- Earnings call transcript Q3 2022

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Good morning, and welcome to the SunPower Corporation Third Quarter 2022 Earnings Conference Call. [Operator Instructions].

As a reminder, today's conference call is being recorded. I would now like to turn the conference over your host Mr. Mike Weinstein, Vice President of Investor Relations at SunPower Corporation. sir. you, Thank

begin. You may

Michael Weinstein

I third would everyone afternoon. to like XXXX earnings our quarter to conference Good welcome call.

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

Following Peter's results interim guidance the for SunPower's and then will comments, CFO, Guthrie year. Dundas, financial review our

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

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

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

Peter Faricy

$XX high our continues and growth on value rise, we for by the XX% year-over-year. against and those offset million XXXX everybody. the good to Inflation continue as are reported from rates break market peers. build track we end and tax to solar morning, of to share growth guidance our continue the putting profitability, Act. customer utility The EBITDA entire more and this pricing, With for higher a and quarter, revenue, Mike, systems balanced quarter, of growing metrics. us storage half We a incentives than approach grow In towards of the costs Thanks, adjusted records to Reduction third and first

turned also backs. balance and hold this building, SunPower's cash and momentum and now an million $XXX cash unit on quarter on generation equivalents We wind sheet. we the like we business our in positive underlevered is have feel

as very added offsetting you shows year-over-year our and costs. and are a XX% accomplishments in past increases share We residential demand world's to residential forward XX% the customers of Slide to investors. Revenue solar strong company customers be and also I'm turn a both of solar report demand to with and we pleased specifically. to the to grew that that the year-over-year, at as we Please quarter building increase this higher our #X. impact customer for customer excited quarter, for look best SunPower level our persistent strong, XX,XXX for are product new price installation continues

direct SunPower XXX% see the to and sales channel. growth channels We across continue our customer strength note of the year-over-year all from

set versus high customers. Retrofit backlog Our quarters a new XX,XXX at recent

you having the in customer renewed a Reduction have this the by offerings SunPower SunPower have passage benefited also Many we per weeks Act. and in of channel. begun to $X,XXX before attach are SunPower Inflation a in customer attach higher Financial from interest bookings year-over-year we on XX% the $X,XXX note reached pricing to sales to storage concern Direct benefit the Analyst as Day Homes rate about rates our able backlog quarter, we rate recent of system lease Importantly, slightly adjusted bookings has EBITDA installations lower homes. attract $X,XXX we'll to guidance September, and believe the the grown up Platform be XX% In since Investment, partners to XX,XXX and expressed Home achieve for in energy third year. to raised third stretches new higher continue partially for SunVault offset and New quarter pricing. were Financial that the segment. XX% quarter, New homebuilder impact out the that mortgage full

We under continue presence and showing working long-term and the strategic we extend important current is to the are see economic our which strength to in California here, multifamily, conditions. value beyond

of Finders to booked EBITDA to Slide of a are of X limited highlight reached #X. finalized $XX Inflation Even growth $XXX across EBITDA been With to this Reduction we've line Progress we value EBITDA decade. Slide to here standard customers increases, improving for are Please pleased Please adjusted the Act per steeply turn with XXX turn also as also the well not turn EBITDA new in throughout reiterating want million We steady versus helps of higher this Dream value this utility increase bills. acceleration I to our next both has price The million through we cost customer to nearly build illustrate the Please conventional of Homes propel and proposition residential agreement growth top both #X. rising to guidance to year, million considering seen and the X. solar to full homes widening year. that Slide year-over-year. year. for have in and $XX with communities solar borrowing continues the other Colorado. revenues

in than fuels continued conventional of to states XX% inflation utility recent in electric elevated, cost months XX.X% the As year-over-year increases XX bill accelerate year-over-year. And August. to remains saw greater

value SunPower earlier, the Please the #X. rising announce a and the bills, the of ways powerful solar of SunPower preferred with noted chain agreement, the will this reduce ownership. solar turn Motors new were provider the General quarter. industry and labor. capitalizes exclusive will Most home proud supply GM and power rooftop very sales that to collaborative to charging of installation arises per naturally We Level of Bi-directional customers, new one the despite Slide partner be Nearly agreement home, in most charging adding as remains to an all EV this from we to X which to view elevate vehicle residential continue for the growing solar, channel be stabilize I costs and XX% vehicle. proposition EV typically steep equipment. importantly, usage electric that electric As solar raises interest home important occurs at on more or Under XX%

