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Enphase Energy, a global energy technology company and the world’s leading supplier of microinverter-based solar and battery systems, announced financial results for the fourth quarter of 2023, which included the summary below from its President and CEO, Badri Kothandaraman.
Enphase Energy reported quarterly revenue of $302.6 million in the fourth quarter of 2023, along with 50.3% for non-GAAP gross margin. The company shipped 1,595,677 microinverters, or approximately 660.1 megawatts DC, and 80.7 megawatt hours of IQ® Batteries.
Financial highlights for the fourth quarter of 2023 are listed below:
Quarterly revenue of $302.6 million
GAAP gross margin of 48.5%; non-GAAP gross margin of 50.3%, with net IRA benefit
Non-GAAP gross margin of 41.8%, excluding net IRA benefit of 8.5%
GAAP operating loss of $10.2 million; non-GAAP operating income of $65.6 million
GAAP net income of $20.9 million; non-GAAP net income of $73.5 million
GAAP diluted earnings per share of $0.15; non-GAAP diluted earnings per share of $0.54
Free cash flow of $15.4 million; ending cash, cash equivalents, and marketable securities of $1.70 billion
Enphase Energy’s revenue and earnings for the fourth quarter of 2023 are provided below, compared with the prior quarter:
(In thousands, except per share and percentage data)
GAAP Non-GAAP
Q4 2023 Q3 2023 Q4 2022 Q4 2023 Q3 2023 Q4 2022
Revenue $ 302,570 $ 551,082 $ 724,652 $ 302,570 $ 551,082 $ 724,652
Gross margin 48.5 % 47.5 % 42.9 % 50.3 % 48.4 % 43.8 %
Operating expenses $ 156,893 $ 144,024 $ 153,741 $ 86,551 $ 99,027 $ 87,718
Operating income (loss) $ (10,231 ) $ 117,989 $ 156,960 $ 65,587 $ 167,593 $ 229,389
Net income $ 20,919 $ 113,953 $ 153,753 $ 73,474 $ 141,849 $ 212,389
Basic EPS $ 0.15 $ 0.84 $ 1.13 $ 0.54 $ 1.04 $ 1.56
Diluted EPS $ 0.15 $ 0.80 $ 1.06 $ 0.54 $ 1.02 $ 1.51
Enphase Energy’s revenue and earnings for the fiscal year 2023 are provided below, compared with the prior year:
(In thousands, except per share and percentage data)
GAAP Non-GAAP
FY 2023 FY 2022 FY 2023 FY 2022
Revenue $ 2,290,786 $ 2,330,853 $ 2,290,786 $ 2,330,853
Gross margin 46.2 % 41.8 % 47.1 % 42.6 %
Operating expenses $ 612,647 $ 526,334 $ 382,115 $ 303,724
Operating income $ 445,741 $ 448,261 $ 697,210 $ 690,292
Net income $ 438,936 $ 397,362 $ 613,241 $ 647,424
Basic EPS $ 3.22 $ 2.94 $ 4.50 $ 4.78
Diluted EPS $ 3.08 $ 2.77 $ 4.41 $ 4.62
Total revenue for the fourth quarter of 2023 was $302.6 million, compared to $551.1 million in the third quarter of 2023. Enphase Energy’s revenue in the United States for the fourth quarter of 2023 decreased approximately 35%, compared to the third quarter of 2023. The revenue in Europe decreased approximately 70%, compared to the third quarter of 2023. The declines were primarily the result of reduced shipments to manage high inventory at the distribution partners along with a further softening in demand.
Enphase Energy’s non-GAAP gross margin was 50.3% in the fourth quarter of 2023, compared to 48.4% in the third quarter of 2023, driven by increased net IRA benefit. The non-GAAP gross margin, excluding net IRA benefit, was 41.8% in the fourth quarter of 2023, compared to 45.8% in the third quarter of 2023, driven by product mix. The non-GAAP operating expenses were $86.6 million in the fourth quarter of 2023, compared to $99.0 million in the third quarter of 2023. The non-GAAP operating income was $65.6 million in the fourth quarter of 2023, compared to $167.6 million in the third quarter of 2023.
