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Sunrun (RUN)

Participants
Patrick Jobin Investor Relations
Mary Powell Chief Executive Officer
Danny Abajian Chief Financial Officer
Ed Fenster Co-Founder and Co-Executive Chair
Julien Dumoulin-Smith Bank of America
Andrew Percoco Morgan Stanley
Brian Lee Goldman Sachs
James West Evercore
Maheep Mandloi Credit Suisse
Mark Strouse JPMorgan
Philip Shen ROTH Capital
David Peters Wolfe Research
Colin Rusch Oppenheimer
Kashy Harrison Piper Sandler
Sophie Karp KeyBanc
David Niewood Curator Fund
Call transcript
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Operator

Greetings. And welcome to Sunrun Second Quarter 2022 Earnings Conference Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. [Operator Instructions] As a reminder, this conference call is being recorded. to conference like host, to now Mr. would turn over the your I Jobin. Patrick Thank you.

begin. You may

Patrick Jobin

Thank Operator. you,

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

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

Powell, on now, remarks. the the today participating over to call Danny Sunrun’s Q&A follows Mary. are CEO; session Fenster, Ed be prepared turn the Abajian, call also and And CFO; today Co-Executive is that let call in Co-Founder me Mary Sunrun’s the and will Chair, Sunrun’s On the

Mary Powell

you, to developments we Washington so delivering all talk climate news you last on week fundamentals, on of since our we speaking the about was much Frankly, strong legislation. forward of well, Patrick. I Well, about quarter. with already out then and received this to and looking Thank how exciting coming talk well, to good the are the

laser breaking have crushing XX% innovative, see you to said, We we work luck, a and As am That customer and year on the last shining of year. to a and your affordable, have spirit our is have to like proof incredibly new and customers has last Sunrun the have momentum, excited team of, in period we XX% more records growing truly quarter, fundamentals on ability growing luck providing in feels month created. future, again above-guidance sun the compared talk been sales the own the focused just company volumes the continued the with the been I recession installations to strong resilient and from make some it delivered same by about the last doing orders work.

through improving and faster, be on stronger into those net of and see delivering to flow pipeline, our subscriber to benefits build values continued are which expansion continued guidance to actions We margin better through the QX. underpins and continuing

Looking beyond running excited am I the quarter, are building very the we about future to.

sun. We to cleanest abundance and the technology natural ultimate clean are in through to to lives. customer put the their the control, and simplicity and believe transportation the of homes, company We we the energy earth for with a powering their of their life connect aim is way fuel on every hands energy possibility

and independent affordable, provide We more are energy for running to America. resilient a future

the time vulnerabilities of and the across and them provide some second all waves the center industry. solar fossil-fuel The our as the energy our nearest twice embrace U.S., for years need in putting as of anniversary This large clean, the Today, assets largest industry they enviable want to to highlighting of the greater making segments we Now and more problems and resilient to clean across X as greatest all. to more is Americans, socio-economic the scale world, competitor of crippling than create by position is providing clean are we energy company, prosperity leading to the heat us and the help our energy affordable solve in to facing need lives. a finite, and customers what have and sources capacity, geopolitical solar at run gigawatts put XXth energy growth the accelerate to forward. wildfires and of country, celebrated operating we decentralized areas a the all that networked rapid droughts summer in us and their sources that record-breaking of continuous devastating owner XX at tensions marking of underscore affordable,

storage, over energy, in when the As XXX sit capability deployed clean the to stored deploy of we personal megawatts called on nation’s leader upon.

record sets Our us track apart.

price solid accelerate role what We economic XX customers the the and that well executing stakeholders. And and the proud foundation to repeated the am today better, energy and embracing future environment. navigated before building have accomplish current are where and the are I supply for we that dynamic has Sunrun have built chains stronger, to to policy faster, am that various whole is the and been uncertainties, of for place Sunrunners provider can even we team has so the share cycles in in even stability on Sunrun recession, is of over inflation offer customers last running been high for since make we to over My home periods well years, basic across go-to the assuming fundamentally country. human focus a a necessity. and or positioned opportunity incredibly proud the control I services our CEO because we security,

against making these great are progress We goals.

rapid rapid very Rapidly We quarter. the the of solar sustained understanding a and in of escalating home installations the across are is your growing actions April. utility on delivering levels rates customer demand, proposition. new confluence March took following we about and energy late early grew price growth. inflation country, of with virtues strong a utility value rate The we First, record driving this storage, compounded by powering XX% by

our and was the many many remain future. elevated country inflation to large As for higher over utility is CPI poised the rate the you foreseeable XX% across in latest of is in and data markets, even know, of running

to also expand innovate are continuing our we and offerings. Second,

alike. providing vehicles enable energy. system energy incredibly valuable our and and EV vehicles transition to electric electric and ability run are customers independently-generated by drive systems. helping vehicles We the solar who from Customers homeowners need and clean, benefiting These resources their larger the to battery for the on are

backup exciting. started orders conversations thousand off of Station XX% System. the a flow have two-thirds Home over we customers a to placed with over System. home they install coming the of approach has opting potential has already the and along advanced solar months. power as for their Ford from are time we customers numbers, several officially Sunrun bundling Approximately more uptake installed F-XXX Integration Pro and are installation with Home partnership of on Hundreds tremendously Lightning. seeing placing been with thousands systems Based Ford orders in additional at of Our bidirectional and capabilities the Charge and the delivery initial the have is kicked expects as of same Integration already

home, rolled abundant Vermont, the New markets electric into the This solutions. planet, be clean to achieve their and and source will our energy The complement benefits, by Jersey affordable this launched as customers to management optional energy the the have all tapping independence offering X stability in sun. company’s California, We available home vehicle Sunrun and also and an charger vehicles just Level will on allows to most powering greater new by at be month out later year-end. add-on even

also by the we the company. other during solar grid in solar are any can systems than needed. today, discharging thus more battery its more times installing critical provide than far, systems We with service With a most batteries to installed XX,XXX electricity leader the deploying

we the frequent reduces alike on solar amazing and grid off to do which policy and our stress continue severe customers strongly solar of of the operators, take encourage load waves energy. source the demand, makers our grid. this only to during overall export more As this leverage summer, times heat utilities grid our stress grid, Not nation’s batteries peak