This to X. experience. obtain allowing America reduce conducting self-service scheduling the quickly So new EV XX% bill Please for Slide it's targeting reduce Slide capacity decades. on X an surprising assessments a in well SunPower cost to XX% be pricing, XXXX, serve will turn clean electric customer order from demand of home that and of Please as GM EV customer expects extra solar EV this as and is remotely, to audience global annual #XX. to reports and stabilize reach way affordable to more at to nearly SunPower more with everything rooftop owners have is preset North tracking not help customers, cited effort. solar to system. turn help payment efficient best new, Residential energy. to a clean to includes occur this can In with than minimal energy going a units purchase in that some to there million build

of strategy. we made share have you against our executing X the with the progress I'll Finally, pillars

SunPower accolades. public For continues customer recognition experience, receive to and media

may recently company #X CNET United solar by SunPower the the States. be we the home seen solar that You continues have are in installer ranked to and highest-rated

of our new Award launched we and a SunVault versions products, win Housekeeping Good For as storage quarter well. system this

targeting panels QX. U-Series this in first demand. U-Series important the being part the consumer installing to began serve of mass are also an panels We market able growing

with panel production closely on agreement. work to Solar continue We a First

supply Act agreement procure beyond to sourcing Inflation chain also incentives. those and supplies we Reduction to the up encourage Accordingly, for includes know, to are been that production. with and to discussions align panel have with side you of the best beef share you I evolving working First XXXX our benefits with want As our Solar significantly. industry-leading standards domestic the diverse the modules complete materially SunPower warranty across with also for SunPower serve to solar customers quality U.S. Maxeon, residential SunPower portfolio in our carry talks AC well-known DC and meet large of reliability to the a These modules XXXX. and confidence XXXX suppliers, the multiple and additional and will advanced and is including

in to and storage dealerships Renova master made through the Accelerator and program. of exclusive growth, of Dream nationwide For Dealer new Finders provider a solidified exclusive agreement investments X-year solar be its solutions. our EmPower we We with Homes

the year-over-year response growth. teams demand increase utilities that participation. significantly systems both enhance attachments For continues finally, in dealer for also net will that launched and faster customer experience. We've for preparation to of XX% new our our a will initial communicate with dealers tool visualization than engineering power build with digital, data customer virtual bookings, real-time the SunPower software customer allow future overall completed and plants higher even Financial to And interconnected our

and share gains will We focus a are our since QX a Guthrie seeing Guthrie? customer are the large for over with turn now our working. on faster XXX% world-class at is passage Reduction Act. materially our industry-leading In growing summary, bookings experience inflation the PPA year-over-year of With lease strategy and benefit coupled attractive and that backlog more options, XXXX. results. well driving it I'll details products, financing we on us market to providing into

Guthrie Dundas

as I'm pleased CFO, to to coming on turn I Interim to first with look Please Peter. call and weeks. speaking you you, all XX. be Thank forward earnings Slide the in of my

improving earlier, for mentioned third quarter. SunPower EBITDA per key in demand the remains and the Peter theme As strong customer

backlogs we achieve continue guidance. quarter fourth looking good the year into our ability a month the our in, belt to heading full healthy and With feel under to about

of year passed $X,XXX Platform reporting XX,XXX the increased million third labor sales. accelerate Customer revenue, full the quarter of a from customers $XX benefited on year-over-year along QX. in from XX% QX, track to Adjusted in as leverage added XXXX keeps $XXX the remained from and equipment, that We rapidly XX% per For were pricing. our growth the XX% of increase XX% we operational we to shipping non-GAAP and adjusted we cost us year-over-year, are to over gained above saw higher of for which QX an in year-over-year as million Adjusted gross EBITDA non-GAAP and increase guidance. XX% quarter, new the increasing achieve continued margin before Investments the EBITDA

Platform digital Day, products, $XX the Investment corporate we at Analyst million As and primarily is OpEx. of highlighted

of Enphase with Our balance share. stock another $XXX sheet million sale around of per QX at in X considerably the strengthened shares ENPH

increased only to and hand level the business. cash net us healthy a of recourse in of providing leaving with on invest us with flexibility Our to $XXX equivalent million, million debt, $XX

at Enphase also of the We end million quarter. unsold X.X shares third have remaining the

the used capital lease With to support our Value X% given SunStrong Please Net around discount the to of a renewal rising are of of valuing million portfolio stake ownership XX $XX rate, sensitivity points Retained a $XXX in basis per value turn discount now Slide of now debt million. XX. approximately estimate contracts. and we at the of in these rate, our We growth cost using

