Pineapple Energy, Inc. (NASDAQ: PEGY) is engaged as a growing solar, storage and services provider, which operates a robust portfolio of brands: SUNation, Hawaii Energy Connection, E-Gear, Sungevity and Horizon Solar Power. Shares of the energy company are rallying 36% through early trading on Tuesday, November 15, 2022. Over the past three months, Pineapple Energy has seen average daily volume of 6.23 million shares. However, volume of 36.07 million shares or dollar volume of around $113.98 million, has already exchanged hands through early trading.
Shares of Pineapple Energy are surging after the company reported third quarter 2022 financial results. During Q3 2022, the energy company reported revenue of $7.71 million, which represents quarter-over-quarter growth of 31%. Gross profits increased to over $2.01 million, which was a growth of 58% from Q2 2022. On a bottom line basis, Pineapple Energy reported a net loss of $2.52 million, compared to net income of $1.44 million during Q2 2022.
The company’s Hawaii operations saw a robust surge in activity during Q3 2022 compared to the same period last year. Pineapple Energy says it saw sales growth in kilowatts sold jump by 105% and battery capacity sales growth of 107%, compared to the third quarter last year. The company was busy with installations during the quarter, which saw kilowatt installations up 37% and battery capacity install growth of 52%. Meanwhile, customer acquisition cost per watt plummeted 62%, which is great news for the energy services company.
The financial results largely do not take into account the recently completed acquisition of SUNation, which is a New York-based company that installs solar and battery energy systems for residential and small commercial customers. The acquisition was completed on November 9, 2022 and is slated to add significant growth to Pineapple Energy. Over the past trailing twelve months, SUNation has generated sales of $48 million.
Pineapple CEO Kyle Udseth: “The SUNation acquisition fundamentally transforms Pineapple, launching us on our path of intended growth. SUNation triples our current revenue run rate, and opens a large new geography for us in the Northeast U.S. We now have an even stronger team, an expanded service offering, and are starting to show our potential for national scale. As important, this deal demonstrates our ability to execute our acquisition-driven growth strategy. With each new acquisition, we fortify our track record, making subsequent deals easier to source and close, and making capital more accessible at lower cost. We believe the SUNation deal establishes our ‘street credibility’, showing the world that Pineapple is an emerging force in our industry.”
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