Sunrun (RUN)

Patrick Jobin IR
Lynn Jurich Co-Founder and CEO
Bob Komin CFO
Ed Fenster Co-Founder and Executive Chairman
Brian Lee Goldman Sachs
Michael Weinstein Credit Suisse
Joe Osha JMP Securities
Eric Lee Bank of America
Sophie Karp KeyBanc
Philip Shen ROTH Capital Partner
Colin Rusch Oppenheimer
Call transcript
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Good afternoon, ladies and gentlemen, and welcome to the Q3 2019 Sunrun Inc. Earnings Conference Call. [Operator Instructions]

I would now like to turn the conference over to your host, Mr. Patrick Jobin with Investor Relations. ahead. go Please

Patrick Jobin

and for operator, to on those Thank us thank today. call joining the you, you

Before please statements. on this we will conference we begin, call note that constitute forward-looking remarks certain make

best Although these known us, results we actual adversely. on differ and statements our to materially believe may factors judgment reflect currently based

statements. results with in to and may that to other filings for also to from them. more made the Please actual projections differ refer forward-looking statements or update and Please made company's inclusive these a any factors of cause SEC revise as obligation the we are discussion risks note, our of any disclaim being today,

call which Komin, The our Executive the and Chairman. investors.sunrun.com. are and are Co-Founder website today at Co-Founder Sunrun's CEO; Sunrun's use will available and On presentation Bob on slides, Lynn Ed today Jurich, CFO; Fenster, Sunrun's

the turn to me let now call over And Lynn.

Lynn Jurich

Patrick. Thanks

our progress We quarter results are and Sunrun's third pleased strategic priorities. to against share

year, $XXX track on to are this growth. We about generation deliver of XX% year-over-year million which cash represents

We adding in well now expect XXX,XXX. customer our over again over approaching base by industry and growing customers XXXX XX,XXX lead the to XX%,

both near-term expecting due in we customer than our installation were and growth sales shortages labor The to is force. lower

strong batteries and generation. increasing orders continued of in strength the However, blackouts value and proposition makes XX% XX% cash the new long-term with in customers from to forced a confident us growth rate

to remains demand. of we deployments, have We costs. year-over-year this actively quarter, the strong interest X% generated representing and in we just our In to a million increase are low achieved cash added megawatts XX,XXX and and capital capacity working XXX guidance $XX meet within over Consumer increase record our range. customers

in We QX. quarter-over-quarter X% expect to grow

are increasingly facing across unreliable service. and Households the electricity expensive country

that the Investing inefficient risk are California will to lines a fires is PG&E infrastructure last normal and decade. sustainable. they not lower start centralized and in the blackouts transmission equipment new in with forcing saying blackouts Forced

their resilient system the store helping decentralized Brightbox generate are the services together to affordable customers The grid offers build in Family and we our multiple eager homeowners to those lock average hours. world. lights to for own networking the entire service, customer our through able are California the keep energy recent Sunrun Hundreds we're in power during were is for services of on outages. Sunrun achieve way best outages to warming facing and ability power The a resiliency. system affected efforts. with these provide to XX

The for like are family hours, Area, they for rate Brightbox, Brightbox in orders the without October. we the run to the with and new approximately refrigerator critical In loads attachment stories moving. of heard days six straight XX% lighting XXX Bay doubled able One nearly interruption. straight nearly to were power lock

they expensive, backup if noisy is fuel are solution, our the say require need not refilling maintenance. some may which only pollute, station inferior. and also and are are They generators constant While far be possible down,

have can now our sun needs service the Brightbox XX% for direct only providing have far, across we're in XX% power nine Brightbox thus we while than is systems. and outages. for approaching multi-day when Brightbox XX homes' through through business geographies. in ,QX rate we approximately all Attachment throughout California launched sales states, in was attachment shining recharge installed and critical the night can power the Nationally, hours more X,XXX about

to continues strong. demand Overall be

into growth consistent QX industry in long-term orders which XX% are on and our QX, with in growth seeing to We XX% approximately rates. is views

expectations, facing by our trending is our tight demand to and in are we constraints with install ability a in exacerbated market. meet sales line While demand labor

following trends, some labor of and which unemployment tight rebuilding is all market, strongest at the largest fires. our are construction with California, especially record the in example, rates seeing growth For is lows the

positions XXX our over working in We and fill sales installation organization. are actively to

