NASDAQ$RUN

Sunrun Inc. · Q1 2024 earnings

Q1 2024 earnings · · Investor relations

Briefing

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.

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.

Headline financials

Total Revenue

$458M

Previous: $590M-22.3%
EPS

-$0.40

Previous: -$1.12+64.3%
Total customers

957.3K

Previous: 829.7K+15.4%
Subscriber additions

22.1K

No prior period
Solar capacity installed (MW)

177

No prior period
Storage capacity installed (MWh)

207.2

No prior period
Storage attachment rate

50.0%

No prior period
Net earning assets

$5.25M

No prior period
Cash generation

-$311K

No prior period
Subscriber value

$45.5K

No prior period
Creation cost per subscriber

$39.2K

No prior period
Net subscriber value

$6.25K

No prior period
Networked solar capacity (MW)

6.9K

Previous: 5.9K+16.2%
Networked storage capacity (GWh)

1.532

No prior period
Capital Expenditures

-$4M

Previous: -$4M+0.0%
Free Cash Flow

-$91.8M

Previous: -$244M+62.4%
Net Income

-$87.8M

Previous: -$240M+63.5%
Operating Income

-$183M

Previous: -$228M+19.6%
Cash & Equivalents

$487M

Previous: $629M-22.5%
Total Assets

$20.8B

Previous: $19.7B+5.6%
R&D Expense

$12.1M

No prior period
Stock-Based Comp

$28.9M

Previous: $28.3M+2.1%

Revenue & EPS history

Sunrun · Revenue · Quarterly

$458M

Q1 2024-22.3%vs Q1 2023
Beat estimate in 8 of 15 quarters(53%)
ActualEstimate

Revenue by segment

Sunrun · $563M total across 2 segments · Q3 2023

  • Customer agreements
    $317M+16.7%
  • Energy systems & sales
    $247M-31.6%

Forward guidance

Sunrun provided guidance for the full year 2024 and the second quarter of 2024.

Tailwinds

  • 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.

Headwinds

  • 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.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2024

Historical avgQ1 2024

-0.7%

Avg return

Earnings day

-2.1%

Avg return

5 days after

+1.4%

Avg return

30 days after

53%

24 / 45 earnings

Positive

+22.0%

Q1 2018

Best reaction

-35.0%

Q4 2025

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-4.7%+7.5%-0.7%
Q4 2025-35.0%-40.4%-38.3%
Q3 2025-16.0%-4.8%-13.9%
Q1 2025+15.0%+61.0%+15.2%
Q4 2024-8.3%-12.8%-24.9%
Q3 2024-14.0%-18.2%-11.1%
Q2 2024+10.8%+8.2%+16.5%
Q1 2024+5.3%-2.2%+14.2%
Q4 2023-19.6%-28.4%-28.6%
Q3 2023+8.3%+6.6%+48.6%
Q2 2023+0.3%-8.4%-17.4%
Q1 2023-13.0%-11.5%-3.8%
Q4 2022-1.4%-2.5%-24.9%
Q3 2022+13.9%+2.5%+42.5%
Q2 2022+2.0%+9.4%+0.6%
Q1 2022+8.9%-8.1%+16.7%
Q4 2021-12.4%-15.1%+25.4%
Q3 2021-3.6%-4.0%-31.5%
Q2 2021-8.4%-6.3%-13.8%
Q1 2021+7.7%-6.0%-2.5%
Q4 2020+0.0%+2.8%-8.7%
Q3 2020+6.9%-0.8%+6.9%
Q2 2020-7.9%-0.8%+20.1%
Q1 2020+4.2%+9.9%+41.1%
Q4 2019-7.5%-6.7%-51.1%
Q3 2019-4.6%+1.9%-1.8%
Q2 2019+0.1%-14.5%-19.7%
Q1 2019-7.3%-14.6%-2.4%
Q4 2018+2.4%-0.1%-9.8%
Q3 2018-2.9%-4.1%+7.6%
Q2 2018-7.0%-7.9%-14.2%
Q1 2018+22.0%+15.5%+34.6%
Q4 2017-6.1%-0.7%+38.1%
Q3 2017+6.5%+3.6%-2.2%
Q2 2017-3.0%-6.2%-2.8%
Q1 2017+2.0%+0.1%+10.4%
Q4 2016-0.6%-5.9%+1.3%
Q3 2016+6.7%+2.5%+22.1%
Q2 2016+19.3%+16.7%+16.1%
Q1 2015+3.3%
Q1 2016+3.8%
Q4 2015-4.4%
Q3 2015+4.6%
Q4 2014+0.5%
Q2 2015+1.0%
Q3 2014
Q2 2014
Q1 2014

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