Enphase Energy exited the fourth quarter of 2023 with $1.70 billion in cash, cash equivalents, and marketable securities and generated $35.5 million in cash flow from operations in the fourth quarter of 2023. The capital expenditures were $20.1 million in the fourth quarter of 2023, compared to $23.8 million in the third quarter of 2023. Capital expenditure requirements decreased due to a reduction in the U.S. manufacturing spending.
In July 2023, the Board of Directors approved a share repurchase program with authorization to purchase up to $1.0 billion of shares of the common stock. In the fourth quarter of 2023, Enphase Energy repurchased 1,183,246 shares of their common stock at an average price of $84.51 per share for a total of approximately $100.0 million.
Enphase Energy started shipping IQ8P™ Microinverters with peak output AC power of 480 W for the small-commercial market in North America, and grid-tied residential applications in South Africa, Mexico, Brazil, and India. The company introduced IQ8™ Microinverters into more countries in Europe – Austria, Italy and Belgium. Enphase Energy’s newest product, the IQ8X™ microinverter with peak output AC power of 384 W for panels with high DC voltage, is shipping to customers in the United States. Enphase Energy now ship IQ8 Microinverters into 21 countries worldwide.
Enphase Energy shipped 80.7 megawatt hours of IQ Batteries in the fourth quarter of 2023. The company now ship the third generation of IQ Batteries, the IQ® Battery 5P, to the United States, Puerto Rico, Australia, and the United Kingdom. Enphase Energy launched this battery in Italy during the fourth quarter of 2023. More than 4,700 installers worldwide are certified to install the IQ Batteries.
Enphase Energy continued to release new features in Solargraf?, their cloud-based design and proposal software platform during the fourth quarter of 2023. They began offering electrical design and single line diagram features while continuing to offer NEM 3.0 functionality for solar and battery systems in California. The software platform is currently available to installers in the United States, Germany, Austria, and Brazil.
Enphase Energy shipped approximately 913,000 microinverters manufactured in the United States to customers in the fourth quarter of 2023. As part of their plan to streamline manufacturing, the company is ceasing operations at their contract manufacturing locations in Romania and Wisconsin. Enphase Energy will focus on manufacturing microinverters in the United States with the two existing contract manufacturing partners in South Carolina and Texas. Once these two U.S. sites have fully ramped production, the company expect to have a global capacity of approximately 7.25 million microinverter units per quarter, of which 5 million units of capacity will be in the United States.
Business Highlights
On Jan. 29, 2024, Enphase Energy announced that it started shipping IQ8HC™ and IQ8X Microinverters with peak output AC power of 384 W designed to seamlessly pair with a full range of solar modules up to 540 W DC.
On Jan. 23, 2024, Enphase Energy announced that it started shipping IQ8 Microinverters in Belgium, with peak output AC power of 384 W, to support newer, high-powered solar modules.
On Dec. 13, 2023, Enphase Energy announced that it is expanding its support for virtual power plants (VPPs) through grid services programs across the United States powered by the IQ Battery 5P.
On Dec. 5, 2023, Enphase Energy announced the launch of the IQ Battery 5P and IQ8 Microinverters, for customers in Italy.
On Nov. 30, 2023, Enphase Energy announced that it started shipping IQ8P Microinverters, with a peak output AC power of 480 W, in Mexico to support newer, high-powered solar modules.
On Nov. 16, 2023, Enphase Energy announced the launch of its new IQ8 Commercial Microinverters, featuring the IQ8P-3P™ Microinverter which enables a peak output AC power of 480 W, for the small commercial solar market in North America.
On Nov. 13, 2023, Enphase Energy announced that it started shipping IQ8P Microinverters, with peak output AC power of 480 W, in Brazil to support newer, high-powered solar modules.
On Nov. 2, 2023, Enphase Energy announce that it started shipping IQ8 Microinverters, with peak output AC power of 384 W, in Austria to support newer, high-powered solar modules.
On Oct. 30, 2023, Enphase Energy announced the launch of IQ8 Microinverters to support high-powered modules and the IQ Energy Router™ family of devices in Switzerland. |