Sunrun from can smaller the national the us for our companies. given and I'm can confident and of packages growth solar and We the believe career challenges differentiate the address we best opportunities next along benefits on localized benefit preferred labor over can a mobility quarters. be scale provides. the with progression employer career are among couple

We are financial strong returns. focused delivering on

We XX%. $XXX are excuse on generate year, which this of track growth represents of to cash growth me, million XX%, flow generates which of

growth with further through in advanced cost is base, continued This our offerings combined financing California, grid service environment. reductions a customer repeatable and resiliency strong in offerings,

We call and about our next share we'll guidance XXXX, excited QX official on are early year.

next detail. I'll review discuss QX and now more quarter's over performance to the in Bob to turn guidance to call

Bob Komin

Thanks Lynn.

approximately in NPV high-value quarter year. $X unchanged would above $X.XX is California. markets third quarter, had not and higher have it about install in the particularly NPV Year-to-date watt. NPV in per and for flagging was from been been like last or the sales $X,XXX customer, per growth, $X.XX

$X.XX We expect $XX,XXX Project NPV QX. to in customer, in per or per approximately watt above be $X value QX. was

sensitive is and mix. As geographic modest very changes fund to value channel a equity reminder, in tax project

Turning $X.XX now $X.XX from to per costs Slide quarter. last per or approximately or total X% QX, $XX,XXX were an In watt, creation on costs creation customer, X. improvement of

project with costs value, creation can fluctuate As quarter. to quarter

our is channel reminder, business. directly because a As cost comparable our to partner those stack not appears of

of quarter. includes - for per for by year-over-year partners, watt X% last $X.XX costs Built project for cost built as the from by per a which by $X.XX installation Sunrun Installed channel improved a incurred watt. solar was Sunrun costs deployed systems $X.XX $X.XX Blended systems improvement installation well to per percent, as watt, our costs X%

$X.XX $X.XX In per up QX, QX. from our marketing sales and were costs watt

time a $X.XX G&A be from Sunrun of at watt. costs cost and per installation higher due dividing per in will and cost A direct systems of sales higher $X.XX reported sales the per watt, it an of deployed. but means unit marketing mix megawatts improvement over to calculated also total business costs per higher by period blended In QX. the watt lower are by results Our watt, Built cost there in lower mix total QX, were marketing costs

well and costs, we calculate Finally, generation lead we GAAP services. from sell gross when distribution with for includes margin subtract businesses realized the contribution or third-party cash solar creation systems as racking our loan. our as platform This we

Our was $X.XX In in per we higher $X.XX third last QX, XXX quarter, watt gross quarter. megawatt. deployed platform the margin than services

Our third-party loan QX, was cash recent with levels. mix and XX% in in line

We expect the in continue this to mix high teens.

ended cash to now we Quarterly balance Turning million. sheet, total our cash. $XXX million was with third in the generation $XX quarter

to cash generation activities. debt. $XXX in our Cash finance We the timing project of in XXXX. recourse cash We the generation due continue fluctuate can in million expect change to cash generation less change as define of total the significantly

more later reminder, opportunities related ITC in Ed strategic will call. a exclude safe cash plans safe detail undertake. we our generation will As harboring our harbor and activities, in the which discuss

to also We two corporate want finance updates. share

Rate maturity First, extend and flexibility. we working facility, only unchanged. April to size amended our capital enhance its to facility credit XXXX were our to and recourse

