Enphase Energy Reports Financial Results for the Third Quarter of 2024
Enphase Energy (ENPH) reported Q3 2024 financial results with revenue of $380.9 million, up from $303.5 million in Q2 2024. The company shipped 1,731,768 microinverters (730.0 megawatts DC) and 172.9 megawatt hours of IQ® Batteries. Key highlights include:
- Non-GAAP gross margin of 48.1% with net IRA benefit
- GAAP net income of $45.8 million; non-GAAP net income of $88.4 million
- GAAP diluted EPS of $0.33; non-GAAP diluted EPS of $0.65
- Free cash flow of $161.6 million
U.S. revenue increased 43% quarter-over-quarter, while European revenue decreased 15%. The company ended Q3 with $1.77 billion in cash and marketable securities. For Q4 2024, Enphase expects revenue between $360.0-$400.0 million and non-GAAP gross margin of 49.0-52.0% with net IRA benefit.
Enphase Energy (ENPH) ha riportato i risultati finanziari del terzo trimestre 2024 con un fatturato di 380,9 milioni di dollari, in aumento rispetto ai 303,5 milioni di dollari nel secondo trimestre 2024. L'azienda ha spedito 1.731.768 microinverter (730,0 megawatt DC) e 172,9 megawattora di batterie IQ®. I principali punti salienti includono:
- Margine lordo non-GAAP del 48,1% con beneficio netto IRA
- Utile netto GAAP di 45,8 milioni di dollari; utile netto non-GAAP di 88,4 milioni di dollari
- EPS diluito GAAP di 0,33 dollari; EPS diluito non-GAAP di 0,65 dollari
- Flusso di cassa libero di 161,6 milioni di dollari
Il fatturato statunitense è aumentato del 43% rispetto al trimestre precedente, mentre il fatturato europeo è diminuito del 15%. L'azienda ha chiuso il terzo trimestre con 1,77 miliardi di dollari in liquidità e titoli negoziabili. Per il quarto trimestre 2024, Enphase prevede un fatturato tra i 360,0 e 400,0 milioni di dollari e un margine lordo non-GAAP del 49,0-52,0% con beneficio netto IRA.
Enphase Energy (ENPH) reportó los resultados financieros del tercer trimestre de 2024 con ingresos de 380.9 millones de dólares, un aumento desde los 303.5 millones de dólares en el segundo trimestre de 2024. La compañía envió 1.731.768 microinversores (730.0 megavatios DC) y 172.9 megavatios-hora de baterías IQ®. Los aspectos destacados incluyen:
- Margen bruto no-GAAP del 48.1% con beneficio neto IRA
- Ingreso neto GAAP de 45.8 millones de dólares; ingreso neto no-GAAP de 88.4 millones de dólares
- EPS diluido GAAP de 0.33 dólares; EPS diluido no-GAAP de 0.65 dólares
- Flujo de caja libre de 161.6 millones de dólares
Los ingresos de EE. UU. aumentaron un 43% de un trimestre a otro, mientras que los ingresos europeos disminuyeron un 15%. La compañía terminó el tercer trimestre con 1.77 mil millones de dólares en efectivo y valores negociables. Para el cuarto trimestre de 2024, Enphase espera ingresos entre 360.0 y 400.0 millones de dólares y un margen bruto no-GAAP del 49.0-52.0% con beneficio neto IRA.
Enphase Energy (ENPH)는 2024년 3분기 재무 결과를 보고했으며, 매출 3억 8천 90만 달러로 2024년 2분기의 3억 3천 50만 달러에서 증가했습니다. 회사는 1,731,768개의 마이크로인버터 (730.0 메가와트 DC)와 172.9 메가와트시의 IQ® 배터리를 출하했습니다. 주요 하이라이트는 다음과 같습니다:
- 비 GAAP 총 마진 48.1% 및 순 IRA 혜택
- GAAP 순이익 4천 580만 달러; 비 GAAP 순이익 8천 840만 달러
- GAAP 희석 주당 순이익 0.33 달러; 비 GAAP 희석 주당 순이익 0.65 달러
- 자유 현금 흐름 1억 6천 160만 달러
미국 매출은 분기 대비 43% 증가했으며, 유럽 매출은 15% 감소했습니다. 회사는 3분기를 17억 7천만 달러의 현금 및 유가증권으로 마감했습니다. 2024년 4분기에는 Enphase가 3억 6천만에서 4억 달러 사이의 매출과 49.0-52.0%의 비 GAAP 총 마진을 예상하고 있습니다.
