Sunrun Inc (RUN) Reports Q3 2023 Financial Results: Storage Capacity Installed Grows by 131% YoY
Sunrun Inc (NASDAQ:RUN) reports a 131% YoY growth in Storage Capacity Installed, with recent storage attachment rates exceeding 40% nationally on new sales.
The company's Net Subscriber Value was $11,030 in Q3 2023, with a pro-forma value of $14,793 considering full ITC adder and lower current equipment prices.
Net Earning Assets increased by $130 million, reaching $4.6 billion, including a $31 million increase in Total Cash compared to Q2.
Sunrun Inc (NASDAQ:RUN) is transitioning to a storage-first company, lowering full-year growth guidance for Solar Capacity Installed.
On November 1, 2023, Sunrun Inc (NASDAQ:RUN), the leading provider of residential solar, storage, and energy services, announced its financial results for the quarter ending September 30, 2023. The company reported a 131% year-over-year growth in Storage Capacity Installed, with storage attachment rates surging to 33% of installations. Recent storage attachment rates have exceeded 40% nationally on new sales. The company's Solar Energy Capacity Installed reached 258.2 Megawatts in Q3, contributing to a total of 6.5 Gigawatts of Networked Solar Energy Capacity.
Financial Highlights
The company's Net Subscriber Value was $11,030 in Q3. However, considering the full ITC adder and lower current equipment prices, the pro-forma Net Subscriber Value was $14,793 in Q3. Net Earning Assets increased by $130 million, reaching $4.6 billion, including a $31 million increase in Total Cash compared to Q2.
Transition to a Storage-First Company
Sunrun Inc (NASDAQ:RUN) is transitioning to a storage-first company to offer the most pro-consumer product, expand margins, and lay the foundation for increased value streams from its growing fleet of networked storage systems. This transition has led the company to lower its full-year growth guidance for Solar Capacity Installed.
Third Quarter Updates
Storage attachment rates accelerated to over 33% in Q3, nearly double the rate in Q2, with 176 Megawatt hours installed during the quarter. Sunrun has now installed more than 76,000 solar and storage systems, representing over 1.1 Gigawatt hours of stored energy capacity.
Key Operating Metrics
In Q3 2023, Customer Additions were 33,806, including 29,303 Subscriber Additions. As of September 30, 2023, Sunrun had 903,270 Customers, including 754,087 Subscribers. Customers grew 19% in the third quarter of 2023 compared to the third quarter of 2022.
Outlook
Sunrun is focusing on cash generation and executing a customer-first, sustainable growth strategy that does not require equity funding. As a result, the company is dramatically increasing installations of storage systems, which provides for increased margins and value creation opportunities over time.
Explore the complete 8-K earnings release (here) from Sunrun Inc for further details.
This article first appeared on GuruFocus.