Board up Second, authorized to repurchase three-year our has share a $XX million program.

to continue equity cash strategy program we harbor view have now safe in this value. to we generate light an as place, and create tool As shareholder another

Moving QX. XXX XXX expect deploy between on in to Slide guidance to X, megawatts megawatts and we on

of for of our front NPV more market As increasing pressure on dynamics and a portion are more mix, capacity. tight business larger The loaded and our represents cash sales labor expenses these loaded generation. front direct and deployment a put expenses

cash XXXX. we expect the still strong generate in to million financing given $XXX environment, this, Despite of

per and to to levels. We prior watt XXXX expect for be be NPV QX year in above near $X

over Now let turn it me to Ed.

Ed Fenster

Thanks Bob.

our credit focus activities. investment have on costs strategy. and capital I tax I'll our lots generation, of good raising earning across harbor to Today plan safe capital share We activities market also news recent our cash to net implied review capital all of capital assets runway. and

an We demonstrating priced as advance X.XX% solar for company. set a rate the to new costs agencies In October, the finance execution with Low our for and ratings at both tailwind $XXX senior assets. solar and advance interest as high records residential with the of market again we strong rates well industry-leading securitization assets strong and our million rate the increasingly performance. notes capital continued provide once quality recognize that XX% of

however, The in subordinated XXXX. the to October's two for significantly well. year, XXX was similar basis credit single rate rating. higher, was yield to in and X senior increase we structure A points debt that that percentage and a December lower depth achieved in advance points transaction securitizations, was Comparing A minus the this closed we of rather investors continues as one than

a discount rate, market contracted credit during addition, a at rating asset we the we the BB debt on than raise In debt outside us stage QX. XX% of close value X% more of a achieved in expect from to advance transaction for additional subordinated ABS cumulative a with XXX% setting to tranche rate an

assets measure our values higher facts these market. value current market business in discount and our X% labor our high. addition, is put too rather present year-to-date trajectory X% a customer a for lay our $X.XX per To rate constraints context, to be in watt that now rate would if than net discount we one, approximately a X% growth unlevered development using In

tax Next harbor strategy. safe I preview like to would investment credit our

While business codified Safe the availing environment, ourselves tax credit we provisions, also thrive Harbor our we the are a to are to levels. access IRS planning extend for in higher to ITC lower

on because cost a XX% to in the incurring expect of we by for of projects the more tax these about than of to non-recourse basis. the of projects The We debt majority costs. megawatts expect extend credit XXXX finance XXX access X% vast these

XX, We the against capital equity in deployed strategy. December timing of million actual No, equity, vary based exact it XXXX this of about on the initially capital carry payments expect may capital and to amount costs. in $XX exactly cash

The a credit multi-year as anticipate we facility. facility, revolving closing

can ITC safe to elect harbor further equipment XX% during it at to or future we such, XX% As add years levels. to

in we or ability that solar We extend levels through the on from service. credit PPA tax exists December residential systems for higher to tax This call only credit or to projects 'XX access tax are a investment lease lease benefit expect becoming subject least credit as XXXX. our a XX% relevant solar what with XX% to permanent at to

approximately service a as rate our run Solar represents XX% of business.

years, in next for therefore future all and law, years. service a with systems XXXX a cost year enjoy in change or XX% next of to a cost cash favor loan. of purchased competitive at structural will service in XX% X% Absent a of all substantial and will at as advantage versus as begin This XXXX solar climbed and solar subsequent advantage cost for a of year in settle about

climate a advantage change. also renewable is from because energy combat permanent and for a purchase homeowner tax growing solar We're systems extending to policy pleased under are service it opportunity XX% the actionable Washington not. impact monitoring coalition perpetual The credits environment in benefits single highest they as a XX% tax are do credit report, supportive as while and law, the to

the with card especially chance increasingly any time is its moment extension. eventual specific passage handicapping the We're However, in in for wild difficult. impeachment, nevertheless of optimistic

$X.X Moving Cash Sunrun the total increased to flows $XXX to XX, and way assets finance to unlevered shareholders Slide $XXX cash X% to of counterparties. year-over-year to at net less assets payments recourse both earning measured Net million year-over-year. billion. discount describe rate earning debt is our cash after quarter-over-quarter million, value was increased

each our finally pipeline, fourth our and runway XXXX. the extend into of to quarter debt Turning project tax equity

With over call to that, I'll turn the back Lynn.

