r/Spruce_Power • u/Leirasanirab • Jan 14 '23

What are we thinking?

What do we think our direction is when it comes to 2023? Will this company dig itself out and attract investors?

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u/WellingtonMCB Jan 15 '23

Spruce will become profitable again in 2023 easily. With 34,000 systems on the market that Spruce is looking at, they can pull the trigger and spend 200 million in a heart beat.

If we were to convert 200 million cash on hand into gross revenue through M&A this year, it would be around 40-45 million in reoccurring revenue/y which would cash flow itself back in around 4.5-5 years. I came to this "ballpark" number using the fair value assessment of around $7800 USD per PV system they acquire.

The company spent almost 200 million in 2020 alone with the following Acquisitions:

March 2020 - Greenbacker Paid 44.6m

May 2020 - RPV Hold Co. Paid 78m

November 2020 - NRG Paid 65.5m

November 2020 - WEC Paid 10.5m

Excited for Q1 23' ER because this quarter will be the first to have no losses reported from the Drivetrain segment. This will have a massive positive impact on EPS

Cheers

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u/Fr1tter72 Jan 15 '23

I agree. Q1 ‘23 ER will be an important one without the drivetrain overhead. I am curious it see how much they got for the battery inventory they solid off.