SUNation Energy (SUNE) 31 Mar 232022 Q4 Earnings call transcript

Good morning, and welcome to the Pineapple Energy Fourth Quarter 2022 Conference Call.

As a reminder, today's call is being recorded. All participants are in a listen-only mode.

For opening remarks and introductions, I would now like to turn the call over to Jennifer Lee of The Blueshirt Group. Ms. ahead. go please Lee,

our Good discuss welcome quarter results me Officer. Kyle XXXX. operator. Ingvaldson, and conference Chief our and Pineapple call With Financial Udseth, are morning to for this Executive morning, you, Officer; to Eric and Energy's full-year Chief Thank the fourth

many Our risks forward-looking the to which to are future, our of Company's call considered include and statements outlook control, expectations, forward-looking cause implied those speak morning these that will These by are differ expressed which to subject or uncertainties, this statements. our statements. may beyond statements the predictions from are or materially of in which results actual

law. or any Annual disclosures to are our our except forward-looking Please regarding obliged risk We filings. factors by Form in on forward-looking other our refer update release, not SEC today's earnings and to as revise and statements XX-K statements Report required may be

the release disclosed A page yesterday. in copy measures be issued the press are website our this financial press of U.S. of posted call has the and that reconciled release Investor reference. non-GAAP found can equivalent our we to Relations for The GAAP to in been

CEO, turn With over that, Kyle the Udseth. ahead. to I'll go our Kyle, call

everyone call joining the Jenny, and Thanks, thanks to today. for us on

in Although call earnings. with conjunction spring is have and public our we last went first reported three conference this quarters,

We your call We to to to with take report. and questions. this intend quarterly excited practice are report news a each great maintain to conducting conference you

Energy launching a with Pineapple and Simultaneously, company completed Connection umbrella. a big the all Communications that started together. back makes, ambitions. traded Hawaii As look of In their XXXX, our difference first with Systems, the small March, on company. I'm We a merger year proud accomplished acquisitions, company our under technology Pineapple So bringing private huh? as a E-Gear, Inc. we year completed as what we've I publicly we

real but capital. revenue with assets and and operating life public modest, started We business,

Some them to ability we our skeptical analysts Long and source completed strategy with we but could showed proved last terms investors the deal, wrong resources when With assemble to acquisition we financial were come in close that we and to and continue that SUNation. second repeatable deals, of owners, autumn Island-based manner. to a execute, our

We deserved NASDAQ exit for XXXX more $XX sides our we the over the line run bell accomplishments. recognition year, of million I in their in late us of Celebrating this with closing of sight annually, have and rang later our operations never and a employees cash welcome positive on prospects country, both to from rate amazing the February, been operations company. for and giving XXXX. about flow revenue excited

Now company. let's in which was for the zoom a acquisition on transformational SUNation,

our growth, added it our vision of SUNation Maskin their pursue and SUNation as as lessons management tripling Scott to learned our future we strategy value now continues building one shareholders. within its proving In the utilizing XXX are largest company a and key and he His and drive dedicated employees diligence our East approximately and acquisitions. experiences expanded team. is sales, are these and in in we leader Founder President, our Coast, addition to talented to footprint meaningfully bolstered and

margin pending resulted year-over-year of XX% installations SUNation. last XXX% EBITDA year XX% XX%. expanded. experience XXXX new and new installs. roll. sourcing, negotiating, grew closing $XX in up us ultimately Executive, applying of Corporate SUNation Jim over And his of the Development. Brennan is taking residential SUNation This is starts And and SVP role, surged this backlog gross moved for with of kick sold of with for Jim Their in role expertise Pineapple his on Corporate meaningful to on kilowatts a acquisitions. million Revenue in a adjusted and

As there plenty strong for growth. room of as they are, is further

opportunity only In For huge was attach giving X% rate us margin and revenue battery a rate contrast, year, forward. approaches HEC’s XX%. going last example, battery attach

are new there we so are in accelerate Hawaii York. desires, customer initial also battery success similarities markets, those in strategy. are While to from there are needs build our and structural two many in sales we to in actively certainly cross-pollinate approach differences and working seeing Furthermore, battery New our home

in Group, we In Long North development on Hollow Baiting acquisition volume customer we Development at strategy of win an the increase February, to a outfit the has where with This Island's cost. homebuilder our Shore. efficient homes had XX an will potential substantially significant upcoming

opened the performance of it's exceptional from a Finally, SUNation. at Florida, an we in team in establishing country's solar biggest growth residential been an the one office March, All-in-all, foothold in markets.

