Sunnova Energy International Inc.

Good morning, and welcome to Sunova's first quarter 2023 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, I would like to turn the conference over to Rodney McMahon, Vice President, Investor Relations at Sunova. Thank you. Please go ahead.

Thank you, Operator. Before we begin, please note during today's call, we will make forward-looking statements that are subject to various risk and uncertainties that are described in our slide presentation, earnings press release, and our 2022 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, Synovus 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.

The robust demand for our energy services, as described on our previous earnings calls, has persisted throughout the balance of the first quarter and into the month of April. This strong demand can be attributed to our ability to offer customers more affordable energy, higher reliability, and exceptional customer service relative to the centralized power of monopolies. Our commitment to providing a superior energy service sets us apart as industry leaders. We provide responsive and reliable service to our valued customers, utilizing cutting-edge technologies to efficiently manage energy supply and demand through our Synova software platform, which powers our seamless Synova Adaptive Home, Synova Adaptive Business, and Synova Adaptive Community service experiences. Through our new National Operations Command Center, we are reimagining the way energy is delivered, consumed, and serviced. Our industry-leading service capabilities give us real-time data for the solar and solar-plus storage systems we manage, allowing us to monitor and optimize these systems to ensure maximum efficiency and reliability. We are also focused on bolstering our highly experienced and professionally managed service team, while improving our logistics capability to meet the robust demand for our service and repair business. Our command center is a significant step forward in our ability to deliver a better energy service at a better price that meets the unique needs of each customer and drives progress towards powering energy independence. Quarter over quarter, we continue to deliver exceptional value to our customers and shareholders while driving increased revenue, reducing loss of capital, and enhancing our brand. We have built our energy as a service business model around these objectives, and we strive to ensure that the power flows at the reliability and price point our customers expect. Our dedication to providing exceptional service to our growing customer base is a key differentiator from our peers, and we will continue to invest in our technological, operational, and logistical capabilities to improve the quality and response time of the energy service we provide. Indeed, customers who have invested in solar and battery systems for their homes are starting to question the necessity of staying connected to the outdated and unreliable grid, especially as monopoly utilities raise their rates nationwide. In contrast to the centralized utilities, we are proud to offer our customers even greater savings through a more resilient, reliable, and sustainable energy service. On slide three is a summary of our financial metrics for the first quarter. On our fourth quarter call, we noted that we expected to capture approximately 10% or $53 million of our full year 2023 adjusted EBITDA together with the principal and interest we collect on solar loans in the first quarter. We exceeded that target by $13 million through increased Sanova Repair Services gross margins, lower than budgeted operating costs, and outperformance on loan repayments. Slide four showcases the continued growth in Sanova's customers, total solar power generation under management, battery penetration, and expected cash inflow over the next 12 months. During the first quarter, we placed 30,100 customers into service, which brought our total customer count as of March 31, 2023, to 309,300 and brought our total solar power generation under management to 1.95 gigawatts and megawatt hours under management to 801. These first quarter customer additions represented a 97% customer growth rate compared to the same quarter last year. Included in our customer count are cash sale customers originated through our new homes business and our service only customers who have either benefited from Sanova Repair Services or purchased a Sanova Protect plan. We expect this customer class to generate approximately $1,000 of adjusted EBITDA per customer annually over an average contract life remaining of 17 years. Our strong customer additions to start the year, coupled with continued robust customer origination, gives us both the confidence and visibility needed to increase our customer additions guidance for 2023 by 10,000 customers at the midpoint. Additionally, our battery penetration rate continues to grow and reach 15.6% as of March 31st, 2023, inclusive of over 2,857 battery retrofits we have performed live today. Finally, we have updated our customer contract lives and expected cash inflows. As of March 31st, 2023, the weighted average contract life remaining on our customer contracts equals 22.2 years and expected cash inflows from those customers over the next 12 months increased to $553 million, an increase of 37% from March 31st, 2022. I will now hand the call over to Rob, who will walk you through our financial highlights.