• Sunrun is attracting new customers at an ever-increasing rate.
  • The renewable energy developer sees an increase in profits due to price hikes.

What’s going on with Sunrun stock 

Sunrun stock was rising by over 18% on Thursday. This happened as the residential solar company announced their excellent growth metrics from the third quarter.

Why we care

Sunrun (NASDAQ:RUN) gained 35,760 new customers this quarter, for a total of 759,937 by the end of September. The renewable power provider saw a 21% increase compared to last year’s numbers for this period. CEO Mary Powell stated in a press release:

“Sunrun’s energy subscription model, which can deliver clean energy technology and innovation that is more affordable and reliable for customers, is particularly well suited for this economic environment.”

In the third quarter, Sunrun installed 255.8 megawatts of solar energy capacity. This number has a 17% growth compared to last year’s numbers.

The company gained 25,468 subscribers in the third quarter, amounting to a total subscriber base of 639,748 by September’s end. Furthermore, annual revenue from subscribers grew 23% and reached $969 million.

Interestingly, price increases helped increase each subscriber’s net value by 68% sequentially and 74% year over year. Chief financial officer Danny Abajian stated:

“The actions we took throughout the year to respond to higher interest rates and material costs have resulted in strong improvements in our net subscriber value, which exceeded our prior guidance.”

To sum it up, Sunrun’s earnings per share rose to $0.96, more than eight times the original amount.

What now

Sunrun predicts that its net subscriber value will continue to grow in the fourth quarter. Additionally, next year the firm expects solar energy capacity installed growth to be around 25%.

The Inflation Reduction Act, which offers solar power solution providers like Sunrun tax credits, was recently passed and is likely to positively affect Sunrun’s business.

(Visited 16 times, 1 visits today)