Enphase Energy (ENPH) a rapporté les résultats financiers du troisième trimestre 2024 avec des revenus de 380,9 millions de dollars, contre 303,5 millions de dollars au deuxième trimestre 2024. La société a expédié 1 731 768 micro-onduleurs (730,0 mégawatts DC) et 172,9 mégawattheures de batteries IQ®. Les points saillants comprennent :
- Marge brute non-GAAP de 48,1 % avec avantage net IRA
- Bénéfice net GAAP de 45,8 millions de dollars ; bénéfice net non-GAAP de 88,4 millions de dollars
- BPA dilué GAAP de 0,33 dollar ; BPA dilué non-GAAP de 0,65 dollar
- Flux de trésorerie disponible de 161,6 millions de dollars
Les revenus américains ont augmenté de 43 % par rapport au trimestre précédent, tandis que les revenus européens ont diminué de 15 %. La société a terminé le troisième trimestre avec 1,77 milliard de dollars en liquidités et en valeurs mobilières négociables. Pour le quatrième trimestre 2024, Enphase s'attend à des revenus compris entre 360,0 et 400,0 millions de dollars et une marge brute non-GAAP de 49,0-52,0 % avec avantage net IRA.
Enphase Energy (ENPH) hat die finanziellen Ergebnisse für das 3. Quartal 2024 bekannt gegeben, mit Einnahmen von 380,9 Millionen Dollar, im Vergleich zu 303,5 Millionen Dollar im 2. Quartal 2024. Das Unternehmen hat 1.731.768 Mikrowechselrichter (730,0 Megawatt DC) und 172,9 Megawattstunden IQ®-Batterien ausgeliefert. Zu den wichtigsten Highlights gehören:
- Non-GAAP-Bruttomarge von 48,1% mit Netto-IRA-Vorteil
- GAAP-Nettogewinn von 45,8 Millionen Dollar; Non-GAAP-Nettogewinn von 88,4 Millionen Dollar
- GAAP-diluted EPS von 0,33 Dollar; Non-GAAP-diluted EPS von 0,65 Dollar
- Freie Cashflows von 161,6 Millionen Dollar
Die US-Einnahmen stiegen im Quartalsvergleich um 43%, während die europäischen Einnahmen um 15% zurückgingen. Das Unternehmen schloss das 3. Quartal mit 1,77 Milliarden Dollar in bar und handelbaren Wertpapieren. Für das 4. Quartal 2024 erwartet Enphase Einnahmen zwischen 360,0 und 400,0 Millionen Dollar sowie eine Non-GAAP-Bruttomarge von 49,0-52,0% mit Netto-IRA-Vorteil.
- Revenue increased to $380.9 million in Q3 2024, up 25.5% from Q2 2024
- U.S. revenue grew approximately 43% quarter-over-quarter
- Non-GAAP gross margin improved to 48.1% in Q3 2024 from 47.1% in Q2 2024
- Free cash flow of $161.6 million generated in Q3 2024
- IQ Battery shipments increased to 172.9 megawatt hours, up from 120.2 megawatt hours in Q2 2024
- Cash, cash equivalents, and marketable securities reached $1.77 billion
- European revenue decreased approximately 15% quarter-over-quarter
- Non-GAAP gross margin excluding IRA benefit decreased to 38.9% in Q3 2024 from 41.0% in Q2 2024
- Q4 2024 revenue guidance of $360.0-$400.0 million suggests potential sequential decline
Insights
Enphase Energy's Q3 2024 results show mixed signals. Revenue increased
The non-GAAP gross margin improved slightly to
Positively, free cash flow remained strong at
For Q4 2024, Enphase projects revenue between
Enphase's Q3 results reflect the complex dynamics in the solar market. The U.S. recovery is encouraging, with distributors normalizing inventory levels. However, the
The company's strategic focus on innovation is evident with the launch of AI-based software for energy optimization and new product introductions like the IQ Battery 5P. These initiatives position Enphase well for future growth, especially as energy markets become more complex.
The expansion of IQ8 Microinverters to new markets and the introduction of NACS connectors for EV chargers demonstrate Enphase's adaptability to market trends. The company's investment in U.S. manufacturing, driven by IRA benefits, is strategically sound but impacts gross margins when excluding these benefits.
While near-term challenges persist, Enphase's strong cash position and continued R&D investments provide a buffer. The company's ability to navigate the transition to its fourth-generation energy system and capitalize on emerging opportunities in grid services and VPPs will be important for long-term growth.
FREMONT, Calif., Oct. 22, 2024 (GLOBE NEWSWIRE) -- Enphase Energy, Inc. (NASDAQ: ENPH), a global energy technology company and the world’s leading supplier of microinverter-based solar and battery systems, announced today financial results for the third quarter of 2024, which included the summary below from its President and CEO, Badri Kothandaraman.