Lynn Jurich

Ed. Thanks

that, for questions, With open the line let's please.


Sachs. first is question Please of line Goldman Brian with Instructions] Our go sir. from ahead, Lee [Operator the

Brian Lee

provide a off, funnel. of labor the around I context bit to sales the maybe first and issue guess, little

sense can sort quarter you cycle target today this in I quarter also I window? a bookings And you you XX-day mentioned of you at above of to think bookings a outside that XX-day growth, time were And they've give how times then if growth us can then saw follow-up. last seeing XX% the moved had on around? of you comment much

Lynn Jurich


are So, at we to yes, persist that XX% the QX to for for Brian, orders expect QX. and XX%

scale, horizon, you be XXX quickly types this look up if so a sustaining it's rates. time difficult and described those at behind again, especially have multi-quarter market proven catch install on after focusing growth today. we of So, we And we're to to we over tight, position our as open fell last quarter, in and any efficiency,

to again really if and you that's the your on want you the expectations key pushed we're at approaching that just with with and are they any of with there mitigate communicate sort the look times right I really that how upfront concerns that is, being out. helps them. customers think, And So, cycle you

Brian Lee

is of out, XX-day just that XX-day to moving within on it you maybe window? pushing Well, instances inferring Lynn outside out that Or about clarify in you're XX-day some that comment the actually pushing window? to sort

Lynn Jurich

into pushed QX. be and Some built backlog will

QX able from QX. to the So in at is you growth you're QX going being if see X% growth, some it's to backlog to be QX, so strong still look still realized rate quarter-over-quarter, but

Brian Lee

kind segue then I'll into And guess of on. and question, I pass that's my then a second it

would from issues most volumes you labor do weather deployment over think something megawatts But the XXX that is have on but I do the they're to people it look appreciate expecting that So that just obviously, guidance are control, can the with hitting but for I QX. if here imply you deployment capacity ahead weaker. people into year, keeping the targets we guess most you do a strong seasonally are fourth based QX, quarter quarter you into be can't

the year? of a are now trying things next lessen sense labor funnel impacting to down the seasonally? you're then of a early you then you've strong just the those does part slow in period is, some capacity, just how maybe, issues question is of get because But sales And into ramped as the naturally of of And year much seasonally strong. that up

the maybe you to so start see to some And it sales naturally by it, helped install slowness? really seasonal and do lag,

Lynn Jurich


taking, do catch we're may actions within hiring that's marketing the to tight, packages of making taking, a retention opportunities which the up lot combination expect a If have. quarters. outside, inside making we of that well, of characterize and sure recruiters really you that our And you are we're couple are the sure actions we're suspect and a we and brand employment career compensation around

with at came last issue quarter. in our we quarter, time, - reasonable to a this feel can it scales hard up. catch is and up in it again period do we any so confident of But And

we little seeing just labor The leveraging other is thing is to well. Yes, model. advantages so also a we're model multi-channel this of third-party that we have are business our the leveraging, and one tightness do as

imagine, third have us our network gives bit you we more So market little a existing we that can but They this flex as with are can in relationships also and parties. constrained flex. it

will So well QX we and shape. I think be characterized you in into good it getting think


And your Credit Michael go next of ahead. question is line with Please from Weinstein the Suisse.

