talk

Peter Faricy

Phil. Thanks Yes.

panels. with start me let So,

we of might exclusivity. you agreement change to panel a agreement it's the supplier, a that remember, the made with our one current supply big our As to one-way as improvements is

with suppliers. other ability we've imagine, and a have we that, of been exclusive they're have the first but was agreement might was reached working the out number And supply we advantage out is us, panel taken seek with to and did that that of once you the So, of very as alternatives. panel new things finished one we

because what for demand view report our But from pretty see we year we goes good can in also than on both is. much So, see where we've and we -- guidance this publicly. where higher demand of the a funnel got can

supply to very goes call, feel panel our monitoring. but there that I that panel PVS level is on. panel really board installation chip-related think the primarily, And necessarily will be we're customers always going panel fast to of for And delays to. this serve to premature year to to panel are is other be well. systems, total the some level with do two down able enough to do panels most across be actually to of that do working slow announce then have still we those It's they'd slow down we'll but make able we to I'll on but it on those sure their not particular of comfortable monitoring the panel well-prepared as but the may with say be as like have customers suppliers delays, supply, not required that's our X it required commissioning, supplier, as necessarily component existing from ability we solar

and given good to back that for can we day, customers. in one supply in how expect combat, on that's hand-by-hand that fast don't back this get for get frankly, working of we're day see those delays and those But we're by those stock the we've year, year. impact customer to we have, any of expect this impact have experience material don't on to a we guidance a it material our So,

Philip Shen

general, other team new up the have. with probably Great. some happy slack it's Thanks for dealers to we've are suppliers, pick a talked And problem very to the The good there. like panel In that two can there. management sounds detail.

it like doing job. sounds great you're So, a

As it relates--

Peter Faricy

think first. do go I lot. sorry, -- a ahead, Thanks you

Philip Shen

Peter. okay. It's please No,

Peter Faricy

have. just problems having I I'm think business highest can I demand the think to you problem, going class say, is

more So, the more get our to hard we working we needed fact to dealers, work along thought year, that's I supply, a think this on. delightful we're with problem than that

supply that more more a problems work and demand. together. to need because So go, as got as one, That's good chain we panels we're on really far we happy

Sorry, go ahead with your next question.

Philip Shen

Thanks the is. sounds what Peter that's like it and situation

think the of we deal see do think, you to the well? it months. deal, commercial I Thanks. XX get we or the are two you First Are do a maybe Solar think could quarter to factors Analyst as finalized. terms drag deal consummated? about signed on talking it And With becomes before a fully could in the a within and when at what year or So, the like gating that could said, sounded offer XX Day,

Manu Sial

Well, quite I you mean, companies. opportunity imagine, is both this an exciting might Yes. as for

be become Solar, the and focused something about think we're reinvent panel obviously, for to world that's delight be something before and and opportunity to quite would that's And scale. big business in First on really let world. primarily a dealers speak residential our I'll them They've a that for and utility themselves. the the customers. big But be excited think the enter part been able able of to never excited that exclusive we our quite be player think have I utilities for to something and I existed they'd

imagine, go outcome of work next it elements a have on to of of we So, as a would as both I What because bit you time just those couple like together. deal few are through an discussions want quarters. companies takes that we'll a in there quite this, the might expect, little

something is So, I that don't this on for drags think years.

aren't next with talk in be about we'll of customer headed to able we're you and in to I really to committed have look like us think double to areas to more hardware want where innovators couple Solar companies work forward, the also think and seeing First quarters. having experience, I as to the in so this the that's opportunity look our most down in be And really then as – Thank as roll about We as gates hardware together. highest we that. new quality the continue products those customers mean innovative We continue important the others, Analyst really software, our to many this -- is on we're addition and innovative most the out talked for Day, to business. think innovation. to really you. at also to we will any heritage by we software strategy I there as be that want

Philip Shen

or profitable? channel? is SunPower change that specify, to but it's that's for business to Which more how you say you would tough the think unit, question. mix the right term, overtime? do dealer be Direct you last One expect Would Maybe if you

Manu Sial

which think -- I'll question But tough for to give I this was answer. color. a children This is asking your I'll favorite, of your that's like I put you fill up up, what

business, play anytime fewer think direct see you that efficient belief there's out fewer more thing And and you think would could become I more There's models, profitable. do I would steps. business with in and be own the same intermediaries a that just that that you you'd most here.

for be say very I think And and for Blue direct. include the not dealer though our business fair profitable, a installing it's of I business. more SunPower, called those I both direct it even even would But are way, also think I to profitable. direct but think dealers SunPower both SunPower as Raven our is our by business, businesses

Philip Shen

again. Great. Thanks

Manu Sial

Thanks Philip.