able add and residents We service announced is Maria, further expect as Rico. prone company’s electrical SPAN, panel the and to we in Rico’s of offerings available if Sunrun through this Puerto faster battery will Rico uses offering. quickly and electric Puerto and Hurricane entered devastating start dispatch and and grid, back to our with to and differentiating during how solar recovering service also ability different further home provides alongside will backup Puerto adoption this largest choosing power solar where and become offering more protracted controlling Yesterday partners electric the tremendous island’s innovation, innovation This exclusive next systems, increases, our Sunrun available innovate grid even power providers will of to making unplanned is has grid shift offering Sunrun outage, to blackouts. an the state-of-the-art operators. we be the opportunities Sunrun called energy of capabilities. home outages exclusively month. improves, upon an With see sophisticated even battery home supply availability partnership as batteries fragile customers by to power agreement from customers this to the systems. will Rico, vehicle with in one in incredible, with smart technology effects throughout Still customers Sunrun’s remains an and The battery and even control Sunrun have to solar by used. adoption energy grid to XXXX Puerto residential

are all efficiency. a We laser of accomplishing focus this on with

can growth, While and efficiency, we on to focused organizations and initiatives innovation innovation pressure deprioritize opportunities tremendous together. growth delivering are efficiency

QX, our growth remained in As example installations Sunrun while of an the combined unchanged sequential materially headcount organization. in focus, new solar XX% in delivered

items. energy. need, committed is table a our Joe and forge from seems are that commitment came we clear affordable by to We We Shifting highly Senator they climate to providing combat clean on clean, gears legislation can a bills. beloved decades likely invest energy, while to passage with energy, Manchin driving incentives actually the that a meaningful customers to insulating utility delighted efficiency, customers. to what inflation them It long be remaining there provide skyrocketing delivering external relationships in of clean to some also cost experience back enduring, great were and to

policy. two our cost tariffs tremendous communities of as a energy trade and multi-family the most of our time to has on encouraged path the that see affordable busy first providing security, administration for the also been were building home took steps and a in legislation in buyers greater latest stability, independence socio-economic with We impact anti-circumvention clean work period for success savings. energy need through to those block It and We in years. to also housing opportunity to build

and results such timely current football-fields of delays to modules and This sitting is the redesigns. us in in costs, unnecessary However, bureaucratic system ports, for the Customs the process worth industry. from as release Border the friction the of customer Patrol at many currently causing

of upon recent have demand the to are with that the the to solar These Patrol progress. delays we guidelines, seen most Border With clean, few to be the have compliance in release want to to appreciation Americans and some customers, what I affordable and are employees modules Danny, demonstrated to to and Customs at over quickly We slowing Sunrun I of that, follow want, deployment and for respond privileged share call serve. solar energy. of are consumer requirements, the all before need called and latest a turn words our we who amazing

doing work and is innovation team rapid a growth, accelerate customer-obsessed to Sunrun. deliver on Our culture tremendous at drive

We of our are all combat a to customers to with Danny. future. energy journey customers control of are With and over their you, help appreciate part that, running this change marathon and us. who over We climate provide Sunrunners

Danny Abajian

and with and Thank Mary our today CFO. an financial markets I the joining in Mary. cover I our everyone. call you, Today quarter and as quarterly my capital Hi, outlook. along on activities operating will on am first to be update pleased Ed performance

than customer XX,XXX quarter. more to first XX,XXX, results subscriber the quarter, approximately the In second for additions Turning including the additions. were

XX% nearly from Our total the were nearly period, subscriber our additions additions in up QX. XX% of in customer

guidance prior megawatts exceeding capacity and increased XX% year XXXX, energy in over saw a was in the the products high increase We QX. in installed orders strong Solar Customer and our by customer to quarter quarter range. the compared same of end quarter the demand from our for second the of last XXX XX% services year.

adding customers down of is the to us pace to increased still pipeline, pipeline. allowing are our work gradually our we While installations

closer Our to quarter at current pipeline one is this point.

now have installed batteries. over We XX,XXX

attachment XX% of rapidly as XXX,XXX with ended compared introduce batteries battery expectations subscribers, resulted in and that additional where X.X pipeline, suppliers and allocation to supply we representing we future, install in and needed networked the attachment ahead. have are Today of approximately installations near solar lower cycle quarters we our gigawatts XXX,XXX expect We Current times battery but most prioritizing conditions battery in expect are of capacity, work rates will for longer through We grow an grid concerns. energy the battery prior markets they the key customers the more QX reliability in than meaningfully. to increase year. increase

approximately energy under an is in the to In for subscriber number of additions $XXX $X,XXX. was more provide. March of early April most made home over cost remaining in creation multiplied we the or Total recurring QX QX, a revenue with XX-year value with late through deployments. or clean value the stood in subscriber XX million second generated, QX and delivering annual Our and of the are upgrade $XX,XXX, $XXX was subscriber revenue adjustments ARR net the of million installations subscribers and average approximately in contract XX-year quarter. and generate at our which contracts At The value period pricing will in significant, starting our QX, subscriber by life the reflected value to policies be flow $XX,XXX fully net was end recurring partially years. approximately we

certain policies producing in markets. in and evaluate QX our revising and activities on are we on will incumbent mix results pricing positive customer based moves the rate overall We utility and trends product continue capital and already to offering environment. These markets sales are optimizing our

to prior assets and customers flip expect the assets distributions in net second capital and were -- measure is now cash, of end $XXX million $XXX million at assets time, with at increase earning net Turning we year all our assets maintenance quarter. is and in the X% from equity were an at of flows partnership tax distributions of the Gross gross gross the million over partners partnership a the financing earning sheet. over costs, receive quarter. of end earnings the equity and to billion cash total Net second and earning to cash. ended plus to project partners, operating balance earnings compared first $XXX billion assets structures debt. $X.X discounted $XX.X Gross We earning from of to assets, unlevered cost. Net the quarter, the quarter less

a maintain project finance robust to continue runway. We

expected capacity closed today, of quarter. equity beyond over through tax term project for megawatts sheets executed and As and transactions debt us second fund subscribers provide deployed was XXX with what to the

than outlook. the fulfillment further our our of demand the improving visibility to see, around and module our create during XXXX, uncertainty pipeline robust now the Mary some second strong solar gives The and operational Turning of consumer half capacity for mentioned confirming be current to XX% installed. we import capacity, disruptions us now volumes but year-over-year than to efficiencies growth of volumes. our prior solar confidence that value $XXX guidance confirm expect generated million our the year, total in guidance full total year over We generated energy will full substantially faster greater value grow meaningfully