Michael Weinstein

ABS you'd as you this the rate actually the outcome Ed, mentioned based of possible refinancings, discount on if many legitimate presentations just to point. at So, a deploy X% plan future I'm new that wondering

Ed Fenster

That's a great question, Michael.

to rate. are we We mind less conditions to are revisit market actually change discount if the always currently we X% likely the materially, may mark of that Certainly, vary that.

capital cash in we're focus below meeting focused cost well. market the significantly certainly experienced hoping and as and X%, targets investors However, the and sorts are I also think principally to there generating of on those

Michael Weinstein

Also on somewhere have I cash can might you safe considering harbor that little $XXX now bit cash you around require I that especially comment goal of million think generation, calculate? a a

Ed Fenster

Michael. Hi,

it's So again. Edward

describe this bit. So in my we a section, little

of and for be or in million. payments capital of exact equity strategy on busy less more it facility, harbor deployed will be It's about the at expect a of outflows the the that time December We because inflows be based could year us. out XX against safe $XX to exactly possible and

do here equipment in But have facility we close to safe program. that of in - support are expect a finance the purchasing we significantly quarter high do that we to harbor the LTV

Lynn Jurich

So maybe might to to address - or I that. that add

specific that that us So as so of just and target it this target historically, repeatable would a the we annually. is - would And believe then $XX that's show exclude of line. generation add $XXX that million, terms $XX million described a repeatable we you in investment, for that cash million we've back

Michael Weinstein

And changed I targets was, the targets just one X,XXX customers, the going for and and question hit believe if forward? this deal, last it about Well, great. does December wondering that's QX Comcast the you

Lynn Jurich

not We warrant the expect reach contract. of to equity the do piece Comcast

we core discussing As there seeing deemphasized really in development we've that a just demand lots attractive we're it, of they really really pushed sort their been business, as that competitive previous own have of siloed so haven't reasons And think program. quarters, for been in we it's are channels. their operating - acquisition into business

installations you wouldn't material to going as that I doesn't forward. will it see of So, expect not amount and any represent see that

Michael Weinstein

Thank Okay. very much. you

Lynn Jurich

from We wouldn't any agreement. expect dilution that


comes And of Osha go with your question the Please from line ahead. Joe next Securities. JMP

Joe Osha

couple of a questions. are There

First, capital sense Can harbor not could to too the what the I the us you to beat safe as is to hear much, equity horse XXX give capital deployment be a number? to gross cover that going megawatts?

Ed Fenster

Fair Joe, question. it's Ed.

for projects prong. X% We all are satisfying going requirement harbor the the to safe be using

a on facility call. in be different of and including around describing methods financing next the doing expect will details that our We to variety that be the

Lynn Jurich

away XXX megawatts, on asset. - average - could And you the the track back you could with

Joe Osha

And be as using part might physical work standard of the you guys that?

Ed Fenster

not any physical anticipate do work using We standard.

Joe Osha

Second sort you that are the follow and about the - pre-flip the fourth same I Is of like seems debt XXXX, the profile sort then quarter when of a settling question kind I of over into post-flip of guys in subordinated of in year? expect can up plus course a the transactions think quarter, cadence. second

Ed Fenster

Joe. question, Great

can or call. Whether absolutely So undecided, XXXX And talk would year, point, next I and that do pre-flip about next this we so we to another I on with the wouldn't been more approximately that or a not year. both multi-year guarantee want post-flip probably period, that refinancing two have and year at And transactions such over would the we is do this to again, transactions. active we case. XXXX be expect

Joe Osha

all last through but question, some with scale, - sort utility guess going CCA I solicitation, sources some guys saw of And the flow storage right. you meter that Bay some to suspect Area CPUC of there's Cool. sort you might behind firming? I All last CCA's as well. come this about then out And to is - talking big then which is

how the are revenue services of grid just the here all you the context state. this in wondering So thinking guys opportunity I'm chaos of about for in

Ed Fenster

great Joe, Yes, that's a question.