We reported quarterly revenue of
Financial highlights for the third quarter of 2024 are listed below:
- Quarterly revenue of
$380.9 million - GAAP gross margin of
46.8% ; non-GAAP gross margin of48.1% with net IRA benefit - Non-GAAP gross margin of
38.9% , excluding net IRA benefit of9.2% - GAAP operating income of
$49.8 million ; non-GAAP operating income of$101.4 million - GAAP net income of
$45.8 million ; non-GAAP net income of$88.4 million - GAAP diluted earnings per share of
$0.33 , non-GAAP diluted earnings per share of$0.65 - Free cash flow of
$161.6 million ; ending cash, cash equivalents, and marketable securities of$1.77 billion
Our revenue and earnings for the third quarter of 2024 are provided below, compared with the prior quarter:
(In thousands, except per share and percentage data)
| GAAP | Non-GAAP | ||||||||||||||||||||||
| Q3 2024 | Q2 2024 | Q3 2023 | Q3 2024 | Q2 2024 | Q3 2023 | ||||||||||||||||||
| Revenue | $ | 380,873 | $ | 303,458 | $ | 551,082 | $ | 380,873 | $ | 303,458 | $ | 551,082 | |||||||||||
| Gross margin | 46.8 | % | 45.2 | % | 47.5 | % | 48.1 | % | 47.1 | % | 48.4 | % | |||||||||||
| Operating expenses | $ | 128,383 | $ | 135,367 | $ | 144,024 | $ | 81,612 | $ | 81,706 | $ | 99,027 | |||||||||||
| Operating income | $ | 49,788 | $ | 1,799 | $ | 117,989 | $ | 101,411 | $ | 61,080 | $ | 167,593 | |||||||||||
| Net income | $ | 45,762 | $ | 10,833 | $ | 113,953 | $ | 88,402 | $ | 58,824 | $ | 141,849 | |||||||||||
| Basic EPS | $ | 0.34 | $ | 0.08 | $ | 0.84 | $ | 0.65 | $ | 0.43 | $ | 1.04 | |||||||||||
| Diluted EPS | $ | 0.33 | $ | 0.08 | $ | 0.80 | $ | 0.65 | $ | 0.43 | $ | 1.02 | |||||||||||
Total revenue for the third quarter of 2024 was
Our non-GAAP gross margin was
Our non-GAAP operating expenses were
We exited the third quarter of 2024 with
In the third quarter of 2024, we repurchased 434,947 shares of our common stock at an average price of
We shipped 172.9 megawatt hours of IQ Batteries in the third quarter of 2024, compared to 120.2 megawatt hours in the second quarter of 2024. We are now shipping our third generation of IQ Batteries, the IQ® Battery 5P™, to the United States, Puerto Rico, Mexico, Canada, Australia, the United Kingdom, Italy, France, the Netherlands, Luxembourg, and Belgium. More than 9,000 installers worldwide are certified to install our IQ Batteries, compared to more than 7,400 installers worldwide in the second quarter of 2024.
During the third quarter of 2024, we shipped approximately 1,176,000 microinverters from our contract manufacturing facilities in the United States that we booked for 45X production tax credits. We began shipping IQ8HC™ Microinverters with higher domestic content, produced at our contract manufacturing facilities in the United States. We expect to begin shipping our commercial microinverters, and batteries with higher domestic content, produced at our United States contract manufacturing facilities in the fourth quarter of 2024.
During the third quarter of 2024, we launched AI-based software that is designed to optimize energy use by integrating solar and consumption forecasting with electricity tariff. This is intended to help consumers maximize savings as energy markets become increasingly complex, such as with dynamic electricity rates in parts of Europe and NEM 3.0 in California. We are gearing up to launch our second-generation IQ® EV charger, the 3-Phase IQ Battery with backup, and the IQ® Balcony Solar Kit all for the European market – pushing the boundaries of innovation. Finally, our fourth-generation energy system, featuring the IQ® Meter Collar, 10 kWh IQ Battery, and enhanced IQ® Combiner, is expected to debut in the United States in early 2025, targeting a substantial reduction in installation costs.
BUSINESS HIGHLIGHTS
On Oct. 16, 2024, Enphase Energy announced that it started shipping IQ8™ Microinverters to support newer, high-powered solar panels in select countries and territories, including the Netherlands, Austria, New Caledonia, and Malta.
On Oct. 9, 2024, Enphase Energy announced that it is expanding its support for grid services programs – or virtual power plants (VPPs) – in New Hampshire, North Carolina, and California, powered by the new IQ Battery 5P.
On Oct. 3, 2024, Enphase Energy announced the launch of its IQ8X™ Microinverters in Australia, and that all IQ8 Microinverters activated starting Oct. 1, 2024 in Australia come with an industry-leading 25-year limited warranty, currently the longest standard residential warranty in the Australian market.
On Sept. 24, 2024, Enphase Energy announced the launch of its most powerful Enphase® Energy System™ to-date, featuring the new IQ Battery 5P and IQ8 Microinverters, for customers in India.
On Sept. 16, 2024, Enphase Energy announced that it started shipping the IQ Battery 5P in Belgium. Enphase also introduced IQ® Energy Management, its new AI-based energy management software to enable support for dynamic electricity rates and the integration of third-party EV chargers and heat pumps in Belgium.