be Turning Revenue EBITDA up permitting now is and were year, an delays and up performance that sold a to HEC this was to the XX%, XX%, and led also attach Kilowatts for service market have the Battery to those year-over-year. very context which up been faced the with performance we are sustaining adjusted for resolved. was although headwinds in XX% rate of the innovation. reaching in now outstanding increased second the year result continued strong year, decline obstacles. installations momentum of some Hawaii. through the but expenses solid, which half XX%

advanced in battery next and For are storage installing of Franklin example, the system. competitors whole we home generation ahead

Honolulu Permitting. freezing portion unrelated at permits installation federal the with performance Planning a December kilowatts in due the was that of Oahu Pineapple issues, impactful as and completely full-year of most were which Hawaii, significant of grappled was We with a the which installed of revenue Even to in growth slowed on there Department a QX variety of down. solid to in investigation,

enough, significant and many hardware other installers failures equipment certain during wasn't experienced that with vendor if we solar As quarter. the

setting HEC million year-end and of had report triple are at a fixing of installs proud sold QX that of sizable and through COGS to year, largely resumed growth kilowatts pivoted partway the our a presented these how issues for but and customers. I happy has are now to this year I'm XXXX. OpEx, these level This quickly am pending revenue earlier. focus resolved elevating challenge, in also the HEC $XX of while team back on issues

We for will us are come. a to market Hawaii years for confident that strong be

complimenting technology grid under historically of leadership And will to Chris company. E-Gear E-Gear, installation our and is the XXXX, business technology IP. productize services and Head a has Product, business, of our this push in and in small leading-edge been DeBone, we Hawaii steady but monetize our

advanced tangible with can system the that via stabilize between and time example to can that storage their this are Controller that in and most neighborhoods can licensing and homeowners the E-Gear of the the of balance outages. the enable. consumption It events to power week. in backup will services with energy and hardware electricity streams an grid storing announced extreme exciting up use opportunities savings pair Management last rates. capabilities is Eguana The home, batteries we Eguana’s Energy software grid residential the weather create maximizing date power individual agreement for face help recurring union Perhaps most as revenue grid create

distributed opportunity step Hawaiian on program. systems. are systems. Device serve agent Own resource a a We offering to our customer's management important E-Gear Electric's an leading are the under for also plants partnering supplier of dispatch based as energy technology This is pursuing Together, solar Bring we to utility upcoming, virtual with Your side power

profitable and great with and In they solar QX call optimism XXXX growth. we shortage of a of we spite nothing. for momentum. it coaster business are don't managed exciting to no platform Overall, now an the build for with exiting challenges, entered We've sustainable

of high a pipeline passionate solid cultural have on markets, parameters. delivering each candidates great a quality experience. But strong We of wide financial share across focus a of meets fits customer they these more companies importantly, which variety our residential and founder-led solar acquisition our are

growth We new months expect acquisitions and ahead. in our through the to quarters accelerate complimentary

walk I'll Eric that, to the ahead. our Eric, now CFO, go please to over With through financials. our call turn Ingvaldson,

year-ago HEC had GAAP had because contributions to SUNation I no the our Thank a operations you, quickly review will of you numbers then forma will a and numbers period the businesses. insightful and very partial because SEC of Kyle. that due by GAAP sense are timing give the we not as better financials required the some of we acquisitions. pro performance the review and The very only

with de GAAP was more $X.X the start from Gross profit XX at the quarter. net in Revenue Fourth includes quarter contribution businesses, CSI loss includes which revenue Net value gross in remeasurement contribution $XXX,XXX. fourth continuing fourth nearly operations JDL Legacy of and quarter $XX.X due from fourth in SUNation. a right SUNation. days the bit than results, tripled was liability. discontinued and fourth from operations the the of million. contingent $XX,XXX. favorable million tripled Let's the reported as $X value of operations a quarter sequentially and over Revenue XXXX loss continuing are quarter Ecessa to of profit fair million was minimis

summarize our quarter let's forma Now fourth results. pro

SUNation we SUNation SUNation Assuming E-Gear Company the revenue would have the in for full for HEC, at HEC adjusted of and XX% earlier. had Company are slightly full grown had have in comparisons XXXX the XX%. year-over-year. Kyle the quarter $XX.X HEC XXXX, and to $XXX,XXX million mentioned with to quarter and that up up declined would to decline XX% loss EBITDA due a

