Sunrun Inc. (NASDAQ:RUN) Q4 2022 Earnings Conference Call February 22, 2023 4:30 PM ET

Company Participants

Patrick Jobin - Investor Relations

Mary Powell - Chief Executive Officer

Ed Fenster - Co-Founder and Co-Executive Chair

Danny Abajian - Chief Financial Officer

Conference Call Participants

Julien Dumoulin-Smith - Bank of America

James West - Evercore ISI

Brian Lee - Goldman Sachs

Phil Shen - ROTH

Kashy Harrison - Piper Sandler

Joseph Osha - Guggenheim Partners

Maheep Mandloi - Credit Suite

Biju Perincheril - Susquehanna

Steve Fleishman - Wolfe Research

Christine Cho - Barclays

Corinne Blanchard - Deutsche Bank

Abhi Sinha - Northland Financial

Colin Rusch - Oppenheimer

Patrick Jobin

Before we begin, please note that certain remarks we will make on this conference call constitute forward-looking statements. Although we believe these statements reflect our best judgment based on factors currently known to us, actual results may differ materially and adversely. Please refer to the company’s filings with the SEC for a more inclusive discussion of risks and other factors that may cause our actual results to differ from projections made in any forward-looking statements. Please also note that these statements are being made as of today and we disclaim any obligation to update or revise them.

On the call today are Mary Powell, Sunrun’s CEO; Ed Fenster, Sunrun’s Co-Founder and Co-Executive Chair; and Danny Abajian, Sunrun’s CFO.

And now, let me turn it over to Mary.

Mary Powell

Thank you, Patrick. I have really been looking forward to this call to share our strong fourth quarter and full year results with you as well as to talk about our outlook and priorities for 2023. We ended 2022 delivering and even modestly exceeding our guidance, growing new installations by over 25% and delivering greatly increased net subscriber values. We exited 2022 with nearly 800,000 customers, 5.7 gigawatts of network solar energy capacity and $5.6 billion in net earning assets.

I am confident 2023 will build on this strong momentum as the strength of our subscription model provides market share gains. The year is off to a great start. We are seeing early funnel sales growth in January of over 30% across our entire direct business and even faster growth in California. Part of this is expected acceleration ahead of the changes in California, but it is also indicative of the broader utility rate trends, which continue to rise and the growing consumer awareness of our offering. Our strong traction is also a result of our ability to attract the best sales talent in the industry that is eager to work with the nation’s leading clean energy provider, especially one that is leading on storage and innovation.