- Preliminary second quarter GAAP Net Loss of ($30) million, Adjusted EBITDA of approximately ($3) million
- Preliminary second quarter customer growth of 20,400 new customers
- Preliminary second quarter Revenue of $464 million, 11% higher year-over-year
- Reduced 2023 outlook for customer growth and Adjusted EBITDA
SunPower Corp. (SPWR), a leading solar technology and energy services provider, provided preliminary unaudited financial results for the second quarter ending July 2, 2023.
"Demand in the second quarter has weakened more than expected in the Southeast and Southwest where macroeconomic uncertainty and higher interest rates have slowed our top-of-funnel lead generation and sales bookings," said Peter Faricy, SunPower CEO. "To quickly adapt to prevailing market conditions and help ensure SunPower maintains its competitive edge, we are reducing our cost structure. Although we've seen improvements in sales growth in June and July, we've made the decision to reduce our labor costs and are taking additional measures to improve operational efficiency across the board. We believe that these actions will position the company for success as market conditions improve."
Updated 2023 Guidance
FY 2023 GUIDANCE
Net Loss (GAAP): ($90) million - ($70) million
Residential Customers: 70,000 - 90,000
Residential Adjusted EBITDA/Customer1: $1,450 - $1,650
Adjusted EBITDA2: $55 million - $75 million
- Excluding Platform Investment, which is primarily Product, Digital, and Corporate Operating Expense.
- Adjusted EBITDA guidance for FY 2023 includes net adjustments that increase GAAP net loss guidance by approximately $145 million primarily relating to the following adjustments: stock-based compensation expense, restructuring charges, mark-to-market (gain) loss on equity investments, net, amortization of intangible assets and software, interest expense, depreciation, income taxes, and other non-recurring adjustments.
The company reduced 2023 guidance for GAAP net loss to ($90) million-($70) million.
To accurately reflect its assessment of current and near-future customer demand as well as its mitigating actions to reduce cost structure, the company has reduced its 2023 customer guidance to 70,000–90,000 incremental customers, noting that more than 70% of the projected installations in the second half of 2023 are already accounted for through the execution of existing backlog. This includes the expected recognition of all California NEM 2.0 backlog by year-end and stronger than expected New Homes bookings.
Guidance for Adjusted EBITDA per customer before platform investment was reduced to $1,450-$1,650 to reflect installation costs that are higher than anticipated, as well as the effects of lower market pricing and higher levels of inventory carried this year following the supply chain disruptions of 2022.
The company also expects to reduce Platform Investment to $50 million-$70 million for the year.
Guidance for Adjusted EBITDA for the year was reduced to $55 million-$75 million.
