Reports Q4 revenue $53.6M, consensus $40.37M. "In 2022, we continued to build a leading integrated solar solutions platform across our core regional markets, while continuing to advance our business transformation strategy," stated Gaylon Morris, CEO. "During the fourth quarter, our Residential Solar segment delivered strong year-over-year growth in new installations, revenue, originations and backlog, as recent investments in our direct sales force have contributed to significant, ongoing market share gains. Our direct sales channel represented a record 27% of fourth quarter revenue, up from 5% in the prior-year period. Since the Solcius acquisition in 2021, we’ve increased our direct sales force to more than 600 representatives, positioning us to drive above-market originations growth. By year-end 2023, we expect our direct sales channel will represent approximately half of our annual sales. Rising electricity prices continue to drive increased solar adoption, particularly in California, which represented more than 40% of total sales in 2022. While long-term demand fundamentals remain intact, our fourth quarter originations were negatively impacted by rising interest rates and economic uncertainty, conditions which persisted into early Q1. We have taken targeted action to curb the impact of higher financing costs on the pace of solar adoption across our customer base. These actions include the addition of new loan providers, together with solar power purchase agreement options, which will materially lower the total cost of ownership for consumers. While many Americans continue to face a rising cost of living, including rising monthly utility bills, we expect homeowners will continue to pursue solar power to reduce or eliminate their utility bills, while becoming energy independent. We believe the recent passage of the Inflation Reduction Act will provide an important tailwind for the domestic solar industry beginning in 2023. As detailed in the legislation, the solar industry will have unprecedented access to both production and investment tax credits for domestic manufacturing across the solar supply chain over the next decade, providing significant incentives and visibility for consumers. We believe solar adoption rates will accelerate as the market is fully educated on the significant financial incentives afforded by the IRA."
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