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

to Continued results towards this year contribute leverage EBITDA the our full strong in that customer operating year $XX platform said million discretionary guidance. We've for range second are entered the investments, full half. weighted to $XX all quarter our and I'll meeting year-to-date year. previously growth, confidence And that the versus $XXX EBITDA our million of with we guidance fourth note of million

highlight results for year-to-date per XX. Please to will between numbers of for $X,XXX walk slide, Customer guidance base per through EBITDA Slide $X,XXX Investment, to update for our to year of On starting Platform a to full These Next, to you I XXXX are we year $X,XXX customer. guidance and updated bridge $X,XXX lead rounded that presentation. for EBITDA turn this an $X,XXX factors year-to-date. full the from

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

target The attach a from grows run Day Financial rates through the installed to also assumes of storage by XXXX. the recall Analyst also our that Second, a SunPower systems target that XX% model end grow for assumes attach rate modestly rate XXXX. model

incremental Assuming up customer margin improvement to modest of $XXX year. EBITDA a incremental per each to ultimately attached the $X,XXX of full customer, for for $X,XXX $XX to we expect

XXXX out of OpEx per Altogether, sales that expect to customer contributes and a EBITDA $X,XXX. continued roughly for are of of customer nets to our on in Third, $XX bridging to result between the basis, to for demand operating expected $X,XXX $XXX the guidance the for the year a full per annualized improvement $X,XXX as we gap year-to-date marketing largely strong customer leverage. an that improvement metric, and reporting we

and excludes you to that total future customer upfront renewal about QX. and of incentive being years. continued conventional demand, we entered future no utility expect continue that battery to of is quarter SunStrong. as value We As either equipment Any higher the think that leasing strong this by is discount of required. prior and base excluded. want pricing in of state building own customers may It are strong with has accrue the that federal to a customer fourth weighted our should the to grow cash upsells other an are I for a profitability QX, towards and per with the us we increased seasonally programs. extension and sales The in also here EBITDA ITC starting or It acquisitions services virtue into also the we build through systems that point, to value excludes through this years. bills of residential value lease emphasize point cash tailwinds driven support

the I on we've are you. our these building for We look the seen would cash successes of We laser-focused in to operator, residential that sheet to residential over best forward is now turn with best that, the like company creating on possess and share solar and to together call a world's With and questions. market balance all position years. growing

Operator

Instructions]. [Operator

Our Kashy of first Harrison Piper question Sandler. comes from

Kasope Harrison

oral question. So revolving arguments first there's policy MX. macro last around that CPUC one, week week next The some indicated

policy you on telling revised department proposal. timing your And is the curious a what just of so

Peter Faricy

nice to Kashy, you. Yes. from hear

then a sounds provided the day likely is, we arguments on some guidance comment California oral pieces post-election further there'll know, for couple period on believe do initial take there's XXth. opportunity and a for you sometime as place that NEM, context. And think, of So this of One revised that be pre-XXth. and revisions. will meeting discussion It an there's I at

that how see we'll so over And time. plays out

will up best the I our that attractive. hitting was through that mind to would you think deck, a then major December. risen customers optimistic X think deal guidance the to consumers there's X last hard Page I great issued cautiously extended. understanding, it our XX% then. of an And and changes got of have that's for the then continue value improvement that important year-over-year biggest the fact prices in really makes increased and be August. and I One And probably guidance initial since is utility us new guess I that been on And as to solar earnings X context describe the since is California saw proposition IRA That's California compared the California is keep the really solar number incentives guidance.

been would impact the but from what the the see minimal is the December. belief We'll And guidance process it's the see likely we'll was issued have than be today impact last that more that much so revised is. goes, where to our guidance

Kasope Harrison

question. And maybe as my then follow-up

customer to full a doesn't guidance, year meaningful the really into of deceleration year-to-date expectations. a 'XX results, suggest the you've which decline quarter. the XQ growth made to ahead last well implies you which or sequential relative year-over-year running that It demand is and demand So in your reiterated commentary reconcile

what's going as about that on curious extremely Just XQ conservative? customer. so And think the just full guidance year being we customer should with

Peter Faricy

you to conservative. I will me customer say Well, call it's listen, to fair think that. it it's But I fair for the guidance, think yes, be on out extremely

on comments, to fair I range. out high -- . high the the for it's end think us think the range customers at said year. on to above But on put will or point I track I this that and be the of full end my I that think we're the towards the in revenue