value variations chain policy We the net credit, may of investment pending in total in to in assume either Act investment Inflation direction. result increase generated XXXX. tax metering impacts An credit continue net from value result California in $XX,XXX not increase forecast, any passage and volumes supply the we could any in our the obviously disruptions of QX expect do that In tax Federal to subscriber above and to Reduction QX. from

in XXX strong pricing range in For solar megawatts of $X.X quarter, April the our Apart securitization, expect brief from in note securitization megawatts. remained have markets. Since availability and narrow energy rates senior be we interest has a XXX bank to billion market to period a a third June, remained range. both in installed capacity the capital the of

pressure downward for recently to growth Our benefited softened. long-term economic have have as borrowing rates, indexed from costs, are interest which expectations

wide our in be believe rates appropriate given to range capital markets. between advance continue the We at which of contracted potential We X% subscriber volatility to rate. XX% debt to XX% a is discounted on are expect deployed values, portfolios the

equity, rebates, numerator proceeds fees, of advance debt, from in subordinated and As net sources, received, terminations. prepayments, senior tax rate swap all and a the customer includes reminder,

before, enter As we we into to newly customers. swaps have capital shared interest installed frequently on our rate hedge costs

X%. a structure existing Our capital and swaps through debt mix interest X% capital is rate We hedged observe securities. also long-dated costs between and of fixed-coupon, as currently well our

we earning ago used below recall, using capital saw to figures didn’t may and X%. report several and value X% X% update discount subscriber rate costs a until you As we years assets to gross it

discount plan costs, capital update don’t fluctuations X%. monitor actively we for we minor to While around the rate

Mary. this As price utility increases price in digits, meaningful the Since earlier mentioned, then, remained rates. pass capital This let through utility large high costs persistently to inflation to it back implemented behind labor, interest customers. year as me With to incredibly opportunities their delivering fuel utilities and value customers to we ample provides proposition. price higher pricing continue headroom double market that, and electric and has inflation turn while evaluate still an attractive

Mary Powell

shoulder-to-shoulder about them focused exciting their stay the on every be powerful independent while accelerate delivering climate to in our seen. no our we to our power lives customers, to better on Sunrun clean our such security. impact, Danny. the energy legislation addressing affordable stronger and obsession give rampant time energy energy, and results the to on want employees with That work our they for at our sit to and so in what working faster precipice is could sense nation’s matter working deliver and ever Sunrunners, the We they us, a reduction them thousands said, with luck, It is Thanks, and maximize of measures clean the squeezing across country. and our and a households what hard of comfort It the with greater and Americans investors. delivering of growing perhaps and has throws day who U.S. need, to history impactful most making the inflation serve dramatically inflation, strong own at world all which think how is

I and us with many questions, Sunrun, at line partners the creating planet big want for by ambitious customers team for the line open the blessed to who work With day Operator, we to my every on hearted, for appreciation the single questions. employees are that, Before the deliver to serve run sun. again a deep opening of let’s the express

Operator

[Operator Dumoulin-Smith with you. from with question. Thank question Instructions] comes Please Julien Our proceed your Bank of first America.

Julien Dumoulin-Smith

figure XX,XXX Thank and for Good Hey, in that all seeing kudos the that team. been on you here. on afternoon. have holding fixated we

Mary Powell

Thanks.

Julien Dumoulin-Smith

can, if running -- I I can, with to just just If that. indeed, keep

increases typically to think have hear that For further more we how January do expand further bit future don’t rate right? least increases, about that today, a If after example, a utilities how about mind, I’d up XX,XXX compare considering or little of you and rates the XXXX? with expect you your you love Xst, at implemented into in step and around that the fixated increases rate is can or cadence XQ going XXXX a XXXX

Mary Powell

Thanks But much a have the has of question savings really, additional Yeah, bottomline in customers Julien. But if have the some that’s at value. we markets really question, all basically any proposition. Mary. lot for America. and lot hit headroom. for your it will our enthusiasm first our so net on maintaining value I Hey, subscriber with It’s of and then I broad across the focus particularly a But for Danny see level headroom. the comments. significant is We mean, providing we are it.

and also factors. are are solar seeing Julien, we are same are at going power motivated by more more customers other more We that and customers, vehicles. And candidly, the so electric to time, their again, also more

solar part a the vehicle volatile the prices with what prices, your drive an at also when independent to of demand. is think see power own the as we continuing So that the versus electric you opportunity pump, also to about

serve. are highest very as if data, don’t proposition know the hit customers value to say, very, are delivering would want level, sure opportunistic, to making I very being that the at we you the on again, are And with focused we same at significant that time we anymore. I we a So

Danny Abajian

you gained that, QX as pricing much have and as towards for will the pricing will we obviously, shown notice, you for the we Yeah. as last this -- we of that taken we guidance Thanks QX actions we also, the have Not we stick. question. made. the Julien. the realization this and as confidence discussed I actions indicating have progress period, period, making are have getting time And

guiding of have has we I are the about are sense think thinking are things a QX in we that, confident and you what Beyond not Mary said moment. we how time. anything and at regarding at kind given QX this for we

Mary Powell

happening, the of electric it’s also, whether know, lastly, vehicles, systems other as demand well. it’s driving Julien, types heat other And you up just the pumps, then adoption as electrification, for that’s larger

Julien Dumoulin-Smith

here ITC what is but you. how Certainly. to Excellent. adders, some of bump additional ITC, portion your that or the additional ITC for there’s business And be which with nimble obviously, could Thank some these higher an up today? an here towards you up just considering these of ITC of the extent on those follow could your a quick adders the get existing to additional see perspective qualify origination could opportunities you of pivot kinds IRR,

Ed Fenster

Ed. Hi, Julien. It’s

a customers us qualify possible existing geographic fantastic a little am sales team business our the of low by here. approximately our on Tract our adders a have would third particular, on I issued adder, originate opportunity seek preliminary will because those numbers, But Census We been yet. obviously, is, And in and cautious based to marketing be in it we the additional each for Data. exact on haven’t regulations areas. analysis Treasury would the share be income direct to promulgated that with of

there. On I American there’s based then the there’s like qualify most opportunity Houston promulgated. for on components, requirements made significant suspect, workforce. there, a that the communities, on opportunity, will the would depend And are probably on think good the we percent energy obviously, the opportunity instance, again, of a But

there So have work to there. we additional got do

Tax run rate to And the which targeting flexibility have and of like to one only again, are lot those I should even the significant Section So business obviously, we under available of in those then, think higher I achieve adders a Credit, a available lessors. opportunity rates adders. sort mention, is XX feel of there’s we the on that attachment

Julien Dumoulin-Smith

guys. you, Thank Excellent. Indeed. Yes.