CCAs that mission the is bankruptcy actually that think in PG&E the of delivery headlines their into the to of it obviously that are and renewables part distracted resiliency. and role is just a are stepping potentially part by leadership I think not situation is and in I and political a of And in. about sort both they do, thinking of

also for so there and which opportunities storage, be both will solar CCAs solar is work And but increasing obviously think with do for plus we related. purposes, regular to resiliency on capacity, just

on of and but expect discussions late, so would are made more we announcements coming about any the that haven't potentially there talk there over be And to that. underway, I will year

Lynn Jurich

I would here. the product. say, we're to to same services partnerships we the and work we Brightbox I the service leveraging approach which Oakland, then to Brightboxes think and the sure at quarter. And let's can. just for with the just - course a One program Oakland talked last direct and deliver contribute consumers go announced they pursuing those and the and a the about is actually benefit all have of two-pronged the of And with services we're up make regulatory assets time everybody all the that setting valuing superior

to way traditional the centralized of know, you we to consumer parallel, least can't anymore. expect IOUs that us and to things. lot direct and friction, doing can of So We increased you are the get the route going that as the more than you fast cost we footprint our effective a CCAs services provide the that ignore get probably is then


Bank And line Lee the with Please America. your of question go ahead. next comes Eric from of

Eric Lee

in to you headwinds efforts just expectations a me? a impacting specific full around and Could into about 'XX hear to talk Thanks. XX-plus we question year growth Should clarify normalization mitigate beyond. you about think again? I for Can just should - I that NPV are you guidance? you maybe into could $X.XX as quick mean XXXX talked about how So we towards NPV around know, And and XX% growth XX% well. expect bit the

Lynn Jurich

we question. QX why and would in to described, don't any subside. rate the - QX. is XX% the that see growth We We as the Great and XX% orders, reason

in formal any give to stage. the position XXXX this in not at next That are will guidance call. be We

my expect will the it overnight all we by we in and question, see to then. And for Brian's so of so couple think caught so a backlog answer we putting place be but - tackling that's but into piggybacking have we on wasn't the caught we're improvement, blocking capacity, we'll and that be make of directionally quarters should into up we some up, QX, sure

Eric Lee

of... could about the And talk you NPV in terms expectations

Lynn Jurich

Sure, sure. Yes. NPV. Yes. right. All

quarter of is So NPV the depressed because that mismatch. this

So to would see expect deliver growth normalize so that in as we to and going the above $X, historical we $X you're it it above would QX, those rates. into start

Eric Lee

believe clarify comment guys if you year you And just XXXX's watt know Bob, made you a I year NPV XXXX again you full but guidance. $X NPV? a on full towards out a could per about put plus, could clarify, I

Bob Komin


the approach is So official the the overall I would it comment NPV year. said for year think thought above was we've full - $X we full is And I near that last my guidance. for year's

Eric Lee

before me on. backlog it of for talk question retail drivers etc.? last one about Could you from just briefly I you. Thank partnerships, be homebuilder pass that And growth, it

Lynn Jurich

It's our across all Sure. really channels. acquisition been of

a we're our multi-channel - advantages. it's It's one competitive business. of So

retail our across channel partners. digital our it's presence, referrals, marketing, our So customer our

homebuilders installed the calls, a it's sale our on this because installed a it build, meaningful multiple normalize said And not a megawatts solar, it the as or the makes or but new people, exposed size new to at it's policy it and of home, even more is bookings I've stage. slower meaningful

versus this So moved nothing meaningful quarter around previous one.


question with next - line question Please KeyBanc. comes ahead. Karp go from and your the Sophie next of your And

Sophie Karp

are - gives ways where now confidence right you you you something to Just like and the a that are what Obviously, what you at to the start buyback the new company? question on something share program. that's you that's makes that