XXXX. loss shows be Hawaii, gives us Although would delays adjusted a positive, which EBITDA this into number going permitting in without confidence

from was XXXX and E-Gear, contribution loss million includes of to net million switch loss was and the merger includes since $X.X XX, for million. of discontinued which Revenue on XX a Let's of de from full-year minimis $X.X continuing loss XXXX. net million, operations GAAP was SUNation operations. HEC Revenue at $X.X days March and $XX,XXX. from $XX.X gross profit contributions all million, was from Total $XX.X results,

Now forma let's full-year results. summarize pro

years million Adjusted and and would and of improvement had to have SUNation XXXX up XX%. HEC grown revenue E-Gear EBITDA XX% we with the full XX%. Assuming have HEC both $XX.X an would shown for SUNation, XXXX, up company of XX%

is holders. the XXXX for and and capital were which sheet. the to balance available with to business, $XX investments, are CVR connection Maskin shape. acquisition. million is the We plan Member restricted in another We had investments, use ended $X.X and raise million. million year refinance of fund debt our business to good due in cash acquisition in for in reserved Debt Scott to Turning solar the We which majority the liquid strategy. $X.X with our Pineapple and Board Executive, Cash the approximately SUNation

Looking ahead, organic SUNation acquisitions. both to We confident attractive $XX of XXXX, and growth HEC we before we stability and E-Gear. generate $XX optimistic. million revenue and million to anticipate are expect at In at

Importantly, to half the cash of to positive flow the second we for flip the in year be positive full-year. and from expect operations

in deals our but companies we see We quarters expect of or size acquisitions growth strategy. know, as we buy, core As complete can't to you will what can are the to who, when, predict you ahead. attractive

mention one me go before Let we Q&A. to other detail

You XX-K. to SEC that Form are we election, are asking a will file today meaning XX-day see for our filing we – Form extension a XXb-XX

As can our our are closed is and number today, basically see set. books you

Our multiple the situation with a listing acquisitions, public was and complex this fourth one quarter. in being year

sale due There XX-day also quarter the presenting extension and fourth operations period. material to no filing outstanding anticipate the discontinued the are issues We within and are JDL in Ecessa. pending we of

questions. Now, any please for we would like ahead. to go open call the Operator,

[Operator Instructions] Capital Schafer line of Northland first Our proceed. from comes Please Markets. question the from Donovan

Hey Thanks questions. for guys. taking the

asking delays in want the Hawaii. I So permitting to start about

out? fourth thankfully on be guys or federal before standpoint, the third then around in there from of that really clears something and You is of quarter of that no kind other or a But and and event know around this just something the to fourth announcement a details. the unrelated comes impact was could that hit There helpful investigation, and up just And quarter then quarter specifically. the was closed an you – sort that that'd qualitative first in was you just there's going what see sort gave to things quarter. Is timing details it bogs start and then about? of any an there some

customers. team think a a unfortunate year, for for the for year of so throughout They on really it. being Certainly, Yes, of worked know I were there. incredibly I it hard and taking DeBone tremendous And Absolutely. whole it's line Chris leadership in we a situation. thanks was appreciate early care it's and Donovan. testament the out the Yes. to you,

that We’re but funnel harvesting firing backlog, cylinders. demand, a talked them was late to healthy crews, I install know unprecedented November details, find mid this. online. about all think It on don't had really you I of can late first top all to Chris the me

people it wide taking prison this. something at and FBI a solar, now it a not permitting of like just movie sting was I Honolulu bribes County. and federal think ongoing like in kickbacks there affected all island investigation, countywide least was in out including And a types from multiple of or in

was paying like just into, permits second that something a maybe through a layer, layer were allowed like up kind able people that's more top to that kickbacks or but the ramification on be were us projects home, go something to look those or complex. requires that. it, of XX% diligencing to third the to was bumped normal the The on understanding like non-standard. the be longer something bit just that older not of standard pretty ones My no are There's scandal expedited. by and overall for process. is more queue of something have Older going wiring a the XX% and XX% like of much There's are to