Operator

proceed from Percoco Please with your question. Andrew Morgan is Our Stanley. with question next

Andrew Percoco

pricing just if might that to more on the first just side, have you you cost down that power to you X% But when the we seeing near-term my pricing just have the understand curious, per on start from more thoughts question start actual totally costs decline headwinds. offset creation annum towards saw is So drift any historically?

Danny Abajian

Yeah. Yeah.

of a cost have yeah, pressures. So, about lot some talked the we

the pressures, one -- work the described we the business, Mary those equipment, as think the pressures there other up it’s dimension of to materially we or we as and our speaking kinds mentioned, kind virtually of positives efficiency And are we unchanged with quarter to us that were the cost I on over the the we up efficiency around there things, sequential greater growth, to of achieve as continue are it. delivering able scale headcount continue up was, volumes. through not through to of the business improving by

a momentarily In addition, rate, had right, in of battery to of towards like demand that dip has as margin a consumer further eases attachment driving the kind and or which is about via increase we attach, that resume is supply that higher product that the going product battery we certainly there. in lack commented attach is think

like, the pressures inflation we business So, all day-by-day to grinding expansion coupled in efficiency around opportunities, just compensate further the out know us. margin with

Andrew Percoco

you the a and some between spreads to alluded there me, strategy are credit has from past. ABS fact helpful. the ABS that markets more there a the And depository of on been noticeable is it. the in seeing Got it funding component for last strategy your call, you funding Super and what difference capital. And was the I think, big Ed, one

cost change, going Just all of curious today maybe your capital how if that at is strategy and might forward? where funding

Ed Fenster

Yeah. Yeah.

the -- of looking continuing have are cycles and of we where between one to quite over and then favorably periods think markets. us we difference habitual we think of that markets. time. access the capital in And capital a certainly we to there is it’s see of different those have those we markets cost difference played the to And be evaluate cost for So, at quite broad capital I between

designed our and We be capital difference both to approach quickly are and the also back understand often that markets to forth needed. that of fleeting and in access as strategically able capital be can we to cost as pivot

cost So a pricing or to the today is bank relatively see credit we cost we debt have of all of pricing continue our to quarter, that. ahead to more your market is to has bit question move run favorable blended continue subordinated at the that exists about basis. which And we believe we seen, of range. as and difference than little varied senior That a and bit. capital, to capital, It narrow, the look said have commercial market capital, in ABS on the but through and cost that it X% with X% continue in spreads is around a little

off favorable recently we seen mentioned remarks, We tapered much more little spot. to have base as in think, a the opening rates move a have around bit more, I but

up through positive, dynamics So have to work we have of last cost trending we as that from those year. of taken capital, kind recently a And still of lot late and action broadly. discussed,

Andrew Percoco

Great. will there. leave it Thanks so much. I

Ed Fenster

Thank you.

Operator

with question. your from question proceed Please Goldman next is with Our Sachs. Lee Brian

Brian Lee

Thanks model. everyone. of kind questions. the I had related taking Hey, in the two for

in XQ First, for above end target. a bit guidance, robust growth in year than X% the growth saw on what of single and XQ, That’s sequential high maybe guide. just implying then hit you the digits was growth XQ you little which the the are slower mid-to-high to full and

then just us through pricing this loans, any or customer of maybe in trends leases, you shifts question be, of quarters cadence are offerings, can your PPAs, are notable talk sort et there’s increases the you you if right follow any in growth the was up. And of then there seeing would bookings ahead a different had prior pull-forward I seeing been So now? cetera? between activity versus And

Danny Abajian

Yeah. for Thank the you question.

think, I major previously, in year. increase of we volumes, the heading had, into at customer new and have growth late this discussed orders last have we sequential part on So year, as year, beginning the

in to growth at on also, a and on business on On And focus. up, of bring the side, next backlog that a couple ability are guided reduced valuable is challenges the the we about think, obviously, to but quarters, has to next we there two we that the to with it the cost has that quarter. pipeline, the pipeline last even or continue to one sequential the encroaching the as measured quarters, and closer pace, a is look few work nearly some I down that a picked a call, is the deliberate have quarters in growing as business, talked to to

of uncertainties growing and been a we some the provide, been see pace physical are these in the has we footprint of with. deliberate a and focus business the As we has comfortable measured guidance the picture, macro

lease quarter little bit As quarter seen pickup shift, have a far as we product to lease XX%. the versus XX% seen have of of this product relative the increased we that a last that mix, where the and loan, a was

Brian Lee

Okay. That’s kudos on net and the awesome. on half. second expansion, subscriber hitting value And then here targets the reiterating

had you the XQ, think normalized the what’s mix $XX,XXX customer out talked of is as much step wondering, Obviously, of know from there. so forth? pricing we about the XX,XXX of past. model like in target sort about of per Just subscriber you reaching I versus bridge value? other and kind how $X,XXX then, term that you plus to here, reading kind the can for longer already are net up drivers And

of some you can to drivers if and here there’s what if the wondering you. would Thank quantify? step update up from be, So, that an

Danny Abajian

you. Yeah. Thank

which increases, still encroaching coupling on those the have upon again, to the quarters, we that with pricing are run realization room early the late We March, backlog, two so April, said, bit got -- has to pricing take for metric. the a those little hold kind have actions passed room through to and more of quarter run here one means, one we about of

a the of quarter through it’s than So through XX,XXX balance and partial form guidance to what’s those greater realization to the the us year. the the for that’s causing also of

scale, have get and margin our see continue operating the which within see As to will we on we the improvement, leverage services of as we we year. continue cost, creation well, some the platform And back side deliver we cost cost to margin. half

as there in of metric. improvement through margin while positive contributing year, well We balance the to the that direction the expect some

Brian Lee

on. Fair Thanks, I it pass enough. guys. Great. will

Operator

West with is Our question. next your with question from Evercore. Please proceed James

James West

afternoon, Hey. Good guys.

Mary Powell

Hey.

Danny Abajian

Good afternoon.

