SunPower Reports Second Quarter 2022 Results

  • Added a record 19,700 customers in the second quarter, a 51% increase YoY
  • Accelerated revenue growth to 63% YoY
  • Achieved backlog of 53,000 retrofit and new homes customers
  • Delivered strong gross margin: 20% GAAP, 21% non-GAAP
  • Announced strategic relationship with IKEA U.S. to reach new customers and simplify the solar buying experience

SunPower Corp. (NASDAQ:SPWR), a leading solar technology and energy services provider, today announced financial results for the second quarter, ending July 3, 2022.

“There is a ubiquitous need for reliable electricity at an affordable price that isn’t being met with our traditional energy sources,” said Peter Faricy, SunPower CEO. “With our strategic growth plan, investment in world-class customer experience and robust pipeline, SunPower is well positioned to capture the strong resulting demand for solar and storage. This quarter we added a record number of customers, including an all-time high for new homes installs, and accumulated a backlog that we expect to set us up for high growth in the second half of the year.”

SECOND QUARTER BUSINESS HIGHLIGHTS

SunPower continues to execute across its five strategic pillars to capture demand and cement its leadership position as the company delivering the most innovative ecosystem of home energy products with unmatched customer experience.

World-class customer experience

  1. Highest rated solar company: In the second quarter of 2022, SunPower remained the only 4+ star rated solar provider in the U.S. with an average review score of 4.3. SunPower’s Net Promoter Score improved to 51, a 38% improvement year-over-year (YoY).
  2. Improved time to resolution: The company continued its trend of significantly improving customer response speed. In the last quarter, it minimized wait times to 31 seconds, a 45% improvement YoY, and shortened the average time it takes to resolve a customer query by 36% YoY.

Best, most affordable products

  1. Significant progress on ground-breaking panel: SunPower and First Solar (NASDAQ: FSLR) are finalizing negotiations to develop the world’s most-advanced residential solar panels. The companies have agreed on the majority of key terms and are working toward definitive agreements. They are expected to sign a deal in the next quarter and promptly move forward to operationalize production.
  2. Increasing panel supply: SunPower secured additional product volume under their agreement with Maxeon Solar Technologies (NASDAQ: MAXN) for increased panel supply through the end of the year. Along with additional supply chain agreements, this further ensures the company’s ability to meet unprecedented demand.

Growth

  1. Joining forces with IKEA U.S.: In May, SunPower announced a new strategic relationship with IKEA U.S. to introduce solar and storage to a new consumer market and make renewable energy easier to access. Through the collaboration, SunPower home energy products will be featured in select IKEA stores, and members of IKEA’s customer loyalty program will be able to initiate their solar journey from the showroom floor. Home Solar with IKEA is expected to launch in select California markets in Fall 2022. 
  2. Driving growth in new homes: SunPower continues to stand out as an industry leader in new homes. It recorded a 46% increase YoY for contracted active solar-standard communities, with previously sold backlog growing to 34,0001 customers. This quarter, the company further expanded its category presence across the country: it solidified a multiyear national contract extension with KB Home (NYSE: KBH) and finalized a deal with Dream Finders Homes (NASDAQ: DFH) to build nearly 400 solar-standard homes across five communities in Colorado.

Digital innovation

  1. Completed significant monitoring upgrade: SunPower finalized a multiyear project to redesign its monitoring systems for a superior customer experience. The new system enables faster load times and activates features such as panel-level monitoring and alerts for customers and dealers. With the implementation, SunPower reduced maximum delay time between when panels measure power production and when that data is visible in the mySunPower app from one hour to less than two minutes. The new monitoring system is expected to save SunPower more than $4 million in annual operating costs by gaining efficiency and reducing third party vendor fees.

World-class financial solutions

  1. Grew financing product portfolio: SunPower Financial introduced several new offerings in the second quarter to help keep customers’ monthly payments low, including low-APR loans and expanded eligibility up to $150,000.

1Backlog calculated as of July 22, 2022.

In June, SunPower closed the sale of its Commercial & Industrial Solutions (CIS) business to TotalEnergies. Additionally in the second quarter, TotalEnergies and Global Infrastructure Partners (GIP) signed a deal where GIP is expected to acquire an approximate 50% interest in a new joint venture that will hold TotalEnergies’ 51% ownership in SunPower Corporation.

“This agreement is a strong signal from energy leaders and investors that accelerating the energy transition is an imperative and a powerful vote of confidence that SunPower is well suited to play a leading role in that change,” said Faricy. 

Financial Highlights

($ Millions, except percentages, residential
customers, and per-share data)
2nd Quarter 20221st Quarter 20222nd Quarter 2021
GAAP revenue from continuing operations$417.8$350.3$260.8
GAAP gross margin from continuing operations19.5 %20.6 %23.3 %
GAAP net income (loss) from continuing operations$(42.5)$(2.2)$87.1
GAAP net income (loss) from continuing operations
per diluted share
$(0.24)$(0.01)$0.46
Non-GAAP revenue from continuing operations1$414.1$336.1$254.1
Non-GAAP gross margin from continuing operations121.3 %21.7 %22.5 %
Non-GAAP net income (loss) from continuing operations1$5.2$2.9$12.1
Non-GAAP net income (loss) from continuing
operations per diluted share1
$0.03$0.02$0.07
Adjusted EBITDA1$15.2$11.2$22.4
Residential customers463,600443,800363,000
Cash2$206.4$142.3$209.8
 
The sale of our C&I Solutions business met the criteria for classification as “discontinued operations” in accordance with the guidance in ASC 205-20, Discontinued Operations, beginning the first quarter of fiscal 2022. For all periods presented, the financial results of C&I Solutions are excluded in the table above.
 
1Information about SunPower’s use of non-GAAP financial information, including a reconciliation to U.S. GAAP, is provided under “Use of Non-GAAP Financial Measures” below.
 
2Includes cash and cash equivalents, excluding restricted cash

2022 Financial Outlook
SunPower affirmed prior 2022 guidance of $2,000-$2,400 Adjusted EBITDA per customer and 73,000-80,000 incremental customers, resulting in $90-$110 million Adjusted EBITDA for the year.

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Source: SunPower

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