Greetings WeFunder Shareholders,
Q3 was a wild rocket ship ride for Powur. Our company has continued to explode in front end sales, solar installations, internal employees, solar consultants, and installers. To be blunt, we did not expect to be growing as fast as we are in 2020.
Clearly the Powur Business model has proven innovative in the solar industry, as we have confirmed we are the fastest growing solar company in the united states for 2020, and there's a good chance the fastest growing residential solar company in the world. We are incredibly inspired by the results of our business model, and working around the clock to continue to improve on our core product, team, and strategy.
All of this growth has not come without a cost, Q3 was the first quarter we hit our first true "scale" challenges. We simply grew so fast, both our internal operational model and external installation capacity was not quite ramped up for the volume of sales we were achieving. We have rapidly corrected this.
We brought on a very seasoned COO to the company, Dean Rosenberg, who's a long time Powur board member, investor, and successful entrepreneur selling his previous company for $35M. Dean has been an enormous boost to the overall team, but that was just the start. We've hired almost 50 new employees in the same time period, including a new director of solar operations, 6 regional operations managers, and over 25 project managers, financial specialists, and more. We've also tripled the size of our technology team and are ramping up to make investments in every aspect of the business to continue this momentum forward.
The prospects for 2021 are looking very good, as there is still huge demand for residential solar while the Solar Investment Tax credit is guaranteed. I predict that as we shore up our customer and consultant experience, which was weakened by the extreme growth, we will continue to see organic growth and the viral nature of the Powur model ramping up.
With that said, let's dive into some of the high level numbers:
Powur booked $1,172,900 in net profit for Q3, which was lower than expected due to the bottleneck of installation capacity. As we work on improving throughput, we expect to see net profit increase as net profit is fundamentally tied to our throughput percentages vs our fixed cost stack.
We are also aggressively investing money into growing the business. Our philosophy is that we would like to put net profit into key areas where the company can continue to innovate advantages and out perform competitors. The goal of the business right now is not to maximize net profit, it's to use net profit to make investments that keep getting us bigger, bigger, and bigger.
In Q3 we saw cash growth of 110.4%, representing $7,107,084 added to the balance sheet. The Powur AP model is producing substantial cash, which we do expect to decline as our largest partners are now requiring more security given the increasing size of AP. We expect cash flow to begin to slow as our payment terms get condensed.
However, there is still sizable cash and the company is developing the skill of how to invest this cash to continue momentum, and there are several strategic areas of focus.
In Conclusion:
Q3 has been an extremely difficult quarter. These numbers were not achieved without substantial bloodshed, and I'm very proud of all members of the Powur team, consultants, installers, and employees who have been shouldering the enormous pressure of rapidly growing this organization.
Thankfully, we learn very quickly. And starting Nov 1st we implemented Operations Model 2.0 which uses a decentralized hierarchy that we believe is the right model to scale the company to thousands of installations per month. Stay tuned as we will have more to report at the end of Q4.
The next focus for us is to simple become the BEST installer in the industry, meaning a phenomenal user experience for our Customers, Consultants, and key installation partners. When we achieve that, I am confident we will be in a position to grow our breakthrough model into being the #1 residential solar installer in the world. Frankly, I will consider anything less a failure.
Wish us luck, and if you know talented people, send them our way to join the team!
To the top,
Jonathan Budd
Powur CEO / Founder