James West

from conference against some some here So, accounting. them. and a microphones you or another at had if them? with the the been least have respond take on was of response opportunity your comment there seller to back made Sunrun from to forth response course, call Mary, with agitations right to now some of short curious you or you and I notable have this am And recently you in there’s wanted

Mary Powell

from sort James, Actually, you level, Yeah. to I of and… high lengths point-by-point a think, we to know, went as go I Sure. of -- sort

James West

Right.

Mary Powell

Danny as waters … be for -- his from just great any would folks muddy just we would as it I share that Danny, the has were have a it thoughts to wrong. that company. make at certainly of perspective, We always our we sure and dialog is -- so thought, your sort and that would clear with all I you, given company. CFO, I welcome as actually, tenure it. have how look actually love

it would great hit. could you be Danny, I thought if So, yeah,

Danny Abajian

just lay on our I we around that Yeah. internally remarks those prepared posted website.

are history given our here. you long We the if fingertips, will, at of kind

James West

Sure.

Danny Abajian

and situations, private like, investors questions answered high and years decade course with the them very have private XX some a of multiple standpoint $XX from in, to years, just a Delivering close these to about my opportunity we for which asked to ago. have diligence over much quality the deals, billion was even where raised, really of due here, days come under spanning have some us XX reputation over probably

elaborate So, responses. felt the I on point-by-point planned here those quite think further good to we we response. don’t about

the private And on have to in hood rigor reputation highly, speaks reach which itself execution really get to basically said through treated record those There’s to we excited investors, which all those are these open on we it’s team. again, the on far prepared our dynamic have about up of speak a for level that get we website, here a ask they it the have them our due like, so lot times, a you market of as about diligence the saw why, situations, I think, excited But, our have pretty environment. very into certainly and raised. appreciate have we and website. to we think, where bit that that kind of And is many are -- about matter. go as, from do the definitely they have quickly this team that of which the macro you response, comes a would awesome kind lot get I of already the the very in a we we we culture kind that had of the the very specific with reputation execution. these with But us raise of issues, go transparency done could a of again, things our and think and anybody humility I I investors, of on all that’s think capital to from we robust

James West

Sure.

Danny Abajian

And we are excited about the trajectory of business. the

James West

there. enough. Fair leave I will Danny. it Okay. Thanks,

Operator

Suisse. from is with Credit Maheep Mandloi with question question. next Please Our proceed your

Maheep Mandloi

Hey. Good the taking questions. evening. Thanks for

First, growth XXX over in the over plus of of California talk to on to entry about that could terms in point from sensitivity just you the growth proceedings QX, kind targeting here kind there? of megawatts the

Danny Abajian

mean That Yeah. is a on -- timing. not question I the there

guide to that at next is guided And have impact the more what’s kind to moment, the any to we timing out action comes them. it, annual more year. in see impact believe the deliver uncertainty with of QX the is any there. what clearly high for there guidance. given of obviously into measure QX those the impact But a implied So to the assumption and moment, volumes At impacts we base have and there of is, it’s unknown, we some would don’t

Maheep Mandloi

just two to or the JV? that with the OEM Does And does the Thanks. equity you. related on it tax chargers, Got who’s more help for and tax EV the is one supply SK from credit the me, transferability. IRA,

Ed Fenster

Sure.

is Ed. this So

questions. of couple a So,

draft. tax have again, the will don’t advance of is for again on potential So, to first, rules. That and those where credit transfer in promulgate to something I IRA want speak in rules Treasury the current

or sort certainly expand the for continue that is I and something equity to traditional and will more off-the-run of will think market high-level that like but potentially that. products my capital cheaper, be tax be suspicion helpful,

that most and to more So traditional but monitor as I to that well give financial chat about the likely. outcome ought think continue structure, we it, better a which monetizes depreciation

although a to expect to It ourselves. say sometime SK with are calendar we more will separately, are EV As about sourcing that be it not year. to I should be that continues charger, be or JV we the that product is itself the manufacturing we that the talking during

Maheep Mandloi

taking for questions. Thanks you. Got the

Operator

from Our Mark Strouse proceed with next is JPMorgan. question. your Please with question

Mark Strouse

very Yeah. I kind Good my for question Thank questions. one had two-part on you much just afternoon. inventory. of taking

the capital to quarter be your your working cleared back about over that next kind or kind some are that you. of this strategy the kind on of creating in that then of And ability having of kind a demand of question or if two, of you XQ market, is the second leaning Thank inventory inventory becomes part comments gets meet in here Going up would USLPA USLPA assuming to a your kind tailwind? tangible the what kind the on delays impact period? during into of is,

Danny Abajian

Thanks calling done Mark. the talk for know I over I didn’t you. don’t Yeah. you in. if were Hey, to with question. Yeah. want

questions. great So

USLPA. year, up at June itself, -- financials, XX/XX. will those you XXth On to you We for you with given the compare the balance kind of our if see balance inventory still look dynamics inventory if

You that $X about million will slightly also quarter-over-quarter. notice it’s down

bit into through dip did we So inventory a period. the the little

of overall up. some still by increased driven the in that are being We business. is Obviously, volume

did last carrying We excess of by that in days of time days XXX. were is of driven that keeping being balance Some it of a we guide supply high.

risk, both increasing has Now product a some think remains we below given all very have our for of the in volumes tightly done comfortable balance think dipped we where XXX planned days, procurement way the year, activity the we getting comfortable we that of that I although the have but situation. with and a the it detained around I around it feel feel

Mark Strouse

Thank Okay. Danny. you,

Operator

Capital. question. Shen Please is with Philip question ROTH proceed your with next from Our

Philip Shen

everybody. Hi, my taking Thanks for questions.

of possibly a your guys was referenced on Can you actually one some had redesigning challenges. Thanks. that of As USLPA follow-up on business? module have may vendors you provide impacted? some situation. did additional think much have color how to the the with CVP Mary, How the USLPA I the you you impacted contracted do

Mary Powell

Yeah.

fundamentals. I the high it we on a mean, at So again, crushing level, are

with and suppliers. like, -- we some had So a organization, work we we have in to have and of reported, yeah, as do flexing the we we number again,

So have in no to we flexing make do some mistake, there’s had business. always the