Operator

Your from with next Please go ahead. Sandler. Kashy Piper is question Harrison

Kashy Harrison

questions. Good and for taking the afternoon you thank

quick So real just for me. ones some

I have year-over-year guys bookings think in you the past, highlighted growth.

you can around, for so, year-over-year your number is looking go And because And quarter-over-quarter if growth missed this a but that looking strong, apologies provide is strong. then I QX? growth at at

just demand And pull-forward rates? you curious, or a seeing the rising that think you're of seeing so some is part, NEM benefit uncertainty, do think you're for demand most the do due to you I'm electricity the

Peter Faricy

two that mind a growth so or of -- revenue for And even time, funnel, then rate customer further than the bookings being then measure give bookings. let both bit And well-above customer also from little we them Yeah. higher I who've you We Kashy, growth me of measure that's actual measure number that. ways. customers QX booking in I but would don't on booking the color the the contracts, growth year-over-year. well-above revenue the booking was And in very not standpoint. XX% as think describe up contracts. the it a are customer but customers growth the and actual some We we've given above us signed

actually faster customer customer faster than on growing side is at side actual other added. the lot are than our we in bookings a we're rate growing words, a on customers the the So revenue and

feel to strong optimistic being right we of able world. think it's to because pretty save matters being to is fundamentally I customers money this all and save able during here So the demand tied that money times

where Now we uniquely think I thing California. coming said And demand focused look a on that, other don't having is the think is at from? the I take it's

Texas, and the it in from mentioned saw demand quarter, Northeast. we quite strong we think I this Florida call, again the and last

our being California we And I of the So be those areas to about think talked about end business strong. non-California the continue XX-XX by and very year.

and we're track to that kind of good seeing growth diversity, demand now. outside achieve on so geographic right And good we're and of California

Kashy Harrison

then follow-up. Peter. quick there, very helpful And just one color That's

looking use of Just was flow decent a statement, the there cash sized through working like capital. looks it

to? on that you. wondering of then think working give us to the Just capital some over how could guidance pertains if course what the just you about year? maybe Thank changes in And

Manu Sial

Peter, I that. can take

That's with One, one. Kashy, things, very of exited quarter strong a couple first sheet. a balance So we right?

bridge the the related the of in that's pieces in working the through to parse appendix, was use capital you Financial. as SunPower Second,

books. As time be may straddles you quarter. time, to working keep there the But capital is assets model know our that not on the to that

that years as alluded and come raise actually earlier to XXXX, balance we'll from to I quarter for call. as point we the the we a capital well you But the number billion over you beyond the that we down get modeling the back start view onto from sheet said utilize reference, we bridge expect capital. out to $X as as to third-party just that of cash in think of a first see rest would of perspective, year third-party

million over you odd on in see So the quarters. -- page the reverse next few will the $XX the that

Kashy Harrison

Helpful. Thank you.

Peter Faricy

Terrific.

Operator

session question-and-answer for today. comments. call I the back the Faricy hand ends that for Mr. And to will final now Peter

Peter Faricy

of very everyone and and thanks you support your Terrific. for Thank us today SunPower. for joining much, again

promised, I of industry the of you As policy. want to with state couple and a leave our I on thoughts the government

more number more up year-over-year electricity household according As House rising family are the of bills than a like Energy a that could White most average American year of homes. solar solution. using rooftop electricity from to energy in the their know, consumers the analysis Department resilient need rapidly states our save from of and and urgently found clean you power and heat XX% U.S. A across recent country, stable pumps a $XXX affordable, the to

order it's across energy more a Investment we long-term solar all or to pass Credit, in at the imperative geographies Tax Americans, income solar of XX% value. levels, legislation to all believe includes accessible, more that at Congress So extension make at ITC, that

a the savings is extension of to the more us clean jobs of administration. decade, also middle create XXX which bill As utility priority than for years the all XX the than million across solar rates homes, could energy next rise, extend for X would million high rooftop and by this the and more

we're particularly states the and developments opposition was the terrific. at redo eroded level to solar. a business. the DeSantis benefits seeing metering states a substantial of that would program quite actually bill the policy there's As of program energy few mentioned proposed have been that people reduce good metering to that delay to energy state states the would Governor clearly the popular policies the changes is California, the these I that eroded earlier, news in the to towing net In rooftop the that show tailwinds,

consumers incentives all In and increasing rate forms improving are move of clean, actually for to the of sustainable, and energy. electric states designs to reliable fact, majority

as CVD While to colleagues soon are not Secretary pending issue be results impacted SunPower we of would Commerce significantly with a aligned decision the investigation, our as is later President preliminary energy May. jobs, growth, in of to no of Removing climate goals. achieve for Biden important than the consumer by urge industry the end vital renewable U.S. uncertainty AV, current ability the the solar the possible industry and and ambitious benefits the and and the

to with and We will to who the in our viable And it We first meaningful quarter everyone take earnings look to we are to call. incentives, Thanks. fact, do but partners next forward for industry. be manufacturing in this, thanks make increasing American hope of substantial you solar call. Big government fully good in for talking supportive this a our again those tuning reality. for

Operator

conference today's everyone, you, joining. concludes call. That Thank for

Have a and well. safe great night. disconnect. You Be may now

Sunpower (SPWRQ) 6 May 222022 Q1 Earnings call transcript