Ed Fenster

it's Ed. So,

the harbor in equity the included come it. we've been up and side had the calls, past have I have buyback the for around some time. we about that execute a that capital uncertainty the share program been talking It's of important necessary to safe think a topic think on while. I and consideration So It's program for

the with growth that cash the generation with with today, on that in amount capital balance mirror and business of the sustained the And and we sheet to view have a rear building of of program things the I begin Board together, month all think of to give this the came that and everyone those in enthusiasm company. the of such sort launch discussion

Sophie Karp

Very The good. sure concession they Thank you you. can me mentioned, it's that's I'm and just option I from shortages And locally Difficulty] doesn't it's sort if unemployment. Difficulty] sort but could. Is all, for like find mobile and one region Difficulty]. of labor moved maybe [Technical you workforce on train [Technical just this there own this like an at market more into pockets seem and of it high people something the right, of [Technical if create will having

Lynn Jurich

We're would the So - will again is one be mobile they a shortage opportunity X% that employer so produce do. workforce. yes, our can with just career without question, national going to and We your to a I are of do with training to believe repeat while that QX. believe so programs there preferred creative comment the our I quarter-on-quarter say, see development that I growth though market X% you're we scale labor

against quarter some just really and this that, faced So ago. you see progress a were with we

we we XXX market with have it's scale, right our and but positions, tackling turn hard so huge, our open we're our So, position, - at also that believe say that's scale I it is blocking with would around immediately, so achievable. the not to


line And Shen ROTH Please your of comes ahead. go next Capital the with question Partner. from Philip

Philip Shen

a resolving like a you've explore a of mentioned I'd the know topic on little more. confident couple bunch, this and that bit quarters. this you're we've to labor in I touched in

were last so tight have in XXX out resolving industry checks than you quarter physicians, fill. XXX there, more suggests and do our it with well think to confident you as incredibly is QX this before I the

in your So grow XX% XX% you're maybe guide XX%, prior is growth. grow XX% to QX, of versus I I XXXX for guidance year-over-year know to going and your long-term your XX%, with goal year-over-year to think

comment not could I see your is of outlook, XX% sub one next One XX% can know of official issue. because we XXXX XX%. and going the provide you peers XXXX growing you're labor where other But for growth guidance this your to on to it's quarter. similar something growing directionally

of And confidence, as this what probability and couple than quarters for of need might for to would then to also it what be happen relates your that kind to order example longer a be? in

Lynn Jurich

just you well a more numbers would I point couple So to confident. of to give

So one, in XX our the was XX%. if look you months just trailing growth megawatts deployed

taking So it's peer a share any of companies. versus the number

I sequential in Secondly, QX to from QX point I is growth to the sequential quarter would think the growth where the X%.

rates you if momentum So the you're growth type in just indication the of that of that that support some talking look of a as business, at the would about.

gives what that's So us some confidence there.

parties do of programs we we and third-party, the put place question, for hiring, so the - also business - to more for have also Lee's levers the our us and but is We Brian are in only have seasonality also will for we them. time sustainable help to not third a well as there then direct with

and XXXXs we're XXXs, of is people, at direction. our blocking that executional think not so peers. But scale that a than momentum some to operating should not So is tackling, QX again it's and it's right an but confidence we that again, it's the bigger that's growth - scale and going a a lot in rate challenge of QX the provide the it's

Philip Shen

Shifting your value, $XXX million gears to down quarter. this it's contracted to

think should term. How about year-to-date. how XX% do you do grow - think we or value line trending how do down we it's think ahead, can near you about this I think contracted the

contracted in you've at and this megawatts, is by deployed past year the to nearly over leased year, XXX going And value with down. date contrast the

that that line that the these on Thanks. item. assets comment and selling are be you you That equity, selling overall are even can equity for in So this great. maybe slices residual outlook and would you if assets suggests

Ed Fenster

Sure. Sure, Phil. This is Ed.