Operator

Morgan Our comes of next question Sean from Evercore. the line of

Sean Morgan

sort some being Peter, the of the So able of SunPower of think is and of customer of to towards interesting tenure out sort costs. goal acquisition one digital at this drive I your aspects

know guys about goal able year the customer you on steps just I of kind of talked of updates towards achieve little a of that far curious, been costs? kind this tangible have those out some last of just we've driving sort bit, quarters of X but to acquisition kind more over some the So maybe off-line so

Peter Faricy

talk happy about Yes. Sean, to that.

to the think of make on them positive are me the to really in solar. I industry doesn't So couple and how a value years way people new the it planet. costs so was as helping big someone We're we're is sense would I think acquisition And be it impact high make to a strong. extent, ago, saving the because money I customer say guess, best surprising, proposition to some

So can -- should this to get is and like me it get have hypothetical, we lined a our that felt more up to disconnect really we if there at power. out, people message was offices solar

that the of explore see things One much I customer at to of. you're process about talked Analyst is do more to that things efficient. partnerships X think we're evidence the -- some beginning trying So we Day make we're to acquisition that excited

as not they're want with about, to just talked time. quarter way hope reach very, over products we beyond want to likely is other EV many partnership if likely an come solar very built we think pleased and and are is them. an attracts someone set conscious like specific that that this you we've It Then IKEA, for with We're so more that customers products special of about So exclusive partnership. are charger which Motors very efficient we process far brand. but and storage, a environmentally and people announced General add really who, to the a an big to

do digital to of X the opportunity there's X partnerships then ROI our And of for spend. And marketing an the improve is think is, that part still from part this. I So us experience Amazon, really this bidding over my tell And you mathematics. algorithms can time. a is intelligence software into more built combination about at getting I of your that and it's more and

smarter that So to about can begin choices your where make money. you you invest

still opportunity continuing forward to to forward. that there's amount to go of we there, looking for improve think a to us I I'm and good improve invest as

Sean Morgan

on to then think side. adders side of the sort And have benefits. for opportunity for the there's of been ITC IRA, think But an lot production going the focused probably people a Okay. for be I I resi the

team best you of months of for this finance digging that guys recovery for now. tax sort and in a you of a couple for in terms lawyers -- of of had of like, I you your the now so best with people what thinking sort an about And case guess, Do have sort to your -- for case customer scenario. cost adders sort ITC install benefits are

Peter Faricy

Yes.

U.S. think, with government come is a Sean, adders. those for bit it's a that to view little point qualifies very what defining the I much reason, one of -- still for premature out is on the which yet So

if so serving is working it's our quarter. XX% give get first just on good company, understanding still the you really and a for That's And sometime I underprivileged adder definition, more definition which the where they're fit one one for communities. that's our in that we'll

the we're with close. we're comments We've them adders. the year help to the Energy and next look staying define impact We've them work provide our color comments the to thinking Treasury at But we're Department. to on to business. about we Department So U.S. provided beginning to those what think trying really closely ways the sometime for provided our of our qualify us to appropriate for of to how is more

Guthrie Dundas

I to through amidst would obviously, clarity. those that well extent very to positioned we're the -- would monetize and working I be Sean. just to just maximize able add getting they're feel Yes, are benefits this, applicable. we We add, Thanks,

Peter Faricy

Yes.

that think about company that's we've we're on across really thing financial I mention, one to only talked vehicles. previous calls, the Sean, solar indifferent residential

our becomes very want in content to more U.S. So lease best you positioned them to we as we've them. we vehicle and we're grow strong lease-heavy business business, know. business the a because believe domestic adder, of offer well customers that's the We If cash, the be able lease loan. for loan choose a this really and got to

we a So in feel of advantage forward. the position like good we we're components to IRA of very of take go all as the

Operator

& line next comes the Our of Rusch from question of Colin Company. Oppenheimer

Colin Rusch

trajectory Can the you you sales a little energy within rates the process storage talk about on bit attach for guys?

