Sunlight Financial Holdings, Inc.

Thank you for standing by. This is the conference operator. Welcome to the Sunlight Financial's full year 2021 earnings conference call. As a reminder, all participants are in listen-only mode and the conference is being recorded. After the presentation, there'll be an opportunity to ask questions. To join the question queue, you may press star then one on your telephone keypad. Should you need assistance during the conference call, you may signal an operator by pressing star and zero. I would now like to turn the conference over to Lucia Dempsey, Head of Investor Relations. Please go ahead.

Good afternoon and welcome to Sunlight Financial's full year 2021 earnings call. After the close of the market today, we announced fourth quarter and full year 2021 financial results and posted an earnings presentation to our Investor Relations website at ir.sunlightfinancial.com. Before we begin, I'd like to remind everyone that this webcast may contain certain statements that constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These include remarks about future expectations, beliefs, estimates, plans, and prospects. Such statements are subject to a variety of risks, uncertainties, and other factors that could cause actual results to differ materially from those indicated or implied by such statements. Forward-looking statements include, but are not limited to, Sunlight Financial's expectation or prediction of financial and business performance and conditions, and competitive and industry outlooks. Forward-looking statements speak as of the day they are made, are subject to risks, uncertainties, and assumptions, and are not guarantees of performance. Sunlight Financial is under no obligation and expressly disclaims any obligation to update, alter, or otherwise revise any forward-looking statements, whether as a result of new information, future events, or otherwise. except as required by law. The company also refers participants on this call to the press release issued by the company and filed today with the SEC, the supplemental presentation posted to Sunlight Financial's website, and Sunlight Financial's SEC filings for a discussion of the risks that can affect our business. Additionally, on today's call, we will discuss non-GAAP measures which we believe can be useful in evaluating our performance. The presentation of this additional information should not be considered in isolation or as a substitute for results prepared in accordance with GAAP. A reconciliation of these non-GAAP measures to their most directly comparable GAAP measures can be found in both our press release and the supplemental presentation. Joining me today are Matt Pateri, Sunlight Financial's Chief Executive Officer, and Barry Edinburgh, Chief Financial Officer. Matt will start with key highlights for 2021, and then Barry will provide additional detail on our fourth quarter and full year results. Matt will then provide our 2022 outlook and a quick recap of how we drive value for all stakeholders. Following these prepared remarks, we will open the call to Q&A. It is now my pleasure to turn the call over to Matt Pateri.

Thank you, Lucia. Good afternoon, everyone, and thank you for joining us today. I'm pleased to report outstanding fourth quarter and full year 2021 results. Sunlight funded $638 million of solar and home improvement loans in the fourth quarter. leading to a full year total of $2.5 billion, up 72% from the prior year. Total revenue for the year was $121 million at the top end of our guidance range, which we provided in August of 2021, driven by record high total revenue of $37 million in the fourth quarter. Both full year adjusted EBITDA of $53 million and adjusted EBITDA margin of 44% exceeded the top end of our guidance ranges as well. These results are a testament to our strong relationships with both contractors and capital providers, leading to strong year-over-year growth despite a more challenging macro environment. 2021 was a pivotal year for Sunlight operationally as well, as we demonstrated growth and success in a number of areas. Our average loan balances continue to increase, with full-year 2021 solar loans averaging over $40,000 and even up to $42,000 in the fourth quarter alone. We ended the year with a 22% battery attachment rate, up from only 13.1% in 2020. And while Sunlight's battery attachment rate will fluctuate quarter to quarter based on installer distributions, equipment availability, and other factors, we believe that battery storage will continue to provide increasing benefits to homeowners over time and that our battery attachment rates will continue to increase in the coming years as a result. Now, we're also pleased to have ended the year with more than 1,500 active contractors, a 40% increase over year-end 2020. This was primarily driven by rapid growth of our home improvement contractor network as we continue to build out that business and supported by continued expansion of our solar contractor network. I'll now turn it over to Barry to discuss our financial accomplishments in more detail.