On Sept. 10, 2024, Enphase Energy announced initial shipments of IQ8HC Microinverters supplied from contract manufacturing facilities in the United States with higher domestic content than previous models. The microinverters have SKUs with a “DOM” suffix, indicating the increased amount of domestic content.
On Sept. 4, 2024, Enphase Energy announced a solution for expanding legacy net energy metering (NEM) solar energy systems in California without penalty using new Enphase Energy Systems configurations with IQ® Microinverters, IQ Batteries, and Enphase Power Control.
On Aug. 27, 2024, Enphase Energy announced the availability of pre-orders for IQ Battery 5Ps produced in the United States. Pre-orders are also available for IQ8HC Microinverters, IQ8P-3P™ Microinverters, and IQ8X Microinverters produced in the United States with higher domestic content.
On Aug. 19, 2024, Enphase Energy announced that it started shipping the IQ Battery 5P in the Netherlands. Enphase also introduced IQ Energy Management, its new energy management software to enable support for dynamic electricity rates and the integration of third-party EV chargers and heat pumps in the Netherlands.
On Aug. 8, 2024, Enphase Energy announced the launch of its new North American Charging Standard (NACS) connectors for its entire line of IQ EV Chargers. NACS connectors and charger ports have recently become the industry standard embraced by several major automakers for electric vehicles (EVs).
On Aug. 5, 2024, Enphase Energy announced that it started shipping IQ8P™ and IQ8HC Microinverters to support newer, high-powered solar panels in select countries throughout the Caribbean.
On Aug. 1, 2024, Enphase Energy announced that it started shipping IQ8 Microinverters to support newer, high-powered solar modules in select countries throughout Europe, including France, Germany, Spain, Bulgaria, Estonia, Slovakia, and Croatia.
FOURTH QUARTER 2024 FINANCIAL OUTLOOK
For the fourth quarter of 2024, Enphase Energy estimates both GAAP and non-GAAP financial results as follows:
- Revenue to be within a range of
$360.0 million to$400.0 million , which includes shipments of 140 to 160 megawatt hours of IQ Batteries - GAAP gross margin to be within a range of
47.0% to50.0% with net IRA benefit - Non-GAAP gross margin to be within a range of
49.0% to52.0% with net IRA benefit and39.0% to42.0% excluding net IRA benefit. Non-GAAP gross margin excludes stock-based compensation expense and acquisition related amortization - Net IRA benefit to be within a range of
$38.0 million to$41.0 million based on estimated shipments of 1,300,000 units of U.S. manufactured microinverters - GAAP operating expenses to be within a range of
$135.0 million to$139.0 million - Non-GAAP operating expenses to be within a range of
$81.0 million to$85.0 million , excluding$54.0 million estimated for stock-based compensation expense, acquisition related expenses and amortization
For 2024, GAAP and non-GAAP annualized effective tax rate with IRA benefit, excluding discrete items, is expected to be within a range of
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Use of non-GAAP Financial Measures
Enphase Energy has presented certain non-GAAP financial measures in this press release. Generally, a non-GAAP financial measure is a numerical measure of a company’s performance, financial position, or cash flows that either exclude or include amounts that are not normally excluded or included in the most directly comparable measure calculated and presented in accordance with generally accepted accounting principles in the United States (GAAP). Reconciliation of each non-GAAP financial measure to the most directly comparable GAAP financial measure can be found in the accompanying tables to this press release. Non-GAAP financial measures presented by Enphase Energy include non-GAAP gross profit, gross margin, operating expenses, income from operations, net income, net income per share (basic and diluted), net IRA benefit, and free cash flow.
These non-GAAP financial measures do not reflect a comprehensive system of accounting, differ from GAAP measures with the same captions and may differ from non-GAAP financial measures with the same or similar captions that are used by other companies. In addition, these non-GAAP measures have limitations in that they do not reflect all of the amounts associated with Enphase Energy’s results of operations as determined in accordance with GAAP. As such, these non-GAAP measures should be considered as a supplement to, and not as a substitute for, or superior to, financial measures calculated in accordance with GAAP. Enphase Energy uses these non-GAAP financial measures to analyze its operating performance and future prospects, develop internal budgets and financial goals, and to facilitate period-to-period comparisons. Enphase Energy believes that these non-GAAP financial measures reflect an additional way of viewing aspects of its operations that, when viewed with its GAAP results, provide a more complete understanding of factors and trends affecting its business.
As presented in the “Reconciliation of Non-GAAP Financial Measures” tables below, each of the non-GAAP financial measures excludes one or more of the following items for purposes of calculating non-GAAP financial measures to facilitate an evaluation of Enphase Energy’s current operating performance and a comparison to its past operating performance:
Stock-based compensation expense. Enphase Energy excludes stock-based compensation expense from its non-GAAP measures primarily because they are non-cash in nature. Moreover, the impact of this expense is significantly affected by Enphase Energy’s stock price at the time of an award over which management has limited to no control.