Peter Faricy

Yes. Yes.

in the of supply our growth about comments, talked pleased opening ability on chain of sales. our with had storage. to the impact our to continue slowing price we think as I that But we're So battery battery cost in increases has

of So attach that beginning And of about our and I a at every each point it growing selling -- of any still have concerned that have And energy. sort the units would of a from storage flattened desire SunVault out, is bit think be we rate a but year. has owning a that lifetime of clean we're with reasons more is on quarter, quarter. battery to we philosophy we're our have during customers. can cycle the relationship this something one the more We're home life say, not added I the

panels, able if about maybe a think people panels, think but customers our battery few, about do you to in very over existing of think XX-year customer incentives offer we'll differently. base battery the will think typically to We And to they to be adding many first done. a once basically, think increasingly, add they So back installation them storage are be time. increment. come about able storage which We work and

of think the are as early good sell a attractive time have signal more we how But batteries attach really still I the that kind we'll opportunity purchase. is go. believe on to of batteries rate an we So at

Colin Rusch

economics appreciate in talk into bit look either impact the IRA geographies. at you're geographies inorganically? in a then that. of I new or new entrance where about terms new little you And evaluating you organically at Can the of if on

Peter Faricy

mean new me what you more you when say And about geographies, tell there?

Colin Rusch

or large fully, entering Just you're in mean, particular expanding presence you're markets. different right? to going new I locations, markets states now not XX into be in the what right in

Peter Faricy

in say U.S. the highest Well, we of solar rate the U.S. I what coverage company residential have the would any across Yes. is

and and most across in we So markets cities APIs really are major U.S. most most the

us from savings think because our That's the U.S. the the to would the of of Energy I people most really those relationship get think it's probably these communities. customers the where passionate solar, interesting benefit underrepresented both some and faster. communities deepen of will the about the new allow help do underrepresented in IRA dealers a new are on of think who with proposition SunPower these how underprivileged probably and hands across and Department the communities value people we solar very are I And lower income and I

So those faster. you to are the will us areas that Guthrie, it to anything? think IRA do I want add allow expand

Guthrie Dundas

further say basis, just would the as a that becomes on some higher ITC which should open markets. around attractive I more adders, up per dollar pricing clarified, ITC allow should hour obviously, kilowatt Yes. commentary

So continue forward. that's to certainly something expect to our that going aperture we increase and monitor

Operator

Brian Goldman of comes line of Sachs. Lee the Our next from question

Brian Lee

implying, it little going keeping XQ a bit because and well it. at guidance. be it wanted customer follow for conservative, But those peers would dig have guidance. high it into sequential are up as the growth but peers I know, relative assume one and maybe if to intact, you to just end your you're I that as from reported to traded sounds mean, of way beat peers. at imply growth both well upsiding of or the to around guidance, look things the characterizing year-on-year your hearing you wanted full growth -- even commentary what for be publicly into slowing ahead you're your you're of the your adds just even even to I it, Peter, questions beat I I the fairly your year, when on just seem additions earlier some guidance you're both I the customer all that

So or have there anything that into is peers? of just a your what you mix the your year-end some versus in or putting different might position be in here wondering, you seasonality

Peter Faricy

No.

answer quick no. is think I the

don't this conservative. our a were this I we we've If anticipate It's peers And QX, our the slowdown. think I outgrown I we're I peers be But look imply at meant going to view, think, margin. -- We to market at I customer as what but from think peers. point of our our quite I a script, outgrown up And year. will said not take I I or gained healthy. particular by think for we've take year. our end in number, gained will any growth share We've we don't bit know of guidance quite above the quarter, that doing. a the in be large -- remain didn't the high

Brian Lee

Okay. Yes. a No, that's fair point.

You guys year. growth exceeding have peer throughout been the

just maybe or was it interesting robust so I not And XQ, to thought as going note that but reverse be that in to it's I'll take offline.

Peter Faricy

Brian, to give you some more color.

capacity. inputs down to comes of supply If you growth, installation and the a look at it take

continue in in to we're in And position continue both. installation to invest the grow business a an capacity QX. strongly from to heavily We standpoint, pretty

a a anticipate customer I And and view. the having are point so in of place good we from think there inputs quarter growth

Brian Lee

you Okay. the have how on well. I the guys input around obviously data mean, is well throughout that sounds point year to growth lease the capital. I inputs I companies guess It of done helpful. much then I And the from like chain. need saw there supply continuing bookings, perspective, PPA appreciate an guess space do That's one the in robust you all the there. you're

you leased with respect tax capacity, of or give think little sense dollars then to working you players bit worked whether it's equity of shift tax with in see to that And some with you're where megawatts? more more us Hannon can a you're historically, So I stand now you Armstrong, are that expanding the equity to product? going pool maybe PPA you and