The causes highlighting that that just news the the the business customers for redesigning work in that in are and are vendor position. one friction where vendors. finding another. an set have if you enviable is have panels do versus to risk good context it that’s it’s up of So is and you we with shows We amount might it that the in really good of you of

relationships. long-standing had have We

making standards been with, they meet operate a having leader that the for We requirements. sure all we in have of who

the and product put that get are been directly, really to really as most amount very still quickly we that good just said, make we it’s pressure the aware But a released of on sure So -- Danny Patrol Customs around that’s sitting ensuring working of Border port. they recently to with are possible as sitting as we at supply. on

relationships. We have vendor great

We in making folks have sure been a meet leader that requirements.

this really, really keep eye keep our have being so and I on And just in on pushing to as quarter. largely ultimately, something see it we got

Philip Shen

Mary. Thanks Great.

would maybe on we to flat even for the to hit to view follow-up if specifically, the expect potential value expansion? again, subscriber could subscriber net a potential in value, we XXXX I year, As net you through be the wanted XXXX, get see as more

Danny Abajian

Yeah. Yeah. Yeah.

to guided far we XXXX. haven’t So

some stepping environment. more do balance the those and noted California, XXXX in remarks, the value in total than subscriber variables impacts think up of the to value, play rate interest swinging generated they into for from so we the come in I what includes the of year. That XX%, happens net the around ITC

on focus and stick. think pricing those I enough the of and our year increases out uncertainties closing with having those strong So

on I think we deep XXXX the guidance. away stayed have kind moment getting from the at of into

Philip Shen

Okay. Fair very enough. much. Thanks

Operator

David question Please from question. your next proceed Wolfe with is Peters with Our Research.

David Peters

Good Hey. afternoon, everybody.

in thoughts next just I just it any you in release years growth. to think, quite curious your to before? would at you point economic incentives from over new XX% wasn’t you or the about Just the in one several this the and bigger turbocharging where from in any about, have day past, Thanks. could markets get the how respect made Do industry enough the TAM annually could the sense IRA, much enter magnitude that said the with comment grow think, anywhere you I the XX%

Ed Fenster

This -- Ed. So hey. is

very main a the I the more extension adders or were for expect it things tax mean there areas, assuming the the the base are it’s will, increase like long-term lower if is which of then discussed and There it’s could IRA for to So -- also, for also which a on -- from increase we people. call, but in also situations are quite panel the There’s more will think other helpful. we make upgrades, few tax be also credit I earlier electric right? that Americans also credits storage would affordable for pass, income which credit. There TAM now obviously particularly also available the

-- prices, with backdrop robustly build electricity the escalating of growth is obviously, those obviously we against our we we -- haven’t the significant. So obviously, and the that regulations yet, path quicker think to have We opportunity commodity and make… rapidly just elements, they quantified for and a want that

Mary Powell

Yeah. Yeah.

Ed Fenster

but obviously… … it’s

Mary Powell

Right.

Ed Fenster

see… would … it where

Mary Powell

But… Yeah.

Ed Fenster

nice … acceleration?

Mary Powell

Yeah. And so a that. thank put to on point And just you Ed, much.

just with we reliable to also independence. that a is really faster, Americans more and I again, that demand, then customer bill of kinds potential other right? ability towards And the strong electrification at faster affordable, energy to of to means not want So, with more passage to energy them place but way growth, a own going move more a we Americans electrification, like generate to are are sitting with, going surging their encourage of is mean, the can help products which move to

sort not again, going we on be the some believe, really climate just So but and of and monumental to demand, really precipice in need as ways I going practical terms that’s very of of turbocharge legislation in surging drive that seismic that, in just these energy. towards is the around electrification TAM, to the the like are for we ways, solar said, not the felt impactful

David Peters

appreciate I thoughts. those Great. No.

level. just the bill subscriber Just exit guiding kind to year one net other step-up of just see are to can guess But the one, back value, $XX,XXX I around that we from how you guys right, just should quick that alone, we higher assuming or fast would marked understanding that passes in calculation, flow think pretty up of the the ITC just it be again, would through value tax about how just equity that?

Danny Abajian

It to its Yeah. the dated depends January on, legislation obviously, current form. in Yeah. Xst. It is

value working an financing returns as well. pretty and the positive XX -- factor year. I additional investment would pickup for And the immediate then show as installations there up impact systems with on across the capital apply the in and future be you on it calculate that would through this year. in as immediate, benefits will our equity be the there of systems kind year well an some But think, versus as have already should the would some placed service be there we So tax and funds, have and XX, flow to

David Peters

it. Appreciate you. Thank Great.

Operator

Colin question proceed question. is next Our Rusch with with your Oppenheimer. from Please

Colin Rusch

curious couple just time. elements am on about the cycle I much. a of so Thank

talk of and little installation you new training staff? a changes also terms the bit recruiting in and in then sales about can So cycle

Mary Powell

Yeah.

Danny Abajian

specifically -- you the on what was question sales the Can cycle. Yeah.

Colin Rusch

Yeah.

Danny Abajian

elaborate can first If that one? you on

Colin Rusch

are just able you educated Yeah. get faster point where are out here are have install are and some the to directionality elements these with the on just… than with quicker, of permitting able of systems getting make decisions working it, shorten that they the a -- to customers where been to you it they you enough

Mary Powell

Yeah. XXX%...

Colin Rusch

…short?

Mary Powell

Yeah. Got you.

it’s of have, yeah, the made -- this real made -- couple again, about focused a really about. we we really pleased some customer really from quarter and in -- mainstream before, we where, was in process. signature I this already my time where cycle becoming time a solar I of talking and headway. the time. cycle be tightening was so the more not have But, as way coded on So again, some last sales installation thinking to as nice context, with last more Candidly, we progress seeing, the that to with with point we tipping again, the the this on that talked about made are much again, really challenges we quarter, we years, have in the again, actually, over was that’s related It’s lot hit it view, in last in consumer really is have shortening

sales our the doing, with fundamentally customer the in of part of really been demand, slow. and it are So context process really incredible has work teams that moving is that the dealing very

robust of perspective I I one things have we attractive also mentioned we is, context at definitely you highly the would that a -- in we So through. from continue Sunrun But training. the remain also, just think, labor been a have employees go new training really employer. to Again, we as impressed you expect, of have with

and in Sunrunners when them. just So, relatively on context straightforward and we bringing recruiting to the we of time a lot also where have enthusiastic a seem need of new

and what position terms productivity seeing are are the in we from are the installation good that in of we really a towards from cycle. we So labor, driving metrics

Colin Rusch

the referrals question And getting you rate from are Fantastic. then Ford. conversion the second is, the of

You referrals actually sales need you guys? those or many into to percentage to turning what are for speak how of

