Sunnova(US:NOVA)2021-03-01 07:21Financial Data and Key Metrics Changes - Sunnova reported a year-over-year revenue increase of 22% and adjusted EBITDA growth of 23% for 2020 [22] - The net contracted customer value (NCCV) rose from $1.2 billion at the end of 2019 to $1.7 billion at the end of 2020, translating to approximately $17 per share, a 20% increase year-over-year [17][18] - The company raised over $2 billion in new financing in 2020, including $800 million in securitizations and $415 million in tax equity funds [23] Business Line Data and Key Metrics Changes - Sunnova added approximately 29,000 customers in 2020, a 57% increase from 2019, driven by a significant expansion of its dealer network [10] - The storage penetration rate nearly tripled in 2020 to 9.2%, with expectations to reach mid to upper teens by the end of 2021 [14] - The company performed over 1,100 battery retrofits, an increase of 226 from the previous quarter [12] Market Data and Key Metrics Changes - The company experienced record customer growth in Q4 2020, adding more customers than any other quarter in its history [8] - There was a notable increase in demand for storage solutions, particularly in markets affected by recent natural disasters, such as Texas [71][87] Company Strategy and Development Direction - Sunnova's acquisition of SunStreet aims to significantly increase customer growth and reduce costs per customer while positioning the company as a leader in the development of microgrids [50][51] - The company plans to scale its operations to deliver grid services and develop community microgrids, enhancing energy savings and resilience [54][56] - Sunnova is focused on optimizing recurring operational cash flow through exceptional customer growth and declining costs [9] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving 2021 targets, citing strong visibility with approximately 82% of targeted revenue already contracted [45] - The company anticipates a 75% increase in adjusted EBITDA for 2022 compared to 2021, driven by the SunStreet acquisition and upselling opportunities [44][40] - Management noted that the transition to distributed solar and energy storage technologies is a significant trend, with Sunnova positioned at the forefront [58][62] Other Important Information - Sunnova's adjusted operating expense per customer declined by nearly 10% in 2020, with expectations for a further 25% reduction by 2022 [47][48] - The company plans to spend approximately $30 million on integration and transaction costs related to the SunStreet acquisition over 2021 and 2022 [42] Q&A Session Summary Question: What is driving the increased customer growth guidance for 2021? - Management attributed the growth to a significant increase in dealer and subdealer additions, as well as the introduction of new technologies [66] Question: Can you provide insights on the recent dealer additions? - The dealer additions were a mix of large, mid-sized, and smaller dealers, with significant growth observed primarily in the West [70] Question: What impact do you expect from the 2017 ABS refinancing? - Management expects to see improved cash flow and a reduction in interest rates from the refinancing, potentially enhancing shareholder value [75] Question: How do you see storage trends evolving in the next quarters? - Management anticipates a significant increase in storage attachment rates, driven by heightened consumer demand following recent events in Texas [78] Question: What are the expectations for NCCV growth post-SunStreet acquisition? - Management expects to see an increase in NCCV driven by upsell opportunities from the new customer base acquired through SunStreet [88]