Peter Faricy

to that Guthrie, you take do Yes. one? want

Guthrie Dundas

thanks. Yes,

elements the very business. lease other So supply good in capital feel our and tax we stack the of equity about of

solid We well Hannon other is customer and partner. financing. have fulfill are on ability needs into very capacity our feel obviously through our discussions and to And in about Armstrong to year strong a next increase the elements, that very

obviously, to work see major avenues. can changes explore continue although, now We them. all with there, And we

Operator

Our of the question of ROTH. comes Shen line next Philip from

Philip Shen

any have Peter, lead know you guidance business. given said, haven't guys I you a 'XX. relatively That long for

could And was our QX loan Historically, some segment. are Can made cash investments bit you've you share recently, and seeing how I up. about a segments expect those nice lease and the you versus Maybe if So wondering relates you also it talk to how you little you 'XX can shape made shift? in X. as or talk to loan -- business. about you've

that given loan suggests the the might be slowing rising the segment rate for environment. industry, work Our down

So you here. could lease is lease be great. you that I about versus would loan the cash But and your evolves, was growth 'XX how that wondering, highlighted talk overall if you think mix nice

Peter Faricy

Philip. Thanks, Yes.

for 'XX, at to guidance. try our pretty 'XX. the the on the give a a we'll purchase bit part I we to a I'll good early detailed of you you in upper give full at future look fuel. think guidance year, of look color. our year have little the of business, it's this take Obviously, we do provide But any So beginning next at as

going how with contracts leading at appointments forward. many a signed So And go have us. installations look and we I'm to indicators as customers leads, constantly raw we are who those of are taking

backlog. actually is remaining pretty but And is a indicators would summer. customers is begin through activity quarter another with The the to And year. The Retrofit our this slow considering other fourth for little both Homes best have But demand usually things and solar of given the how into pretty had describe quarter a we of in where think come usually upper of the end QX, I And bit. and to down, things and on are bookings fall, those strong course, QX peak strong is QX I indicator, New still down robust season time of for are going of kind the Homes. leading we by beginning quarter. funnel that next things QX slow backlog, fourth of leading look record

from energy customers of interested people to to Anytime getting are worried making So because here going them going a why because the them But can think difference solar this about to It's rational in kind then decisions proposition in really upon has much, of I powerful money that to prices continue we're I and you've really industry. I financed understand logic are we thrive, lease make world, cash a the standpoint, in continue a a somebody them chance of XX% save reports, you are they're going of think got I forward up we're that's line a XX% value save help slowing and it's about money. big harp and of it. lot their that's read about thinking issue sort how with why and cash. growth. And loan the so

Of similar is it to a on loan been really leases, value are seem realize that. business. recent than this lease. think XX% had financed up a the that's a trend many customers loan better the a metrics them it I Our that's year doing until it's rational And for because

that likelihood consumers. to for and increasing the become attractive with PPAs, part and more IRA much business the leases expect the do there'll incentives with be of However, to we that tied

to that us probably it's effectively. underrepresented area the think allow some of these and serve will underprivileged communities I

And a But it's lease think still that so with is it's really our probably and faster and we time. bit see lease probably and loan expectation in the growth short- loans medium-term slowing important. growing between little more balanced that we'll during down

IRA I be to a really good good example is think company able our important of why it's at X. to this really be for all

them consumers. to not they the that lifetime with with want make We're they from relationship us. that loan. over wonderful them lifetime the solar gouge and on relationship afford us so want products a help have to continue really We or experience to have purchase trying lease to We some

in lease our world-class competitive marketplace, we products loan and also continue want to we very SunPower Financial. loan So the friendly are through are the provider become but leasing they're and to consumer

Philip Shen

Great.

your year. and momentum. What about think with our us mix of You is could maybe then do you suggests also relationships was non-Maxeon was and prepared supply -- about Aptos kind in Maxeon module talked your remarks have you MORI I give for your U-Series next right now. the gaining if some think I modules? you maybe color work it between wondering

other vendors was help module that could so working have wondering look understand mix what with us that I you if if like? And you And might well? you're as

Peter Faricy

Yes. Thank Phil. you,

context, to you would your I love about So bit detail. in a of little talk let question me more give

this So earlier contract of with one Maxeon, change to of our parts year go back changed that if we one-way we when the important was the exclusivity.