rightfully over okay, like, bodies following fully dotted and i's, same were jail they lock the really to five five they down, At gone I everything most And out. make so or and this – when said, things December. people literally sure certainly short-staffed. weeks – came cross think hit retirements, the the let's bit and in let's doing were and so so happened, is t's early were just It four going time,

and or January those was like XX gummed we the projects, our were think at done to it calendar get or Ultimately, install the from to were on. something before first have That thought end forward XX we permits we I able of going up. got XX year. pull XX that

something pushed install, out ready to interconnection, to so like permitted, the installations QX, was like effect go, that on of cruise XX were But schedule, net that fully funded, and like ready lot it's bottom was got eaten And there, the of line than million gross EBITDA margin. overhead to typical that all a just already because over a more your you've the revenue. $X the – is

cash over that line. and bottom million $X.X to operating would've of was it the So just fallen EBITDA

three think I it like one of a and that permitting as the awaiting four seen I or think we it's you some said, we've of and still don't of or this of a single like piece get are very I but solved like now, aspects projects are have handful, permits those silver significant down, is them. issue of lining in so think like still winding the because like ones small unclogged investigation

going to realize those And in well installs from so don't able this. which anticipate we bodes have we QX, been and forward any additional challenges

I Okay, then great. also color. That's about helpful to want super ask And ASPs.

XX%. the quarter forma CSI the know then pro of these layers year-over-year and kind you are the in was I installed forma then growth fourth legacy of there's versus for So issues growth sorry, But XX%. pro or at added growth some gave numbers kilowatts ways quarter-over-quarter rev in business there's And in everything. – the the forma results preliminary – revenue pro and

that results correct compliment just battery an watt. things things complicate per to like but if But – there's dollar doing and of that's math, that, you're implies other decline course, that my also So attachments X% ASP here.

would stuff is in and there was elevated and checking this, was kind in are with that, that really there's come behind just pricing silicon serving ASP color – this just or other markets So be of just Any mean, and poly I year-over-year decline something before if down. on it you the there that helpful.

team triangulate. and and Yes. the night, X:XX And the were of we kind same here question. looking last at things It's as how going script great through metrics a the sitting actually a about

I your the actual but that, revenue, versa, got look vice installed, the you up been or I doesn't answer by Is might to Eric's the you at short than that. at sold is kilowatt here, right? right. sheet but imply the if less look have think question if the response it kilowatts think that

when are they're think I revenue the sold, So is thing but key the the kilowatts when not is recognized installed. Yes. that

think that we're so ASP seeing And declines. I not

separate that gross stemmed of also COGS gross elevated Hawaii, there's of pressure some COVID. things, the in stuff from a of margin margin, of kind we some I think issue some fourth chain service supply quarter from and had and because kind I in think hitting

take in bit, continue there leadership so and much in demand position of continuing was – this for we I made decision year. Hawaii battery wanted share. funnel But of and that a think bonus been and solid we program to we a conscious because market in top to this that's our decided the And

I didn't But maintained aggressively margin the we just but were we went prices is specifically some so revenue the that And raise up healthy to installed as over than we delta did, think generally. went dynamic think up. maybe a you kilowatts out, as – I the more the competitors pointing could

the Okay. ask licensing about then deal. I That's And to want helpful. Eguana

release So fee guys. if around Curious can is market valuable you be technology Is an here, guys where of recall of has that to of Is correctly, it'd like that unique part mentioned, is, would and proprietary then you there's paying in some really case? Hawaii And integration kind the I other if stuff to the that the quantify E-Gear The upfront somewhat that a that market kind other some technology that all. at deal Hawaiian be you that is still licensing what is the in something the Or phenomenon? of largely correct? telecom states? there. they're

Yes.