Acquisition related expenses and amortization. This item represents expenses incurred related to Enphase Energy’s business acquisitions, which are non-recurring in nature, and amortization of acquired intangible assets, which is a non-cash expense. Acquisition related expenses and amortization of acquired intangible assets are not reflective of Enphase Energy’s ongoing financial performance.
Restructuring and asset impairment charges. Enphase Energy excludes restructuring and asset impairment charges due to the nature of the expenses being unusual and arising outside the ordinary course of continuing operations. These costs primarily consist of fees paid for cash-based severance costs and asset write-downs of property and equipment and acquired intangible assets, and other contract termination costs resulting from restructuring initiatives.
Non-cash interest expense. This item consists primarily of amortization of debt issuance costs and accretion of debt discount because these expenses do not represent a cash outflow for Enphase Energy except in the period the financing was secured and such amortization expense is not reflective of Enphase Energy’s ongoing financial performance.
Non-GAAP income tax adjustment. This item represents the amount adjusted to Enphase Energy’s GAAP tax provision or benefit to exclude the income tax effects of GAAP adjustments such as stock-based compensation, amortization of purchased intangibles, and other non-recurring items that are not reflective of Enphase Energy ongoing financial performance.
Non-GAAP net income per share, diluted. Enphase Energy excludes the dilutive effect of in-the-money portion of convertible senior notes as they are covered by convertible note hedge transactions that reduce potential dilution to our common stock upon conversion of the Notes due 2025, Notes due 2026, and Notes due 2028, and includes the dilutive effect of employee’s stock-based awards and the dilutive effect of warrants. Enphase Energy believes these adjustments provide useful supplemental information to the ongoing financial performance.
Net IRA benefit. This item represents the advanced manufacturing production tax credit (AMPTC) from the IRA for manufacturing microinverters in the United States, partially offset by the incremental manufacturing cost incurred in the United States relative to manufacturing in Mexico, India, and China. The AMPTC is accounted for by Enphase Energy as an income-based government grants that reduces cost of revenues in the condensed consolidated statements of operations.
Free cash flow. This item represents net cash flows from operating activities less purchases of property and equipment.
Conference Call Information
Enphase Energy will host a conference call for analysts and investors to discuss its third quarter 2024 results and fourth quarter 2024 business outlook today at 4:30 p.m. Eastern Time (1:30 p.m. Pacific Time). The call is open to the public by dialing (833) 634-5018. A live webcast of the conference call will also be accessible from the “Investor Relations” section of Enphase Energy’s website at https://investor.enphase.com. Following the webcast, an archived version will be available on the website for approximately one year. In addition, an audio replay of the conference call will be available by calling (877) 344-7529; replay access code 2677879, beginning approximately one hour after the call.
Forward-Looking Statements
This press release contains forward-looking statements, including statements related to Enphase Energy’s expectations as to its fourth quarter of 2024 financial outlook, including revenue, shipments of IQ Batteries by megawatt hours, gross margin with net IRA benefit and excluding net IRA benefit, estimated shipments of U.S. manufactured microinverters, operating expenses, and annualized effective tax rate with IRA benefit; its expectations regarding the expected net IRA benefit; its expectations on the timing and introduction of new products and updates to existing products; its expectations for global capacity of microinverters; its ability to support grid services in new locations; the ability of its AI-based software to help consumers maximize savings as energy markets become increasingly complex; and the capabilities, advantages, features, and performance of its technology and products. These forward-looking statements are based on Enphase Energy’s current expectations and inherently involve significant risks and uncertainties. Enphase Energy’s actual results and the timing of events could differ materially from those anticipated in such forward-looking statements as a result of certain risks and uncertainties including those risks described in more detail in its most recently filed Annual Report on Form 10-K, Quarterly Report on Form 10-Q, and other documents on file with the SEC from time to time and available on the SEC’s website at www.sec.gov. Enphase Energy undertakes no duty or obligation to update any forward-looking statements contained in this release as a result of new information, future events or changes in its expectations, except as required by law.
A copy of this press release can be found on the investor relations page of Enphase Energy’s website at https://investor.enphase.com.
About Enphase Energy, Inc.
Enphase Energy, a global energy technology company based in Fremont, CA, is the world's leading supplier of microinverter-based solar and battery systems that enable people to harness the sun to make, use, save, and sell their own power—and control it all with a smart mobile app. The company revolutionized the solar industry with its microinverter-based technology and builds all-in-one solar, battery, and software solutions. Enphase has shipped approximately 78.0 million microinverters, and over 4.5 million Enphase-based systems have been deployed in more than 160 countries. For more information, visit https://enphase.com/.
