2024-02-22 12:37:06 ET
Sunnova Energy International Inc. (NOVA)
Q4 2023 Earnings Conference Call
February 22, 2024 08:00 AM ET
Company Participants
Rodney McMahan - Vice President-Investor Relations
John Berger - Chairman & Chief Executive Officer
Robert Lane - Executive Vice President & Chief Financial Officer
Conference Call Participants
Philip Shen - ROTH MKM
Praneeth Satish - Wells Fargo
Tanner Di Lello - Bank of America
Brian Lee - Goldman
Ben Kallo - Baird
Joseph Osha - Guggenheim Partners
Mark Strouse - JPMorgan
Kashy Harrison - Piper Sandler
Sophie Karp - KeyBanc
Pavel Molchanov - Raymond James
William Griffin - UBS
Donovan Schafer - Northland Capital Markets
Maheep Mandloi - Mizuho
Dylan Nassano - Wolfe Research
Ameet Thakkar - BMO Capital Markets
Presentation
Operator
Thank you for your patience everyone. The Sunnova Fourth Quarter Full Year 2023 Earnings Conference Call will begin shortly. [Operator Instructions] Good morning and welcome to Sunnova’s Fourth Quarter and Full Year 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 McMahan, Vice President, Investor Relations at Sunnova. Thank you. Please go ahead.
Rodney McMahan
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 as described in our slide presentation, earnings press release, and our 2023 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, Sunnova’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.
John Berger
Good morning and thank you for joining us. 2023 proved to be a formidable test for the residential solar industry. Macroeconomic challenges and a rapidly evolving landscape meant that companies who are unable to adapt and tackle these challenges head-on have struggled or exited the market. While this unfortunate reality for some may have caused apprehension and generated negative headlines. It also presents a silver lining of reduced competition for adaptable companies like Sunnova.
We stand apart in this regard, fortified by our scale, robust balance sheet, agility and forward-thinking approach, enabling us to not only weather this storm but pick up market share and expand margins in the process. The past few weeks we have seen encouraging signs of improved market dynamics beginning to emerge. Tighter risk premiums reflected in our recent securitizations coupled with an uptick in overall market demand as we transition beyond the seasonally softer period for customer originations, paints a more optimistic picture than many perceive.
To better position Sunnova for the rest of 2024 and beyond, we have continued to increase our focus on cash generation by pursuing additional margin expansion, exploring potential asset sales and rapidly implementing cost-cutting measures. To achieve cost savings, we are continuing to implement a range of initiatives, primarily focused on automation-driven efficiencies. This strategic approach will enable Sunnova to sustain growth without expanding its headcount.
Additionally, we’ve initiated an immediate pause in spending related to select growth initiatives such as international expansion. While these initiatives are temporarily on hold, we will remain committed to revisiting them in the future contingent upon improved market conditions and an improved valuation of Sunnova's equity.
Factoring in these cost reductions, we now anticipate our revised cost structure will result in a decrease of at least 20% in total adjusted operating expense per customer in 2024....
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Sunnova Energy International Inc. (NOVA) Q4 2023 Earnings Call Transcript