Sunrun Inc. (NASDAQ:RUN) Q1 2020 Earnings Conference Call - Final Transcript

May 06, 2020 • 05:00 pm ET

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Sunrun Inc. (NASDAQ:RUN) Q1 2020 Earnings Conference Call - Final Transcript

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Presentation
Operator
Operator

Good day, ladies and gentlemen, and thank you for standing by. Welcome to the Quarter 1 2020 Sunrun Inc. Earnings Conference Call.

[Operator Instructions]

It is now my pleasure to turn the conference over to Mr. Patrick Jobin.

Executive
Patrick Jobin

Thank you, operator, and thank you for those on the call joining us today, and sorry for the brief delay. Before we begin, please note that certain remarks we will make on this conference call constitute forward-looking statements. Although we believe these statements reflect our best judgment based on factors currently known to us, actual results may differ materially and adversely. Please refer to the company's filings with the SEC for a more inclusive discussion of risks and other factors that may cause our actual results to differ from projections made in any forward-looking statements. Please also note these statements are being made as of today, and we disclaim any obligation to update or revise them.

On the call today are Lynn Jurich, Sunrun's Co-Founder and CEO; Bob Komin, Sunrun's current CFO; and Ed Fenster, Sunrun's Co-Founder and Executive Chairman.

The presentation today will use slides, which are available on our website at investors.sunrun.com.

And now let me turn the call to Lynn.

Executive
Lynn Jurich

Thanks, Patrick. We are pleased to share Sunrun's first quarter results and progress against our strategic priorities. In the first quarter, we added 13,500 customers, representing 97 megawatts of deployments, a 13% year-over-year increase. We generated $81 million of net present value and created NPV per watt of $0.98 or over $7,100 per customer. We grew our base of customers 23% compared to last year, now nearly 300,000 strong.

Upon completing the initial analysis of the likely near-term impacts of COVID in March, we expressly pivoted our strategy to focus foremost on prioritizing the strength of our balance sheet, with a secondary consideration to remain in position to quickly ramp growth when appropriate. We believe this strategy is proving successful. Today, we expect the company will maintain our cash balance and generate net earning assets during 2020. But what I'm most excited about is our increased corporate metabolism, specifically the improvement in our operating pace and agility. Many of the changes we would have recently made were based on improvement initiatives that have been underway for some time. COVID simply provided a powerful catalyst. Our teams have compressed what may have been months or even years of evolution into weeks. We ramped our digital lead generation efforts rapidly, and that led to an all-time high number of digital leads in April.

We launched a successful consumer promotion inside of 2 weeks. We moved our entire field sales team to digital sales within 1 week. We changed our lead routing and improved the productivity of our sales consultants. All of these actions culminated in end of April order volumes that were at and even above pre-COVID levels. Down funnel, we have moved to drone-based site inspections in over 80% of our branches, allowing us to quickly pivot to contact-free inspections. We