© 2024 Enphase Energy, Inc. All rights reserved. Enphase Energy, Enphase, the “e” logo, IQ, IQ8, and certain other marks listed at https://enphase.com/trademark-usage-guidelines are trademarks or service marks of Enphase Energy, Inc. Other names are for informational purposes and may be trademarks of their respective owners.
Contact:
Zach Freedman
Enphase Energy, Inc.
Investor Relations
ir@enphaseenergy.com
| ENPHASE ENERGY, INC. | |||||||||||||||||||
| CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | |||||||||||||||||||
| (In thousands, except per share data) | |||||||||||||||||||
| (Unaudited) | |||||||||||||||||||
| Three Months Ended | Nine Months Ended | ||||||||||||||||||
| September 30, 2024 | June 30, 2024 | September 30, 2023 | September 30, 2024 | September 30, 2023 | |||||||||||||||
| Net revenues | $ | 380,873 | $ | 303,458 | $ | 551,082 | $ | 947,670 | $ | 1,988,216 | |||||||||
| Cost of revenues | 202,702 | 166,292 | 289,069 | 516,825 | 1,076,490 | ||||||||||||||
| Gross profit | 178,171 | 137,166 | 262,013 | 430,845 | 911,726 | ||||||||||||||
| Operating expenses: | |||||||||||||||||||
| Research and development | 47,843 | 48,871 | 54,873 | 150,925 | 172,045 | ||||||||||||||
| Sales and marketing | 49,671 | 51,775 | 55,357 | 154,753 | 178,383 | ||||||||||||||
| General and administrative | 30,192 | 33,550 | 33,794 | 98,924 | 104,456 | ||||||||||||||
| Restructuring and asset impairment charges | 677 | 1,171 | — | 3,755 | 870 | ||||||||||||||
| Total operating expenses | 128,383 | 135,367 | 144,024 | 408,357 | 455,754 | ||||||||||||||
| Income from operations | 49,788 | 1,799 | 117,989 | 22,488 | 455,972 | ||||||||||||||
| Other income, net | |||||||||||||||||||
| Interest income | 19,977 | 19,203 | 19,669 | 58,889 | 49,235 | ||||||||||||||
| Interest expense | (2,237 | ) | (2,220 | ) | (2,196 | ) | (6,653 | ) | (6,571 | ) | |||||||||
| Other income (expense), net | (16,785 | ) | (7,566 | ) | 1,883 | (24,264 | ) | 2,276 | |||||||||||
| Total other income, net | 955 | 9,417 | 19,356 | 27,972 | 44,940 | ||||||||||||||
| Income before income taxes | 50,743 | 11,216 | 137,345 | 50,460 | 500,912 | ||||||||||||||
| Income tax provision | (4,981 | ) | (383 | ) | (23,392 | ) | (9,962 | ) | (82,895 | ) | |||||||||
| Net income | $ | 45,762 | $ | 10,833 | $ | 113,953 | $ | 40,498 | $ | 418,017 | |||||||||
| Net income per share: | |||||||||||||||||||
| Basic | $ | 0.34 | $ | 0.08 | $ | 0.84 | $ | 0.30 | $ | 3.06 | |||||||||
| Diluted | $ | 0.33 | $ | 0.08 | $ | 0.80 | $ | 0.30 | $ | 2.92 | |||||||||
| Shares used in per share calculation: | |||||||||||||||||||
| Basic | 135,329 | 135,646 | 136,165 | 135,621 | 136,491 | ||||||||||||||
| Diluted | 139,914 | 136,123 | 143,863 | 136,236 | 145,081 | ||||||||||||||
| ENPHASE ENERGY, INC. | |||||
| CONDENSED CONSOLIDATED BALANCE SHEETS | |||||
| (In thousands) | |||||
| (Unaudited) | |||||
| September 30, 2024 | December 31, 2023 | ||||
| ASSETS | |||||
| Current assets: | |||||
| Cash and cash equivalents | $ | 256,325 | $ | 288,748 | |
| Marketable securities | 1,510,299 | 1,406,286 | |||
| Accounts receivable, net | 232,225 | 445,959 | |||
| Inventory | 158,837 | 213,595 | |||
| Prepaid expenses and other assets | 203,195 | 88,930 | |||
| Total current assets | 2,360,881 | 2,443,518 | |||
| Property and equipment, net | 148,444 | 168,244 | |||
| Operating lease, right of use asset, net | 28,120 | 19,887 | |||
| Intangible assets, net | 51,152 | 68,536 | |||
| Goodwill | 214,292 | 214,562 | |||
| Other assets | 185,448 | 215,895 | |||
| Deferred tax assets, net | 275,854 | 252,370 | |||
| Total assets | $ | 3,264,191 | $ | 3,383,012 | |
| LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||