for is continued suppliers. panel consumer from you worried we was you know and as the it to to ability panel panels already so were year. consumer exclusive Maxeon And see then the demand important other expand, reason about that serve production throughout are the and our that gave getting has enough demand to guys still can slides, SunPower but seek So SunPower,

than a suppliers to Maxeon that has I year. So not more job comment some give color, us And terrific contracts. in panels done that game from XX%-ish the Maxeon ability you are this this be us also changer was source fourth been installations panels. quarter, to that year a of panel our And supply other will will has having of giving in our

they to best us supply but can, been as globe. constrained a their the doing environment it's panel So across much they give as all have

our panel big makers difference other ability has very from year. to a source this So made

is changer. forward, going the encourage As to is panel to game really be invest think global I It U.S. look the to IRA you in going makers a

coming serve then had mentioned line both other the be probably interested panel in our Solar. with way. partnership. our expand Maxeon. to still a As work a working manufacturers premium can panels for brand our call makers and we where of in of in are to same to very in feel with love of the you relationship high-quality consumers, And that provide world. pleased very We'd to order makers a Mark, mass with large with And panel the know, negotiations I we we market. But serve that at Maxeon and we'll But us, we're number need addition really his and our supply Maxeon. we've across Maxeon with we're these we they're plus know, supply XX% panel position business large from if excited going a panels think us, going and what for X you have discussions beyond with to First take our the with on XXXX, SunPower in ability are on on other look

across last You see We're saw more may LONGi have seen globe. last announcement panel. end the week, late there efficiency interesting was announcements have week 'XX, like a beginning by they're about XX.X% to from going to of the that I this

And mix going ourselves position we're so we're the partners think in view. to in we couple point I to position in a our panel a now, put and position great a feel good to be from the positive like select really of in of

Operator

of next the Our Raymond from line comes of James. question Molchanov Pavel

Pavel Molchanov

mentioned ago that there loosening in chain. selling over if And a so. But last around PVinsights supply minute modules X decline that the of price actually pretty when make in seeing prices, the curious was maybe world. the some a a it shows supply You just down and data, weekly we perhaps look sharp what or XX% you weeks tight I'm of at you're

Peter Faricy

Department new supply the our panels basically earlier investigation. So the when was this of all world. remember year anywhere the stopped yes, That -- important I might there from think Commerce you around context perspective, of the from is

kind in panel for it mode of freeze a number the think I industry put of months.

strong market, see makers bit to the market for really I with guess, this becoming the it across going number fact a world, year, IRA giving it of panel is are announcements is growing how certainly more resolved are of And especially if plus was that beginning to here little more X-year residential U.S. that delay, the was going a bring domestic in strong content. the the see supply to really earlier that once -- think market. this a So I buyer's it panel seller's you're incentives now makers I a that is buyer's if was think a

attractive think some I I also and lead that may available there's more more think to options pricing.

Pavel Molchanov

question. Okay. chain supply And follow-up a

you're along part labor In installation States those terms there of any shortage availability labor partners, parts lines? on are of the or of your experiencing the where anything United

Peter Faricy

as much issue things It's regional difficult senior experienced X are a One not rapidly. -- and because necessarily more have we more as seen really hire installers that's an this industry is its the growing we've seen find and is not happening. to capacity always more

lead, So who have lot who just experience for crew of be a people example. are aren't a there ready to

working develop and industries, roles lead like then across costs. team So into strong think constantly crew working that's other promote constantly can a I issue And people do on how who build an that we're of on, and many hire U.S. labor the we we're we all

I to costs we've They're and not think so we're really our job those along successfully those challenges those And continue And challenges. able think challenges. I been costs more part focused challenges They're to But as prices. are rise. necessarily of the regional cost pass X then on that today. level

Operator

of line Suisse. comes Maheep question of from next Credit the Mandloi Our

Maheep Mandloi

that here question I growth on the One business on comments Suisse. the Maheep on the per profitability from leasing the just It's customer. in just Credit business. with curious appreciate IRA. But

investments leases you? EBITDA for origination of higher with loans does a Analyst things the that you loan in of that I Day mix versus talked about How getting profitability. was think one you to change

Peter Faricy

financial a lease if vehicles. is way Maheep, the our products to is best thought financial in So to that experience, loan. we want the about the make between want a to are and And that the really that's similar the we able products reason return a do way to a pricing be customer between you provide indifferent you important

don't loans people force figure choice, a them want all for really for factors that's really them. for -- for we You them. what's as the of into out And a unfavorable or that their situation contracts strongly ownership We tenant best leases vehicle. believe one that We them other we into or And are the best they to to and financial the other. force choose let company don't and our customer you own the home offering a their the offer choice. by of really permit them you consider, them the one

a the we way to both our be very on and a believe over where So be able but similar time. to to make return good we going forward price return both, on loans we will meant in leases is continue