Eguana to haven't comfortable partnership. about So the we disclosing talked that the of in don't now terms it with want and just respect financials, feel because I I

see our file amount think that's get going into I or into certain Eguana, the about starting at You the can it's you a public be approximations I you too financials on to some line haven't meaningful point much talked back QX that results amount terms. items. probably we for it. business. we to the But don't know, really of of revenue But [indiscernible] and want when E-Gear at least just

have terms past technology layer is deploy in couple to the to years. our a cabinet talking the and been of our the energy partner kind hardware, has reasons our systems and technology then deployed firmware, up been the has full It Those we then And over aggregating in and thousands was of software, such of our one, the distributed across couple the has utility. the cloud itself, been are systems. battery to because one Eguana of in things; good a place resources into majority the own Hawaii access

tested every And it's and different any interface or states and grid WiFi and consumer battery, don't our it's uses over control match there's connection capability with of a being the as able well tariff there that, proven or so the that needs services and utility device I XXXX.X standards meet IEEE many whether many to believe different across ZigBee of set standard. Bluetooth as can the program or it for

really So it's technology proven. it's and field and best-in-class in the

why hardware, other into they they firmware, and I want and a that in and and about of this the licensing with has that is the do these the Hawaii I think it's to to go that's all abroad. domestically devices had is And a is to date. applications deal that market. strategy they've best-in-class Eguana really sense, markets markets can has both able of than software pairing or energy now have broadly it majority the customize, think that some wanted far Hawaiian much control expand this this installs device beyond that management what more they to be go And to together

questions or the in, but Okay. And guess, turn jump check line, a certainly I'll are more in take in just back otherwise let there I'll people you – operator, jump other if the and have queue. in can I'll take I'll queue, other I back I questions.

either can So go way. we Operator?

Feel finish your sir. to questions now, free

Sure.

million much I'm kind of of if now Okay. million. the some XXXX, end Yes, quarter. Yes, can you so the get pretty curious, for cadence. $XX help us first the guidance we're at for to $XX

a more You I it's quarter, third of everything the peak York, override fast a Long you made third quarter, quarter, fourth comments you're and then if second or a think or and seasonality. sort that But Hawaii, in the might anyway. quarter seasons. it's seasonality And growing lot of figure around Island company New

revenue the like great. year? elaboration like be things, see to be SUNation moderation piece we fourth year would of I in just revenue any mean, bigger that'd kind sequential of given going the quarter Or maybe in the sorry, throughout still around is color improvements the So of it – like in cadence

of Quarter Yes. say I'll or and then too well, just more Eric much want that. don't is to share can going standpoint budget plan start a too. from maybe beyond

anything that supports QX million. it internally our that, think make came guidance $XX growth in towards and performance hadn't and We demand, us I both to good and those that. but the change feeling off of to it's what company's year, before, we shared haven't capture top the million $XX into about in really expecting of funnel overall own and tracking to that markets seen ability

think we that we from yes, of XXXX. mean, reset the I a a to think QX right. see throughout QX higher XXXX quarter, expect the big QX of year, standpoint, QX, from so with than that but always won't back there's being I a and QX is wouldn't seasonality I see caveat seasonality

drops So go anything sequentially every like else XXXX. Eric, to And It add that? then year. we'll But year is the every naturally I down QX you'd QX throughout good. XXXX quarter with up think seasonality on

give any on the the guidance guess on we've other can't those, wouldn't quarter do Yes. in that question, or have there. that are we line performing We we the we first outlined. with put And expectation than first feel out guidelines those I expectations

strong as quarter-over-quarter fourth expect the year. historically, as we Kyle throughout first is Regarding the growth seasonality, sequential as but quarter the do mentioned, quarter not

what But a SG&A little things, from then and transaction around other helpful. can of some anticipate say And That's or of expect of forward, should color a bit certainly we came in like Okay. you you there's going impacts SG&A. high, indications should now estimation for acquisition items of for – kind rate costs that kind so we happened, there the do what this any give in SG&A? kind one-time run have and

best Yes. way answer sure I'm the to not this.