| Current liabilities: | |||||
| Accounts payable | $ | 112,417 | $ | 116,164 | |
| Accrued liabilities | 189,819 | 261,919 | |||
| Deferred revenues, current | 129,556 | 118,300 | |||
| Warranty obligations, current | 35,755 | 36,066 | |||
| Debt, current | 99,931 | — | |||
| Total current liabilities | 567,478 | 532,449 | |||
| Long-term liabilities: | |||||
| Deferred revenues, non-current | 354,210 | 369,172 | |||
| Warranty obligations, non-current | 148,477 | 153,021 | |||
| Other liabilities | 62,392 | 51,008 | |||
| Debt, non-current | 1,200,261 | 1,293,738 | |||
| Total liabilities | 2,332,818 | 2,399,388 | |||
| Total stockholders’ equity | 931,373 | 983,624 | |||
| Total liabilities and stockholders’ equity | $ | 3,264,191 | $ | 3,383,012 | |
| ENPHASE ENERGY, INC. | |||||||||||||||||||
| CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | |||||||||||||||||||
| (In thousands) | |||||||||||||||||||
| (Unaudited) | |||||||||||||||||||
| Three Months Ended | Nine Months Ended | ||||||||||||||||||
| September 30, 2024 | June 30, 2024 | September 30, 2023 | September 30, 2024 | September 30, 2023 | |||||||||||||||
| Cash flows from operating activities: | |||||||||||||||||||
| Net income | $ | 45,762 | $ | 10,833 | $ | 113,953 | $ | 40,498 | $ | 418,017 | |||||||||
| Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||||||||||
| Depreciation and amortization | 20,103 | 20,484 | 19,448 | 60,724 | 53,867 | ||||||||||||||
| Net amortization (accretion) of premium (discount) on marketable securities | (2,904 | ) | (1,030 | ) | 5,094 | (1,109 | ) | (12,611 | ) | ||||||||||
| Provision for doubtful accounts | 2,704 | 1,897 | 653 | 4,471 | 1,282 | ||||||||||||||
| Asset impairment | 17,568 | 6,241 | 903 | 24,141 | 903 | ||||||||||||||
| Non-cash interest expense | 2,173 | 2,157 | 2,114 | 6,462 | 6,254 | ||||||||||||||
| Net loss (gain) from change in fair value of debt securities | 741 | 1,931 | (1,910 | ) | 1,730 | (5,408 | ) | ||||||||||||
| Stock-based compensation | 45,940 | 52,757 | 43,814 | 159,530 | 157,635 | ||||||||||||||
| Deferred income taxes | (5,276 | ) | (14,076 | ) | (11,499 | ) | (27,644 | ) | (38,295 | ) | |||||||||
| Changes in operating assets and liabilities: | |||||||||||||||||||
| Accounts receivable | 49,414 | 82,183 | (34,752 | ) | 208,956 | (118,249 | ) | ||||||||||||
| Inventory | 17,231 | 31,825 | (8,003 | ) | 54,758 | (24,406 | ) | ||||||||||||
| Prepaid expenses and other assets | (64,149 | ) | (42,810 | ) | (15,383 | ) | (117,856 | ) | (57,376 | ) | |||||||||
| Accounts payable, accrued and other liabilities | 32,088 | (23,944 | ) | 9,903 | (58,140 | ) | 117,128 | ||||||||||||
| Warranty obligations | 7,053 | 15 | 8,151 | (4,855 | ) | 57,420 | |||||||||||||
| Deferred revenues | 1,690 | (1,401 | ) | 13,369 | (5,265 | ) | 105,169 | ||||||||||||
| Net cash provided by operating activities | 170,138 | 127,062 | 145,855 | 346,401 | 661,330 | ||||||||||||||
| Cash flows from investing activities: | |||||||||||||||||||
| Purchases of property and equipment | (8,533 | ) | (9,636 | ) | (23,848 | ) | (25,540 | ) | (90,326 | ) | |||||||||
| Purchases of marketable securities | (319,190 | ) | (300,053 | ) | (470,766 | ) | (1,091,511 | ) | (1,743,674 | ) | |||||||||
| Maturities and sale of marketable securities | 215,241 | 282,063 | 494,804 | 994,677 | 1,406,608 | ||||||||||||||
| Investments in private companies | — | — | (15,000 | ) | — | (15,000 | ) | ||||||||||||
| Net cash used in investing activities | (112,482 | ) | (27,626 | ) | (14,810 | ) | (122,374 | ) | (442,392 | ) | |||||||||
| Cash flows from financing activities: | |||||||||||||||||||
| Partial settlement of convertible notes | (5 | ) | — | — | (7 | ) | — | ||||||||||||
