As PV Tech had previously highlighted, US residential solar installer Vivint Solar was focusing on higher profit markets over market share gains in 2017 as it rebuilt its business, primarily in its sales activities resulting in installations flat-lining in 2017. 

Vivint Solar installations missed the lower-end of guidance at approximately 45 MW in the fourth quarter, down from second and third quarter installs of 47MW per quarter. 

Unit PV installations also declined to 6,467 in the reporting quarter, down from 7,076 in the third quarter of 2017.

The company did increase the total quarterly bookings quarter-on-quarter as its revamped sales operations built momentum. New booking were 55MW in the fourth quarter, up from 53MW in the previous quarter. 

Despite the quarterly installation metrics flat all year and lower than each quarter of 2016, Vivint Solar increased revenue significantly year-on-year. The company reported total revenue in 2017 of US$268 million up from US$135.1 million in 2016, a 98% increase. 

Total installations were 183.8MW in 2017, down from 222.2MW in 2016 and 230.8MW in 2015.

The revenue increase was based on a range of changes made to its sales and operations that was intended to target profitable projects over market share gains.

The company also reported a gross profit of US$37.7 million in 2017, compared to a US$38.8 million gross profit loss in 2016.

Although management acknowledged challenges in the residential market in 2017 and recovering from a mass exodus of sales personnel, management highlighted in the latest earnings call that it would return to growth in 2018.
 
Although only guiding a further decline in installations to around 40MW in the seasonally weaker first quarter, growth was expected in the second quarter onwards. 

David Bywater, CEO of Vivint Solar said in the earnings call: “Despite getting off to a slow start, the strong trends over the past six to seven weeks have fortified my belief that we will have a strong second quarter and return to growth on a full year basis in 2018. We now have the foundation for growth and strong unit economics which will benefit Vivint Solar over the coming years.”