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How Have Vivint Solar’s Segments Performed in Recent Quarters?

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Operating leases and incentives

As discussed earlier in this series, Vivint Solar (VSLR) reports its revenue under the Operating Leases and Incentives and Solar Energy System and Product Sales segments. Vivint Solar reported $61.15 million in revenue from Operating Leases and Incentives segment for fiscal 2015 compared to $21.68 million during fiscal 2014.

The cost of revenue came in at $131.21 million in fiscal 2015 compared to $67.98 million in fiscal 2014. These costs are inclusive of depreciation of the cost of the solar (TAN) energy systems and the amortization of capitalized initial direct costs. Other major costs include design, installation, and interconnection costs of solar energy systems which are not capitalized.

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Solar Energy System and Product Sales segment

During fiscal 2015, revenues from the Solar Energy System and Product Sales segment came in at $3.03 million compared to $3.57 million in fiscal 2014. Revenue from this segment showed a consistent decline during fiscal 2015.

However, the costs of revenue marginally decreased from $1.99 million in fiscal 2014 to $1.76 million in fiscal 2015. As a result, the gross margin of this segment declined on a year-over-year basis.

Vivint Solar’s overall revenue

Vivint Solar reported $64.18 million in consolidated revenue for fiscal 2015 compared to $25.25 million during fiscal 2014. The consolidated costs of revenue for fiscal 2015 came in at $132.97 million compared to $69.97 million during fiscal 2014.  Vivint Solar’s lower 4Q15 revenue was due to lower installations that weighed on its fiscal 2015 revenue and marginally missed analysts’ revenue estimates of $68.23 million.

Vivint Solar competes with Sunrun (RUN), SolarCity (SCTY), Sungevity, and downstream operations of SunPower (SPWR) for its market share.

In the next few parts of this series, we’ll discuss Vivint Solar’s key financial data.

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