Sunnova Energy International Inc (NOVA) Reports Q3 2023 Financial Results
Sunnova added over 37,000 customers in Q3 2023, bringing total customer count to 386,200.
Revenue increased to $198.4 million for Q3 2023, up by $49.0 million from Q3 2022.
Net loss for Q3 2023 was $56.5 million, compared to a net loss of $32.3 million for Q3 2022.
Adjusted EBITDA for Q3 2023 was $40.4 million, slightly down from $41.3 million for Q3 2022.
On October 25, 2023, Sunnova Energy International Inc (NYSE:NOVA) released its financial results for the third quarter ended September 30, 2023. The company reported an increase in revenue and customer base, while also experiencing a higher net loss compared to the same period in 2022.
Financial Performance
Revenue for Q3 2023 increased to $198.4 million, up by $49.0 million from Q3 2022. This increase was primarily due to an increased number of solar energy systems in service, higher inventory sales revenue, and an increase in service revenue. However, the company incurred a net loss of $56.5 million for Q3 2023, compared to a net loss of $32.3 million for Q3 2022. This higher net loss was primarily due to an increase in interest expense and higher general and administrative expense.
Customer Growth and Liquidity
Sunnova added over 37,000 customers in Q3 2023, bringing the total customer count to 386,200. The company also took several actions to increase corporate liquidity, thereby lowering its forecasted 2024 corporate capital need from $500 million to $0. As of September 30, 2023, Sunnova had total cash of $725.1 million, including restricted and unrestricted cash.
Future Outlook
For the full year 2023, Sunnova reaffirmed its guidance for customer additions, Adjusted EBITDA, interest income from customer notes receivable, and principal proceeds from customer notes receivable. The company also initiated its 2024 full year guidance, expecting customer additions between 185,000 and 195,000, and Adjusted EBITDA between $350 million and $450 million.
CEO Commentary
William J. (John) Berger, the founder and CEO of Sunnova, commented on the company's performance,
Maintaining a strong focus on liquidity, increasing operating leverage and profitability, and growing cash flow remain the top objectives of management. As we navigate this higher interest rate and lower liquidity environment, it's essential to recognize the unique opportunity that arises from the convergence of declining solar equipment prices and the steady uptick in utility rates, creating a distinct wedge of value for our customers."
Financial Tables
The company's balance sheet shows total assets of $10.78 billion as of September 30, 2023, compared to $8.33 billion as of December 31, 2022. Total liabilities stood at $8.58 billion as of September 30, 2023, compared to $6.44 billion as of December 31, 2022. The company's total equity was $2.07 billion as of September 30, 2023, compared to $1.72 billion as of December 31, 2022.
The company's statement of operations shows a net loss of $267.6 million for the nine months ended September 30, 2023, compared to a net loss of $68.3 million for the same period in 2022. Adjusted EBITDA was $83.0 million for the nine months ended September 30, 2023, compared to $93.5 million for the same period in 2022.
Explore the complete 8-K earnings release (here) from Sunnova Energy International Inc for further details.
This article first appeared on GuruFocus.