I that probably call. line next certain need we're to pencil improvements quantifying, work the between like to synergies going now sharpen items. and we it's points And on think through on internally the basis something on

a I economies looking a are ones standpoint, you to different results. the side, businesses the of do there power there big now ways right with actively on kind thematic get lot of think from synergies initial ways, which of scale, are good we're at can purchasing like hardware some that across the

financing for of We've lot got the this which fees. is of folks in of I dealer increase side, top think mind with a relentless kind just

to rising interest who financing industry As it. work homeowners, are customers systems do pass keep guys on that as are be just the to the desire companies more profit the savings and to the much hard for not and the certainly the of of able on acquiring to passed more the rates in the installing and

you'd not, then think just just or kind looking good so instead there's like as other but a what's high corporate SG&A scale eliminating probably I too. not you of a and starting cost versus shared a and any out more that, the much. SG&A platform got you can it's level whole this So and there's don't say color kind at of scale like And have want service lot corporate economy growth into on know, to I of a you've business, to then what's like Eric, financially, growing side piece? we it It's of don't of there's that give the on redundancies there. just grow, of functions jobs as

two that we CSI, legacy to as there be we occurring that we that continue margins EBITDA would to operations our have and that for add in equipment integrate lot those leverage some divest our are segments would – anticipate service reporting you certainly Hawaii, operating there's to did due into not see we of I just truck we're that in a and I Yes. of XXXX. discontinued business believe additional calls that attained also aid roles there. do note failures, SUNation,

So specifically, throughout comment anticipate we yes, as operating gaining leverage but certainly year. continue do can't additional the

Okay. – had – kind I'm of it, the which behind SG&A, but you make not to maybe does SUNation. for $X.X And just million a know here, in guess so to – you don't is pick a on or in the you it guys partial back fourth I corner I as quarter sense into logic quarter trying

So does it that we think unusual something actually near-term? of make – lower? be would or be enough kind one-off upward would think things headed north to that does down would Or of sense where more SG&A include likely be would that that in relatively as increasing? something be to actually kind or headed just or SG&A – Just going of of that downward

I vary think it'll really depending on the quarter.

Okay.

do operating leverage is feel to As of that attained. be we though, revenue a there percentage

it. Got

helpful. is That Okay.

to kind performing healthy, strong. the yes, operating then well is kind revenue that the of of work fixed gross and with seasonality that corporate topline cost, there's the more guidance pieces that has the margin overhead businesses company but being flex the But it, and some There's there, Yes. is it's done. I think of

an the that I we just and sure more preserve anything to making SG&A. think of future if healthy eye on certainly putting forward margin that to going some improve and opportunity into then

Okay. I talk… then to And want

jump. go think to Donovan, I think probably I sorry, we Okay. –

– you think be don't see two, queue cut around to screen. your we're I'll but but if the on maybe this and go misreading thing, questions. Chip the I you get I try to if could we after off, I might

rest Absolutely. the my I'll guys. take of questions you, offline. Thank

Yes. Thanks.

Donovan. Thanks,

EF Chip of comes Hutton. the Our Please Moore from next question from proceed. line

your first question. morning. to the for Good and Kyle Welcome Hey, Eric. taking Thanks call.

around we around maybe guess to anyway follow-up margins about? in path Just but a help with about and of on the us to given I couple to on breakeven, touched sight cash you program seasonality, think particularly, permitting from moving line talked guidance, of Donovans. on some that bonus first Hawaii guess me pieces I battery

provide cash I and get year. XX-month can XX-month the terms from corporate on when going anything know is out. versus from cash on there. November then would I that acquisition minimum These to That above eyes a operating scale But more will at what is SUNation it and the got efficient sense covering period the the the flips forward, before place a subscale generate were flow you at thing don't room. we you key the I which did now like of wiggle it to cash or within cash company trend wasn't look any guess the you basis negative acquisition in that the the forward. any Eric But second think SUNation where we going in the in too And on day want us in little bit – add and we overhead. going flips collect seasonality that to is going view of where you period just going Eric, timing XXXX. to year company more of to XX-month operations. on I'll flow my effectively I on positive positive a the defer day from given once maybe or closed forward But how say, specific timing be much point, of anything invoices year, X, within there's

Yes.

threshold stronger and I the year, with the and in that we third seasonality. consistent earnings crossing kind of we stayed half our latter quarters. the fourth It's think is in anticipate the release that typically of

color would would be give. that additional So I the

Yes.