and So share like the questions to great a few topic. I things on would

concert So trailing made we about haven't despite measure. cash with really when And any $XXX it assets, - million first cash we been over think very in $XXX fact think making earning we over significant asset sales. investments. the up the have period is position million the we and that's our first And capital a net about as one, XX-month working

for the comments yet all incurred that we've sales benefit So assets. earning earlier that installed the the net affect not call, become on instance to not cash, but have do of

balance the that's see further also is If construction process $XX and million you up look investments. year-to-date, on sheet, you'll so

together, cash it's we you at actually so, look And net assets earning positive and think when quite story.

rate to we where and with than have discount contracted I that rates the finance of being and actual achieving, gets earning would also they mention, had more we net actually assets. can interest that we execution XXX% the realize X% been this are,

be the no which would half to it net sell market, if examine cash grow it assets period. contracted mark in a net earning at to used do contracted no about earning not rate, significantly actually is million to decline see $XXX because you discount assets, X% really refinancings, So X% and of rate higher, discount assets, it's to be would appropriately possible

under the So absent, cash actual generation. attractive remarking performance think that of business. the materials, for story sell obviously that not, we very everything company And in the a altogether it it may may is for the and

Philip Shen

your this be Can there? Thanks, guys For partnering might can a provide do topic markets? Roofing feel Ed. as you update partnering builders. the you you the to roofing direct has share new some with build color on Citadel are contractors? healthy Or in and can you you on one, us just you provide with that California suggest check Our go to an One like last around plans Thanks. home pass which builders? example, market the expand

Lynn Jurich

Again new partnership homes both. have California. remain announced homebuilders we the have well XX is Yes, are direct models of the with efforts did for engaged companies. with top half as as that's which contracted of platform, our largest California's one Thank our we business Citadel, one advantages And pursuing of conversations that or our of roofing with we in last we you. partnership month been so

yourself awarded to past, a get way these two, typically or in awarded if again, as work. prove more. said the you I So community the you relationship And get

quality advantage ourselves get a interesting these So build, we would this to but partnerships adds safe it's and will progress slow also competitive made to like add in others. there as that continue were with that prove the we've we harbor Citadel plus to pursue well. that and the I an partner, high

the with I And safe harboring our scale, we're megawatts. believe of largest number

plus And us model for with since for next business it - is persist who that prefer advantage and the so durable a the service builders XX% any the four doesn't capital, credit as the there solar upfront that for require a market. in years four years sustainable will really


your ahead. Colin question Oppenheimer. final the with Rusch comes of from line And Please go

Colin Rusch

point? the Can all of you about this at at have talk the demand the on constrained and storage you the meet capacity side needs you to energy available are supply

Lynn Jurich

In the not hardware, the supply terms are of physical we constrained batteries. on

constraints. So overlaps this we it installation again though the have with markets where

So not are the it's having we've conversation constrained terms in of there. But we the the batteries conversations. themselves, been same previous in

Colin Rusch

technology a Obviously, the plants terms technology the the if what of and virtual in phase at look move meaningful shift of is technology you but you and can portfolio. you as business? there wondering in evolution are about you just the of that power in landscape would have next into as in services good include then and I'm you moving pretty And provide, seeing about terms risk, other want vendor you how technology think to exposure maybe managing needs guys shift a been you and towards

Lynn Jurich

batteries. in that's happened we're that's innovation I a think mean excited the all I tailwind. about the

landscape seen of on next easier with coming electric reductions We - here, there and batteries, the working are price happened, out but look higher have the of many will suppliers there happening to to is the amount not vehicles which innovation cheaper be there, generation that's at we those capacity. when install install

And so those the all come. are on

we're been The would So have that that. It's the say that shutoff said. I today works. only tested through we it's power attractive, we but getting product as about It's better. excited financially


this would at Lynn now to back questions showing I'm to conference time, no like further closing turn for remarks. I And the

Lynn Jurich

evening. have Thank Hope you lovely you, everybody. a


this have participation a for today's Thank you concludes your call. And wonderful conference and day.

all You disconnect. may