Maheep Mandloi

just mix X last see in and think 'XX. slightly grew it's mix to a versus residential in but question Just from then that -- higher-margin That's should how second the trying is me product, just me fair. the -- quarters? And a on we about of quarter definitely the products

Peter Faricy

Sorry, asking. can you our me Tell just products. right what residential of clarify are that about now you're because more products all

Maheep Mandloi

residential systems. products of mix the No, versus

the versus So I with X the products shipments quarter in quarters? residential total in XX% think residential last -- shipments of XX% the

Peter Faricy

I Yes. see. I see.

bookings we we about beginning finance to our of increase had of and -- year, talked the goal it rate from our XX%. attach XX% the to a at think had this I

achieved XX% we or XX% bookings this As quarter mentioned, we attach rate.

uses to actually met So we X going to as than believe I a ramp that business or for. nearly earlier goal customers go from think of Financial. that all that we had as year we rate on be forward, until continue increasing all attach we're every go of each And and we either all the and every finance quarter we SunPower quarter planned our forward really

Day like. We're where Financial our to And continuing to by have a options more and loans all more like very attach to we're and that the a with continuing we expect dealers on build SunPower Analyst offer path product our is the about high states. across and we're leases consistent strong talked So XXXX. for we what rate customers at

Maheep Mandloi

it. Got Got it.

should business which that's So is sales the say should product, cash to right? grow systems shrink, fair,

Peter Faricy

think... I

Maheep Mandloi

[Indiscernible].

Peter Faricy

would cash it customer of sales, -- on cash sorry, I the driven what Yes, the by growth -- over all be that should yes, really time. really demand on depends say should

financial question. a -- got think United forward. very think will States I ticket most more forward, the are look still that lower. so the X get you. higher to time think decisions. go possible And more we I in in big big it I because U.S. adoption taking alone don't go for go XX%, people that comfortable We've solar anything, item begin If feel it's for financed, will as lease mass most you percent more it's it people the Thank a as as we of As

Operator

question next comes Blum Our Michael Fargo. of Wells from the line of

Michael Blum

in for here. me squeezing Thanks

to back Just rate have discussion. to quick those attach questions. battery wanted just few the I go

flattening You out mentioned least now. you're at of for kind here

times, to you right installation the be want main that's to more issue chain seems which Would industry now? or one of understand bottleneck Just the supply say for really a of main sticking is better. points that the

Peter Faricy

So on batteries, perspectives. two

think solar it owner expensive First the competitive of, the solutions of is other system. think of in all, are feedback terrific I already consumer which marketplace. proud storage I a the the product. It's we from are product to a pieces it's I'm itself the that with side, But of an a battery pretty get X adder the large

our costs $XX,XXX, $XX,XXX. are So battery for consumers $XX,XXX,

you get can $XX,XXX buy you If whole these yourself home batteries, up $XX,XXX. to or

So it's at a purchase pretty solar your right the system big adder of time. top on

attach the though unit the the that still batteries growing our we're quarter-over-quarter. sales of think I even So slowed today has cost rate,

they as continuing the then are work year good think forward, And next-generation believe installation you we're quite of our one end today actually generation could next things of on. looking think that will improve be to and should batteries look consumers. for fair a times in dealer feedback that able And battery good the that about guys is launching forward we be be. it at something and the our not price 'XX. XXXX, looking beginning of I bit not to sometime we points as the we're of they our that's is talk As on as next to forward to more to I the We'll and side, we're as

architect as we get to make list top efficiency very much our all of we're things. of this the right sure that we at installation the battery. new battery, think next-generation We're very we keeping as with were trying I

this questions guess, their the sharing of progress on to made outlook pledged improve year and to beginning our year. you and everyone would go solid of we the We results try and back, forward excited at financial delivering to time. consistent I Day We're the our we with to Analyst Okay. to want strong. thank of year out the again. quite Thanks. I where that today to for some continuing at you for their work there, to we're next results hard the beginning We've looking QX Thanks, company. finish

Operator

Thank participating. conference. this you today's conclude Ladies and gentlemen, does you. for all Thank

great disconnect. now Have may You day. a

Sunpower (SPWRQ) 8 Nov 222022 Q3 Earnings call transcript