When assume. the that installation on million plus is burn? And book think how we $XX Hawaii in year seen then on called $XX and what backlog, to I I out you what that trended million need compare how And they've and sense. that makes visibility with that SUNation in the for about he million No, does that past? the Okay. $XX and and end, think

offhand, don't I that Like you I question. not? have of higher. Eric backlog the at it's we end XXXX? the but know Good was what think or Do know do

We just acquisitions, all information do that to not but… have the due

after, was sorry, think but the it's great businesses they think and years, install I can up, mean, really I I this higher. I had right? think feel top of at both we even like businesses – both funnel I but at verify

in year the and is at than and but I growth I stuff like There's same and record even there revenues kilowatts kind was in backlog the the rate pricing year-over-year. because strong time So think revenues installs, while battery even kilowatts even recent guess of higher the we were or pushing sale, were growing record through larger for think stuff installed. sold coming in backlog in there, I attach revenues

already before pre-sold is point I people that dynamic and things of much And don't confidence analysis of is it's businesses at looked giving And at it's but in then have my us the it, some fingertips, one in we've think and I businesses. really cancel than solar the that where a so is the other some that internally it anymore. residential think don't of done I our the revenue guidance gives that at different that

and customer what rates are single-digit like to sign lot know think that there are I something say plus, just down a you Our cancellation somewhere And of it's when we you the revenue the value percentages, whereas out to ask install. numbers, comes I what that right? historical to is. that we weighted of truly on going kind cancellation these think when give an based backlog, of expected rates, And it's believe that average is of I XX%

one some office, And opening the expansion, maybe helpful, another I very Florida Kyle. That's capabilities. think talked Thanks. you the were Yes. you of about on leveraging SUNation

there, and it? after go to what investment kind you how market Just you about talk need that of attacking about think maybe

college a Yes. [indiscernible] and a Eric. hockey team exciting team, it's because Hey, kind Minnesotan I'm a of SUNation a pretty few of excited which down for related our one employees. lot really think is I as vaccination about sales that there Moore, is

and to So realized of couple [indiscernible]. marketing, went and think I one New them and and effectively had York two teammates in model Island, Long a they replicate selling and or a lead down college that their gen couple who it's and of done could Florida like in recruited

that pretty last what healthy. pursuing progressing? And a just to then million you how getting segue are the negotiations that dry question, obviously talked $X take And and deals, the rest make some The the those to balance offline. that it and being maybe Perfect. my bit sheet, acquisition I'll about obligation are powder funnel, you

difficulty. minor appears stand are we having Please by. It technical a

please be we'll If stand again shortly. starting you and by could

Okay.

we does appear it So online. back are

EF Moore from Hutton. So we from will Chip question with the continue

can you sir. If please proceed,

Chip. Hey,

I'm sorry. one just I'm around… Thanks. asking has my last

ahead. go Yes, please

Thanks. Just the balance funnel sheet. and M&A

Yes.

the been Certainly by goal quarter the an and on businesses want grow organic to improvement funnel off an M&A of focused acquisition there. set eyes growth our acquisition. working doing of roughly We'd on internal continuing XXXX. growing didn't in of robust, we've the So performance margin and way and continuing a strategy existing to take of too overall

done in goal. to remains knew that four we going be But weren't to we able think I’d the to one I do in still love QX. I'd say get XXXX.

that we of there. think sizing about I Goldilocks number what's think the

to want just smaller in than the there. be of audit done, It's before not the to the and probably getting one Hawaii. don't we've margin we they do want effort say think, worth I done something contribution

that. probably So million be bigger $XX million, to $XX than needs

that CAC think like where it of kind it's bit like little more it better probably more referrals, customer growing of with integration a risk. is the fit on something is can the of at I cultural, kind integrate I efficient focus importantly, that $XX million and I $XXX maybe profitable number, think ascertained of on focus It's topline experience don't through a can this companies, it. like have million you be you batteries. think it's experience, kind better, And piece

go vision Pineapple and Pineapple think are the of talk it So together. fit there and excited bigger criteria, think that them, part about many to being when companies we and think building story are I out and they I there I the those something

states. of healthy deep we've a got think funnel. across several got pipeline that number got pretty the good we've in of a down them I of a We've been companies number that we've diligencing, So

we don't are want acquisitions the Realistically certainly year? close four I to this that's the going on if expectation set case. to

putting do but I we're think we're think have think we going I where additional don't so you think, ourselves snows capital go to and that a sun potential world, the asked it's we to have of to Sunrun think acquisitions. do the multiples together keep just to if that who sheet, think the scale I and and we're acquisitions, look and logic other acquisitions, I hand to the at on and fund looking partners balance and are compete business. when and the pretty powers the companies against cash to synergies going those the at about some would have valuations continued of acquire maybe think compelling at for look to to you got aspirational, but of raise you capital I scenario companies the I grow yes, And pushing more desire I both when for that's

Thanks the very offline. great. rest Okay, much. I'll take

you, Thank Chip.

