Sunnova Energy International Inc.

Good morning and welcome to Sanovo's third quarter 2021 earnings conference call. Today's call is being recorded and we have allocated an hour for prepared remarks and question and answer. At this time, if you would like, I would now like to turn the conference over to Rodney McMahon, Vice President of Investor Relations. Please go ahead, sir.

Thank you, operator. Before we begin, please note during today's call we will make forward-looking statements that are subject to various risks and uncertainties that are described in our slide presentation, earnings press release, and our 2020 Form 10-K. Please see those documents for additional information regarding those factors that may affect these forward-looking statements. Also, we will reference certain non-GAAP measures during today's call. Please refer to the appendix of our presentation as well as the earnings press release for the appropriate GAAP to non-GAAP reconciliations and cautionary disclosures. On the call today are John Berger, Sanova's Chairman and Chief Executive Officer, and Robert Lane, Executive Vice President and Chief Financial Officer. I will now turn the call over to John. Good morning, and thank you for joining us.

Today I'm pleased to report another quarter of strong results to reaffirm our 2021 guidance and to officially initiate our 2022 guidance. Slide 3 summarizes the growth in Synovus customers, battery attachment, and dealer network. In the third quarter, we added over 14,000 customers, double the number added in the same quarter last year. This growth is notable not just for its magnitude, but for the optionality it creates. Each new customer Sunova adds presents the opportunity for additional revenues in the future as we continue to broaden our service offerings. Sunova's battery attachment rate and origination now stands at 30%, up from 19% in the fourth quarter of 2020. Improved equipment availability has contributed to this steady improvement in our battery attachment rate. We are encouraged by the progress our equipment partners have made in delivering energy storage systems over the past several weeks and months, which has helped alleviate supply chain constraints. This is great news for the ever-increasing number of homeowners seeking reliable power service. Our growth remains powered by over 700 dealers, sub-dealers, and new homes installers strategically located across the 33 U.S. states and territories. Our dealer growth is driven by the strength of Sanova's business model, our best-in-class technology platform, and our brand's growing ability to deliver strong lead generation to our dealers. Lastly, On this slide, we have updated our information on customer contract life and expected cash inflows. As of September 30th, 2021, the weighted average contract life remaining on our customers' contracts equaled 22.4 years, and expected cash inflows in the next 12 months has increased to $330 million. On slide four, we provide a summary of our Q3 2021 financial results. Adjusted EBITDA, the principal and interest we collect on solar loans, adjusted operating cash flow, and recurring operating cash flow. Our financial results have shown strong growth over the past three years, and as I will discuss later in the call, we expect that trend to continue. Slide five outlines our unique and unparalleled service commitment to customers. Launching first in select key markets, we have established a goal well beyond that of any other residential energy service provider. to provide service within 72 hours for our solar-only customers and within 24 hours for our solar plus storage customers. This responsiveness, when combined with the resilience of our storage product offering, amounts to a superior energy experience for customers who are frustrated with the increasing cost and decreasing reliability they experience with a monopoly power provider. We will accomplish this goal by accelerating the build-out of our software platform, continue to build up our highly experienced and professionally managed service team, and continuously improve our logistics capabilities. This unprecedented service commitment will allow us to provide our customers with the power to live life uninterrupted. In time, it is our goal for the Sonoba name to be synonymous with the best energy service in the world. Slide six illustrates our expansive, customer-centric vision for the future, the Sunova Adaptive Home. With the adaptive home, our customers will have the option when it comes to staying connected to the centralized grid or not, an option many are already seeking in the wake of increased power outages and the rising cost of centralized power. We are working to achieve a service offering above what a traditional utility can provide, a service offering that integrates solar power, battery storage, possible secondary generation, electric vehicle charging, and energy control and management technologies, which will give consumers unparalleled energy reliability and capabilities for their homes. What will further differentiate Sanova will be our ability to integrate multiple technologies from multiple manufacturers into a single software and service interface. Our vision for increased customer touchpoints and engagement impacts our forward-looking outlook, which is increasingly more constructive on growth. Slide 7 updates expected growth in both net contracted customer value, or NCCV, and services provided on a per-customer basis. Currently, we provide an average of 3.5 services per customer, which equates to approximately $10,000 of NCCV generated per customer. We anticipate both metrics to increase over time, as it is only natural the number of services per customer and the NCCV from those services increases as the technology and cost continue to improve. We estimate by 2025 we'll be providing an average of seven services per customer. This, in turn, should increase the amount of NCCV per customer into the range of $18,000 to $20,000 of NCCV per customer. Last quarter, we noted we are seeing significant opportunities in grid services. Today, we have 10 grid service programs in place with an estimated value of at least $67 million over the next 20 years and a pipeline with the potential for an additional $445 million in value. Turning to slide 8, we are unveiling our intermediate term major metric growth plan. We have dubbed this the triple-double-triple plan. This plan consists of the following. A doubling of our estimated year-end 2021 customer count by year-end 2023. A doubling of our estimated year-end 2021 NCCB per share by year-end 2023. a doubling of our estimated year-end 2021 services sold per customer by year-end 2025, and a tripling of our estimated 2021 full-year adjusted EBITDA together with our principal and interest we collect on solar loans for full-year 2023. Our expectation is that our plan will assist shareholders in understanding how management anticipates creating value for shareholders over the coming quarters. I will now hand the call over to Rob.