Sunnova Energy International Inc. (NYSE: NOVA) reported Q2 EPS of ($0.30), $0.11 worse than the analyst estimate of ($0.19). Revenue for the quarter came in at $42.8 million versus the consensus estimate of $42.05 million.

Second Quarter 2020 Highlights

• Increased total customer count to 91,600 as of June 30, 2020;
• Increased storage attachment rate on origination to 34% in the second quarter of 2020;
• Closed a $158.5 million securitization of residential solar loan agreements; and
• Reaffirmed full-year 2020 guidance.

"We are proud to report another quarter of strong results and to reaffirm our 2020 guidance," said William J. (John) Berger, Chief Executive Officer of Sunnova. "Our response during the COVID-19 pandemic has demonstrated how quickly our industry can adapt to not only survive this crisis but thrive. With our expanding dealer network and rising storage attachment rate, in the second quarter we believe we grew our customer base at a rate faster than any other public U.S. residential solar and storage service company.

"Based on our current customer growth trajectory, and driven by our business model and capitalization strategy, we are experiencing significant operating leverage and are at the tipping point of achieving the scale needed to reach positive Recurring Operating Cash Flow. Overall, we are rapidly lowering our costs on a per customer basis while simultaneously growing our customer base faster than anyone else in the industry. The combination of this rapid growth, plus our ability to lower costs, is having a positive impact on cash flow and we believe will soon lead to the generation of positive Recurring Operating Cash Flow."

Mr. Berger added, "As the direct correlation between people spending more time in their homes and their increasing energy consumption continues to rise, homeowners are becoming more focused now than ever on ensuring the energy they use to power their lives is affordable, reliable, and clean. We are seeing this focus manifest itself in increased consumer appetite for our service offerings, which we are proud to report are helping power our customers' energy independence."

As of June 30, 2020, Sunnova had total cash of $184.4 million, including restricted and unrestricted cash.

2020 Guidance

Management reaffirms existing full-year 2020 guidance and introduces guidance for full-year 2020 Recurring Operating Cash Flow.

• Customer additions of 28,000 - 30,000;
• Adjusted EBITDA of $58 million - $62 million;
• Customer principal payments received from solar loans, net of amounts recorded in revenue of $32 million - $36 million;
• Customer interest payments received from solar loans of $17 million - $21 million;
• Adjusted Operating Cash Flow of $10 million - $20 million; and
• Recurring Operating Cash Flow of $(20) million - $(5) million.

“We continue to have a high level of confidence in achieving our 2020 financial targets as our business model provides excellent visibility into future results,” added Mr. Berger. “This visibility is reflected in the fact 95% of the mid-point of our 2020 targeted revenue and principal and interest from solar loans is locked in through existing customers as of June 30, 2020."

For earnings history and earnings-related data on Sunnova Energy International Inc. (NOVA) click here.