Sunrun S-1 Analysis (NASDAQ:RUN)

Exchange: NASDAQ

Proposed Symbol: RUN

Co-CEOs: Edward Fenster & Lynn Jurich

Offer Amount: $250 mm

No. of Shares to be sold in IPO: 17.9 mm

No. of Shares Outstanding: 96.9 mm

Price Range: $13-15

Mkt Cap at Midpoint of Proposed range: $1.358 bn

Expected IPO Date: 08/05/15

Description from S-1: “We provide clean, solar energy to homeowners at a significant savings to traditional utility energy. After inventing the residential solar service model and recognizing its enormous market potential, we leveraged our first-mover advantage to build out the infrastructure and capabilities necessary to rapidly acquire and serve customers in a low-cost and scalable manner. Today, our scalable operating platform provides us with a number of unique advantages. First, we are able to drive distribution by marketing our solar service offerings through multiple channels, including our diverse partner network and direct-to-consumer operations. This multi-channel model supports broad sales and installation capabilities, which together allow us to achieve capital-efficient growth. Second, we are able to provide differentiated solutions to our customers that, combined with a great customer experience, we believe will drive meaningful margin advantages for us over the long term as we strive to create the industry’s most valuable and satisfied customer base.”

Underwriters:

• Lead Underwriter: Credit Suisse, Goldman Sachs, Morgan Stanley
• Co-Managers: BofA Merrill Lync, RBC Capital Markets, KeyBanc Capital Markets, SunTrust Robinson Humphrey

Competitors: SolarCity, Sungevity, SunPower, SunEdison, Real Goods Solar, Clean Power Finance

Revenue (fiscal year ended December 31):

• 2013 = $54.740 mm
• 2014 = $198.557 mm

R & D Expenses:

• 2013 = $9.984 mm
• 2014 = $8.386 mm

Sales & Marketing Expenses:

• 2013 = $22.395 mm
• 2014 = $78.723 mm

Customers:

• 2013 = 48,998
• 2014 = 73,113

Cash: $105.473 mm

Total Assets: $2.016555 bn

Line of Credit: $48.675 mm

Other Notes

• Based in San Francisco, CA
• Founded in 2007
• Grew customer base from less than 2,000 in 2009 to 73,000 in 2014
• Sunrun is a United States-based provider of residential solar electricity and solar power services for homeowners.
  • Most similar companies are Solar City (SCTY), SunPower (SPWR), Sungevity (Private), and SunEdison (SUNE)
  • SCTY has seen is stock climb 583% since its December 2012 IPO.
• Total funding = $682 mm
• Investors: Sequoia Capital, Accel Partners, Foundation Capital, Madrone Capital Partners