SunPower's Q1 loss shrinks on high demand for home solar

Residential solar system by SunPower. Image by SunPower Corp.

SunPower Corp (NASDAQ:SPWR) narrowed its first-quarter GAAP net loss from continuing operations to USD 2.2 million (EUR 2.1m) following a boost in revenues as the pace of deployments grew amid rising demand for solar products.

The solar technology and energy services provider said on Thursday that it entered the second quarter with a record backlog and pipeline as more homeowners turn to solar as a source for a more sustainable power supply. SunPower expanded its client base with 16,500 new customers, or 40% more than a year earlier, and brought the total number of residential customers to 443,800. Its order backlog jumped by 169% in annual terms.

At USD 350.3 million, GAAP revenue from continuing operations increased both sequentially and on a yearly basis, helped mainly by the growth in the residential segment. More details about the company’s first-quarter financial performance from continuing operations are available in the table.

Amounts in USD million	Q1 2022	Q1 2021
GAAP revenue	350.3	240.1
GAAP gross margin	20.6%	19.1%
GAAP net profit (loss)	(2.2)	(47.1)
Non-GAAP revenue	336.1	237.9
Non-GAAP gross margin	21.7%	22.2%
Non-GAAP net profit (loss)	2.9	10.2
Adjusted EBITDA	11.2	18.8
Residential customers	443,800	363,000

SunPower reiterated its 2022 forecast, expecting to book adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) of USD 90 million-110 million. Residential customer volume is still seen to rise by 73,000-80,000 customers.

"In the first half of the year, you'll see us investing heavily in our platform to sustain strong customer demand and ensure our ability to capture the nation's growing interest in home solar,” said CFO Manavendra Sial. He added that the company is on track to meet its full-year guidance, with the results from the abovementioned investments seen to be visible towards the second half of the year and beyond.

(USD 1.0 = EUR 0.953)

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