Mary Powell

again, in process. it’s it’s Well, the -- early -- we are

I thousands right scheduled think described And when we charging literally I incredible to is between have also I bidirectional time, surprising of we -- decided I the vehicle between again, early, because want as an they to super to super there And like solar. such the are us want go not those and to same are at electric correlation XX% I the powerful. also those is, go solar which now, is drivers -- described, who it’s but customers. of for opened, customers think, currently are talking what

are to expecting uptake. see continued we So great

Colin Rusch

Perfect. Thanks a guys. lot

Operator

your question Harrison question. proceed with Piper with Kashy next Please is Sandler. from Our

Kashy Harrison

Hi. you Good thank the afternoon, for taking question. everyone. And

So I you value generation than greater noticed million. $XXX that disclosed the of target

way some also relative to to it up mentioned there is think XXXX. I the were and you in that remarks, prepared indicated you

recourse is However, debt down corporate cash net of of QX. investment million the about net from $XXX

wondering And through year? help just so if a the cash look trajectory into think half you second of you follow-up. as us the corporate have I the And could

Danny Abajian

half think the cash I corporate have consuming the large -- last working the and The think that have said enormous talked Yeah. on increased catching first cash sequentially the quarter-over-quarter, side dynamic such capital footprint year, by up for that the Yeah. getting was of installation I but call, exactly we as it might I on growth forgot the the numbers what we over the to demand. was on increased -- we

balances carry We over had increasing have chain also the we the the to mentioned supply increase -- have situations. inventory

think quarter-over-quarter, the And less I year. was through consumption working movement capital So there’s significant. been the general

Ed Fenster

And this is Ed.

I now placed run-up we case installing think interest originated trajectory the flow the we cash on well. as prior we from rates now cash that to is desires back the in cash quick performance, have kind service the that as very increased did would But we transition rates, other the one period systems of projects that originated higher meet call that continue be interest thing is during to the that generation. mention we long-term projects the to prior pricing, don’t our after for to in the to the helpful we of a

Kashy Harrison

where that because up a to unlike and are NEM now that but And maybe bunch. relative That’s the to talk my to just customer prior really deal. you follow-up, half helpful wondering maximize if as contemplate little economics, to ITC, acquisition you a strategies acquisition bit costs looking then customer costs Those customer context. the something was of is you second the long term. cetera, Vivint year, et I numbers as about in the ability not at can it’s are have control

somewhere and just levered customer generation downturn economics, improve so is XXXX? on maybe can wondering, down for rapidly bring a economy, cash those you coming the where And with rapidly improve that

Danny Abajian

Yeah. Yeah.

labor definitely, in that that So dynamics particularly would that beneficial input on or apply install be you a the I softens, are the business the about side side. talking about are economy, could the generally sales to you be equipment, as you tailwind are side, would think I And about think the on certainly the cost that a labor on over talking be time. talking the could whether economy factor

also the product. record We just have seen demand for the

consumer awareness, think to with costs. earlier. wallets adoption, go the benefits just we quarter-over-quarter, that sales We tailwinds did as in metric I see see are their dynamic that the utility else, the dynamics being creation pinched because the generally rising those Ed we our to I and upon way acquisition up rates marketing mentioned of install the and favorable just and realize that is reflecting from cost everything customer those think

You have originated should are we get or from over pricing realized and QX prior in which marketing systems the next those in also to costs some a seeing X. our sales changes, the impact period beneficial install metric upon of

Mary Powell

perspective, from dramatically are back we driving up same stronger really, would picture again, as And better, focused fundamental I faster, And we cost are customer just to to time, stack in every right? area, your Yeah, Yeah. question, the the driving XXX% add like big experience. like a in that. getting at down in

are should things improve the doing overall lot that So of around we to process simplifying continue activities other a profile. and

Kashy Harrison

you. Thank

Operator

Sophie is Karp KeyBanc. question. Please Our your from next with question proceed with

Sophie Karp

Hi. a long discussion. few It’s taking got for I the questions for been a have Good guys. afternoon you questions. and thank you

Okay.

business? low increasing the much would this the some do of -- the that at it, as curious, prefer the trying point? net should increase core in growth especially think right am assets I right? right? looking how a pretty share how targets value is customer has at looking growing XX subscriber at you So single it that guess digit, if has months, value, Or way customer towards to last, of metric it’s I just expect look that And ultimate tracked a target economics into net on, basis at value was one flat, I I call in you and been guess, we translating assets? first, you net trajectory metric And say to focus is the per the in in your to about the of earning on earning of like So what rather,

Danny Abajian

working where their as business the again, the which to financing increase the we of had quarters. And capital had as back in interest through year. to are did major write to where ultimate still was Yeah, of as working that well up responses period questions, a we we lot to higher the raise volume environment, the environment going level kind unit what the from that couple economics that for of in over impacts of my course the question. the Thanks one again, time in that mentioned, Yeah. we prior last major of there increase rates, echoing volumes of Ed

is the we also burdened have through see the SK the metric. talked also investment The you metric related So impacts also by about.

Sophie Karp

should see kind metric level growth… eventually, of So recover to about we of to that more

Danny Abajian

Yeah.

have a So modest the seen and yeah, QX QX. pickup between -- we

period, So growth been has in a the resumption there metric. in most of recent the

Sophie Karp

Yeah.

Okay. And then I have follow-up. a

So and we and up. talked real energy such, about utility right, inflation rate mode costs

question. my Here’s

most in fuel issue the utility moderation by large sales growth see customers prices, see recently actually and any the that so presumably underwritten of risk we utility to decline the is, a say, least the the we the versus softens, some your if in corresponding spike energy degree, of there that and will at happens? rate. in most Is moderate, prices that energy negative we recent a if Let’s economy rate could or spike driven -- the So seen the right? rates have

Mary Powell

Sorry, could question? the repeat part last you of your

Sophie Karp

If it a more rates the of most high or energy environment. paying say, because even [inaudible] recent underwritten utility in maybe possible your is that savings economy, they rate solar cost come prices, in were savings let’s softening because with down versus installation no the the customers would energy the or see negative crush some

Mary Powell

Yeah.