Chip. Thanks,

proceed. comes question of Our from Please from Partners. final the Grampp Global Jeff Alliance line

Good installs, largest size of curious that's growth organic nature? me you and I XXXX do system, that for outsized guide. factors an XXXX? morning, growth, growth things components Are of and Whether squeezing of Kyle those you're that any guys in Eric. there ASP of that being the individual What be think seeing driver growth? was in. for Thanks on will the the

necessarily. Not

variability a million range, it's in – range. there's decent And gave $X still million we that it, I a amount think $X not a of right.

a but with talked are kind up contracts is that signed the of and the we of we think already, unwritten, those I year as them still likelihood lot the backlog weighted and of probability about are know those what So installing.

know it good good proportion well. in QX and line a So selling we've into we how is of going sight as of got then

ability ours is share our customer none that our right funnel of battery seen top strong right? approach sales attach the to continuing just the approach, battery continue the kind serving through think into going and go-to-market what our brand really I of better before, to it's rates performance we've in like, to of consultative just where above a markets that in components than beyond out continue win close our Hawaii improvement us combination kind York. well. than or building, our grow and different up strong and of, are think individual of of consistent leads solid, attach are way, rates I generate experience, through demand, fair keeps and New our

lever we've that And the say price far. the analytical the selling to least attention of that then probably that's way kind of comprehensive amount paid on it, so of side I'd in

think pricing the way past volume growth the and I of businesses for balanced and customers in well care about good had operating them that's value proper the with taking feeling profitability and worked of have offering. a just

taking do of and payment rising, basis exactly that keep way having go more alternative in of creates of up, customers keep in there, not think keep we a customer and I it. there so as say pricing does the of that how the a out rising monthly in probably think care I rates to few points electric there's rates rising. financing some and on and costs people we I'd probably solar, but versus terms goes we're value take what solar but upside more as Yes, focused helping just more still

the modeling I overall effect outsized So an has revenue standpoint, wouldn't any from of guide. drivers on a those say

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really that's issue not an It's impacted. been Yes.

remember main no the as when I the Sunrun the was Our That's get the space could not businesses are one issue necessarily much. batteries. really days resi old thing anymore.

module past shortages Qcells successful they be a residential up supplying us think and to to more new successfully from months, well I LG it. year years let really we pivot we and could and had across longer side have Chris scale snapping when both disruptions to We no in as We experience had year, that know U.S. the so two that. where were the in XX a the going a over in really and a much last modules. lot up LG so that panel the transition as no did heads year, the the of Hawaii enough utility of early And country having by inventory team vendor also backlog the transition and to could then panel find managed abroad. accrued

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Okay. Well, thanks guys. Well, time sounds good. the for

Thanks joining. Yes. for

Jeff. you, Thank

questions? Any

over now the I to Udseth Kyle call closing to turn for like remarks. would

Thank you, and today being the everyone engagement thanks on great to for and and questions. for the

Okay, go. we here

have Before up want mid-May. I coming to in conclude, we some Investor Relations we events mention

the Hutton at And and virtual, We Suisse one-on-one early present those in will have June, Week is are meetings and hold private in EF global firm. events New the of panel present the also a City. each for inaugural on which Credit the Conference, Utilities both and we'll Cowen Sustainability Renewables and York meetings at conferences, clients brokerage

So please register contact your meetings. sales schedule rep and to

call our up wrap now. will We

sense, excited As what we're more XXXX about the you excited can even months in and about ahead. accomplished we

team. next joining This our for forward or call with have revenue, potential have reporting substantial May. Investor concludes nationwide our call Lee for acquisitions Eric a today. team, again a and business pipeline today of Jenny look if We us to drive me, you support. a our you with contact our strong Thank management please continued in growth. any We'll progress questions, and to your And Relations at earnings

You may Thank all you. disconnect.

Thank participation. you, gentlemen. ladies does you call. and This Thank your conclude today’s for

disconnect. now may You