SunPower(US:SPWR)2022-05-06 00:43Financial Data and Key Metrics Changes - For Q1 2022, the company reported $11 million of adjusted EBITDA and $336 million of non-GAAP residential revenue, with a 40% year-over-year increase in new customers [15][16] - Residential gross margin remained at 23%, consistent with Q1 results from the previous year, despite higher panel, freight, and labor costs impacting results [16] - The adjusted EBITDA per customer before platform investment decreased to $1,700 for the quarter, influenced by increased spending on sales and marketing [16][20] Business Line Data and Key Metrics Changes - The company added 16,500 new customers in Q1 2022, a 40% increase year-over-year, supported by a 72% increase in gross lead appointments [15][16] - The SunPower direct channel experienced a 118% year-over-year growth, while the company set a new backlog record with 13,800 customers [7][15] - SunPower Financial achieved a 41% bookings attach rate in Q1, progressing towards a goal of 45% by year-end [8][19] Market Data and Key Metrics Changes - The company reported strong demand across all sales channels, with significant growth in Texas, Florida, and the Northeast, indicating a shift from a California-centric business model [32][76] - The company is expanding its dealer network, adding 83 new dealers, and has partnerships with five of the top 20 U.S. homebuilders [8][10] Company Strategy and Development Direction - The company is focused on executing a five-pillar strategy to become a leading renewable energy company, emphasizing customer experience, product innovation, and market expansion [7][11] - A new dealer accelerator program was launched to support dealer growth and territorial expansion, which is seen as a critical component of the company's market share growth strategy [9][36] - The company is in discussions with First Solar to develop high-efficiency tandem thin film and polysilicon modules, aiming to enhance its product offerings [8][9] Management's Comments on Operating Environment and Future Outlook - Management noted that rising supply chain costs have not led to price increases for dealers and customers in 2021, allowing the company to pass along cost increases in 2022 without hurting demand [13][29] - The company expects to achieve its guidance of 73,000 to 80,000 customers by year-end, driven by strong customer demand and backlog [15][17] - Management expressed confidence in meeting guidance despite challenges in panel supply due to the Department of Commerce investigation, stating that the main panel supplier is not involved [14][62] Other Important Information - The company closed a new residential lease and PPA fund, which will support demand and improve customer affordability [21] - The company is actively working to improve customer experience, with a Net Promoter Score increase from 35% to 49% year-over-year [11] Q&A Session Summary Question: Challenges of using thin film technology - Management expressed excitement about the potential partnership with First Solar, highlighting the unique efficiency of tandem products combining silicon and thin film technologies [24][25] Question: Impact of rising interest rates on customer preferences - Management noted no significant changes in customer preferences, with strong growth in all financing options, particularly loans [26][27] Question: Price increase strategy - Management indicated that they can pass along cost increases to customers without negatively impacting demand, which has actually accelerated [29][30] Question: Update on EV charging partnership - Management highlighted the strong overlap between EV owners and solar customers, indicating a positive outlook for the EV charging opportunity [54] Question: Module availability and supply chain issues - Management reassured that they have sufficient panel supply to meet customer demand and guidance, despite some tightness in the market [60][62] Question: Future of the First Solar deal - Management expects discussions with First Solar to conclude in the next couple of quarters, with no significant gating factors anticipated [68][69]