US residential solar installer Sunnova has recorded a reduced adjusted EBITDA year-on-year of US$28.1 million for the second quarter of 2023 although its revenue increased by 13.2%.
Sunnova posted US$28.1 million in the adjusted EBITDA for Q2 2023, decreasing from US$39.7 million or by 29.2% in Q2 2022. Sunnova said the decrease was primarily due to a lower gross margin contribution from inventory sales to its dealers or other parties and an increase in spending related to higher than expected growth.
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The adjusted EBITDA for the six months ended on 30 June 2023 was US$42.6 million, down from US$52.2 million for the same period in 2022.
The company said its net loss increased to US$100.8 million in Q2 2023, from only US$13.8 million in Q2 2022. The higher net loss was due to an increase in interest expense and higher general and administrative expenses.
Despite this, Sunnova’s revenue in Q2 increased to US$166.4 million or by 13.2% year-on-year. The company said with an increased focus on direct sales of additional services to existing customers, there was an increased number of solar energy systems in service and an increase in service revenue. Revenue increased to US$328.1 million, or by US$115.3 million, for the six months ended on 30 June 2023.
Sunnova added more than 39,000 customers in Q2 2023, bringing the total customer count to 348,600 as of 30 June 2023.
“We are rapidly achieving scale as evidenced by another record number of customers placed into service in Q2. This impressive customer growth is a testament to our commitment to providing exceptional service and meeting the needs of our expanding customer base,” said William Berger, founder and CEO of Sunnova.
Looking forward, Sunnova expects that its customer additions will increase from between 125,000 and 135,000 to between 135,000 and 145,000 for this year. The adjusted EBITDA for 2023 will be between US$235 million and US$255 million.
Regarding the number of markets, Sunnova is planning to expand to 55 markets in the US by the end of 2024, up from more than 40 now.