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Mar 31, 2024
Sunrun Q1 2024 Earnings Report
Sunrun's Q1 2024 financial results were reported, exceeding the high-end of Q1 guidance for storage and solar installations. The company focused on a storage-first, margin-focused strategy, achieving record storage attachment rates and strong net subscriber values.
Key Takeaways
Sunrun reported its Q1 2024 financial results, which exceeded expectations for both storage and solar installations. The company's storage-first strategy led to record storage attachment rates. They are reiterating their cash generation guidance for the year.
Storage attachment rates reached 50%, with 207.2 Megawatt hours installed during the quarter, a 192% year-over-year increase.
Solar Energy Capacity Installed was 177 Megawatts in Q1, reaching 6.9 Gigawatts of Networked Solar Energy Capacity.
Net Earning Assets increased to $5.2 billion, including $783 million in Total Cash.
The company is reiterating its Cash Generation guidance of reaching an annualized level of $200 million to $500 million in Q4.
Sunrun
Sunrun
Sunrun Revenue by Segment
Revenue by Segment
Customer Agreements and Incentives Revenue
CapyFin.comSolar Energy Systems and Product Sales Revenue
CapyFin.com Forward Guidance
Sunrun provided guidance for the full year 2024 and the second quarter of 2024.
Positive Outlook
- Storage Capacity Installed is expected to be in a range of 800 to 1,000 Megawatt hours the full-year 2024, representing approximately 40% to 75% growth year over year.
- Storage Capacity Installed is expected to be in a range of 215 to 225 Megawatt hours in the second quarter of 2024, representing approximately 105% to 115% growth year over year.
- Total Value Generated is expected to grow by over 10% for the full-year 2024 driven by higher Subscriber Values and lower input costs.
- Management is reiterating guidance of positive Cash Generation cumulatively from 4Q 2023 through 4Q 2024.
- Management expects to reach an annualized Cash Generation run-rate of $200 million to $500 million in the fourth quarter of 2024.
Challenges Ahead
- Solar Energy Capacity Installed is expected to be in a range reflecting a decline of 15% to flat growth for the full-year 2024, a reduction from prior guidance.
- Solar Energy Capacity Installed is expected to be in a range of 190 to 200 Megawatts in the second quarter of 2024.
- Total Value Generated is expected to grow by over 10% for the full-year 2024 driven by higher Subscriber Values and lower input costs, a reduction of 5% from our prior guidance.
- The company transition to tax credit sales and away from traditional tax equity structures caused them to invest approximately $181 million in working capital in Q1.
- Low-income ITC adders for eligible systems have been delayed, which represents $30 million of expected Cash Generation for systems installed in Q1.
Revenue & Expenses
Visualization of income flow from segment revenue to net income