Sunnova Energy International Inc. (NYSE:NOVA) Q2 2022 Earnings Conference Call July 28, 2022 8:00 AM ET
Company Participants
Rodney McMahan - Vice President, Investor Relations
John Berger - Chairman & Chief Executive Officer
Robert Lane - Executive Vice President & Chief Financial Officer.
Conference Call Participants
Mark Strouse - JPMorgan
Philip Shen - ROTH Capital
Julien Dumoulin-Smith - Bank of America
Maheep Mandloi - Credit Suisse
Ben Kallo - Baird
Sophie Karp - KeyBanc
Pavel Molchanov - Raymond James
Sean Morgan – Evercore
David Peters – Wolfe Research
Abhishek Sinha - Northland
Praneeth Satish - Wells Fargo
Antoine Aurimond - Bank of America
Operator
Good morning, and welcome to Sunnova's Second Quarter 2022 Earnings Conference Call. Today’s call is being recorded. And we have allocated an hour for prepared remarks and questions-and- answers.
At this time, I would now like to turn the conference over to Rodney McMahan, Vice President, Investor Relations of Sunnova. Thank you. Please go ahead, sir.
Rodney McMahan
Thank you, operator. Before we begin, please note during today's call we will make forward-looking statements that are subject to various risks and uncertainties that are described in our slide presentation, earnings press release, and our 2021 Form 10-K. Please see those documents for additional information regarding those factors that may affect these forward-looking statements. Also, we will reference certain non-GAAP measures during today's call. Please refer to the appendix of our presentation, as well as the earnings press release for the appropriate GAAP to non-GAAP reconciliations and cautionary disclosures.
On the call today are John Berger, Sunnova's Chairman and Chief Executive Officer and Robert Lane, Executive Vice President and Chief Financial Officer.
I will now turn the call over to John.
John Berger
Good morning and thank you for joining us. Sunnova delivered solid second quarter results as we delivered where it counts the most. Growth was strong in revenue and adjusted EBITDA. We grew our quarterly fully burdened unlevered return by 50 basis points from the prior quarter. And we increased our net contracted customer value or NCCV during what is typically a light quarter for NCCV growth.
Additionally, we saw both our adjusted operating expense on a per customer basis and our customer default and delinquency rates decline. However, we did fall short of our expectations in customer additions, primarily due to delays in receiving permission to operate or PTO from some utilities that we believe were stressed due to high industry growth. We also collected less than expected unscheduled principal payments on our solar loans, as the economic recession and the sudden spike in mortgage rates led to a significant decline in mortgage and mortgage refinancing activities.