Sophie, Mary. Yeah. No. it’s

perspective, of short is a years. driver of what are uptake, that’s right, the rate absorbed of the are base think former rate process like, you as are investment recent of in but XX seeing you utility Fundamentally through for a to Again, also the big drivers just my cost yeah, rates. answer. make I utility of seeing really were fundamentally you a billions executive fundamental from the -- what its of lot fuel a way dollars of part being that needs costs

of think climate seeing change major and about transmission and from creating, spending seeing in are both utility California, You perspective. effects also fires and as a are you are of distribution in, again, levels I like, markets droughts different a the we unprecedented like

higher labor You are costs. also seeing much

are term. so even seeing some having fundamentals driving really hard of if fundamentals in change, I -- short like are time take am the a that those years seeing that change which that be You many what would

about a way the to literally work of system. like talking things through their are that decade sort take You

utility is upticks but see to negatively purported So if be the quickly in mean time the in feed take shake the countervailing an their in certain power you where in long just right? pass-throughs, temporary, positively rates customers really or you just see are those right? see the incredibly So stability. -- price or fuel certain positive Then being other states going country through. trends, that more had I to affect prices they to core where would regions adjusters, parts is it and the you even reality of as there’s of that where huge may context you

cost It’s knowing knowing a just that’s the be is really of savings about period given want. is honestly, It of much this of to important again, time. as our what as the essential what customers service to for a going isn’t big So the part about stability. it going really and what be that’s

want know, lot dynamics. So to if to of don’t I I you that? I know think add there’s a something Ed,

Ed Fenster

things few Yeah. I There a to are wanted add.

in as in Utilities wholesale late the is doubled. rise costs, the So costs Mary incurring for in this half nationwide CapEx instance, X.Xx energy as even as power extravaganza. the why, This recent over power is before there background, CapEx Arizona, much are costs depreciation. fell in decade retail while mentioned,

a efficiency of In of there addition, up side, the kind someone the of rate through is said, on cases. CapEx to like usually plug a experiment a costs because yet power if They fuel with utilities lot finds able retail have already That in go made savings they operating have increases been not experienced. to cost approved get hole. because pass even that the

and rate months in actually capital on in in you last term seen is seen only of really the increases energy procurement, increases from increases. and long-term haven’t impact in of increases the So you utilities spot costs the kind that small have What long X in portion fuel operating the market. costs, buy

this there price of And increases. the this And huge giant snake terms digest background, in so animal also that has increase. in is have happening still then to the you CapEx got

they the even or projections the that are rate that for if years, decline continue double best double digit think -- you increase I close selling. wholesale will So to digit retail saw for be best moderate increases or to prices

Mary Powell

and And bidirectional with on fundamentally, talked around, are of do smart much it’s with we utilities a has the in have part with become operate storage, done creating having radical lot, our we assets an we company collaboration so charger how of Ford the why opportunity work work like many grid and are, valuable we to around Because a going particularly really doing the the with forward. work this solar we for reasons one load. essence, controllable have access to the

more play could So much effectively. critical grid of cost country, as and operate the utilities around the role and grid more devices helping really, in we transportation really operators a we electrify

Patrick Jobin

think questions we think if are And I quick question can just we we Operator, are more and folks to I of one time. and do have squeeze to going out maybe we two try in

Operator

Curator Fund. with Niewood comes Please with question. proceed question from next David Our your

David Niewood

and my power proposition question. storage to question. a application. being storage solar The quick service value solar and guess, plus taking backup for Thanks expanded being EV guys. home just customers rapidly Very bidirectional plus I energy has from to whole energy Hi plus

on a how very upsell to base would expanded acquisition a customer what a hope given about I costs was for value mean -- somewhat existing amorphous have potential clear. that the customer previously. that that think to is you offering? captures have large and And thought should akin that something we installed renewal customers You the refinancing question or of or contract renewing

Mary Powell

a very you. question It’s focused actually are you one because, right. we are again, Thank great Yeah. on and

well positioned. really are We

I needs larger. make system absolutely mean, two for clean see And help some many system opportunity their their cases, customers We we seen sizes. acting around technologies electric well. market. existing that transformation already the we the XXX%, them We already actually have are that already customer right, products a where as in can customers, energy vehicle as increased company are to bringing that their definitely opportunity with We bring to and see new to of

again, that opportunity stay we fact X but their existing serve, growth of about years. to in the home, on a rapid also So lot continue also customers the deepen to number our of just And interesting in to not that the with and relationship it’s our what, enrich customers we average, see customers. think

cases picked new again a existing customer the homes. are of their new have because a customer many up with customer cases, we in an So seeing they home we becomes already where bought then new

expansion So of customers really more future. affordable, independent being beloved, lot endless. it’s our a trusted I relationship talk that obsession that partner minds. energy opportunities get clean, them again, limitless helping in why in the and in customer our to for all across They about smarter And the that’s are America

Ed Fenster

we customers, We we yet that, would we storage think one would those And in market But our the opportunity add enormous. we marketed constraints given expect that constraints while for support there’s and retrofit particularly in to tested as it I there. to really some enormous have -- battery haven’t thing the of that, supply. a relieve, interest, is

Mary Powell

XXX%.

Operator

from Our question. final with with comes proceed Osha Please your question Joseph Guggenheim.

Unidentified Analyst

end. here wanted on you [ph] for if Hi. at And the could a to me give Joe. This quickly actually I us thanks cycle particularly And adoption of of kind how we that is see just bringing better storage. for through kind rate. in real just rates has happen touch Hilary squeezing to what times, and where might work are you attach install for sense those quickly as down and stronger on

Danny Abajian

supply if for the for it the so storage, have the batteries. question. of that we think at Thanks Yeah. look demand Yeah, outpaces far we I

the far rate -- customers. look volume storage been the our So at the outpacing the overall robust, like business. growth growth in in we if has That

I think amount for number attach don’t our the But been we increasing robust have -- battery pretty exact relative pace in I in available. overall the supply the if teens. at look of me, installations rate, front at somewhere number the the a of it’s also have to volumes

robust been a pressure the attach the So and rate, the that’s customers downward units number been pace. but putting pretty have of on physical growing at

Mary Powell

Yeah.

said, we As customers largest of one providers. the again, storage we have XX,XXX and with

that, loosen capabilities highlighted think incredible again, of are sort see already, want provider storage, in with in country. in mind the go the to and just happened customers market go as to to tightening customers customers, there’s that No the existing many I as my with so Ed up. storage again, the back we, there doubt actually opportunity largest that’s free up

So tremendous upside opportunity for us.

Operator

our also conference. Q&A session This this and concludes concludes today’s

your time disconnect for participation. this you your lines at thank and may You we