| Repurchase of common stock | (49,794 | ) | (99,908 | ) | (110,000 | ) | (191,698 | ) | (310,000 | ) | |||||||||
| Proceeds from issuance of common stock under employee equity plans | 14 | 6,769 | 719 | 7,969 | 1,315 | ||||||||||||||
| Payment of withholding taxes related to net share settlement of equity awards | (6,286 | ) | (7,473 | ) | (8,465 | ) | (73,801 | ) | (93,100 | ) | |||||||||
| Net cash used in financing activities | (56,071 | ) | (100,612 | ) | (117,746 | ) | (257,537 | ) | (401,785 | ) | |||||||||
| Effect of exchange rate changes on cash and cash equivalents | 2,638 | (374 | ) | (1,900 | ) | 1,087 | (322 | ) | |||||||||||
| Net increase (decrease) in cash and cash equivalents | 4,223 | (1,550 | ) | 11,399 | (32,423 | ) | (183,169 | ) | |||||||||||
| Cash and cash equivalents—Beginning of period | 252,102 | 253,652 | 278,676 | 288,748 | 473,244 | ||||||||||||||
| Cash and cash equivalents —End of period | $ | 256,325 | $ | 252,102 | $ | 290,075 | $ | 256,325 | $ | 290,075 | |||||||||
| ENPHASE ENERGY, INC. | |||||||||||||||||||
| RECONCILIATION OF NON-GAAP FINANCIAL MEASURES | |||||||||||||||||||
| (In thousands, except per share data and percentages) | |||||||||||||||||||
| (Unaudited) | |||||||||||||||||||
| Three Months Ended | Nine Months Ended | ||||||||||||||||||
| September 30, 2024 | June 30, 2024 | September 30, 2023 | September 30, 2024 | September 30, 2023 | |||||||||||||||
| Gross profit (GAAP) | $ | 178,171 | $ | 137,166 | $ | 262,013 | $ | 430,845 | $ | 911,726 | |||||||||
| Stock-based compensation | 2,948 | 3,730 | 2,708 | 10,860 | 9,775 | ||||||||||||||
| Acquisition related amortization | 1,904 | 1,890 | 1,899 | 5,685 | 5,686 | ||||||||||||||
| Gross profit (Non-GAAP) | $ | 183,023 | $ | 142,786 | $ | 266,620 | $ | 447,390 | $ | 927,187 | |||||||||
| Gross margin (GAAP) | 46.8 | % | 45.2 | % | 47.5 | % | 45.5 | % | 45.9 | % | |||||||||
| Stock-based compensation | 0.8 | 1.3 | 0.6 | 1.1 | 0.5 | ||||||||||||||
| Acquisition related amortization | 0.5 | 0.6 | 0.3 | 0.6 | 0.2 | ||||||||||||||
| Gross margin (Non-GAAP) | 48.1 | % | 47.1 | % | 48.4 | % | 47.2 | % | 46.6 | % | |||||||||
| Operating expenses (GAAP) | $ | 128,383 | $ | 135,367 | $ | 144,024 | $ | 408,357 | $ | 455,754 | |||||||||
| Stock-based compensation(1) | (42,992 | ) | (49,027 | ) | (41,106 | ) | (148,670 | ) | (147,860 | ) | |||||||||
| Acquisition related expenses and amortization | (3,102 | ) | (3,463 | ) | (3,891 | ) | (10,027 | ) | (11,429 | ) | |||||||||
| Restructuring and asset impairment charges | (677 | ) | (1,171 | ) | — | (3,755 | ) | (901 | ) | ||||||||||
| Operating expenses (Non-GAAP) | $ | 81,612 | $ | 81,706 | $ | 99,027 | $ | 245,905 | $ | 295,564 | |||||||||
| (1)Includes stock-based compensation as follows: | |||||||||||||||||||
| Research and development | $ | 19,790 | $ | 20,210 | $ | 19,285 | $ | 64,550 | $ | 64,528 | |||||||||
| Sales and marketing | 14,237 | 16,784 | 13,297 | 49,199 | 49,231 | ||||||||||||||
| General and administrative | 8,965 | 12,033 | 8,524 | 34,921 | 34,101 | ||||||||||||||
| Total | $ | 42,992 | $ | 49,027 | $ | 41,106 | $ | 148,670 | $ | 147,860 | |||||||||
| Income from operations (GAAP) | $ | 49,788 | $ | 1,799 | $ | 117,989 | $ | 22,488 | $ | 455,972 | |||||||||
| Stock-based compensation | 45,940 | 52,757 | 43,814 | 159,530 | 157,635 | ||||||||||||||
| Acquisition related expenses and amortization | 5,006 | 5,353 | 5,790 | 15,712 | 17,115 | ||||||||||||||
| Restructuring and asset impairment charges | 677 | 1,171 | — | 3,755 | 901 | ||||||||||||||
| Income from operations (Non-GAAP) | $ | 101,411 | $ | 61,080 | $ | 167,593 | $ | 201,485 | $ | 631,623 | |||||||||
| Net income (GAAP) | $ | 45,762 | $ | 10,833 | $ | 113,953 | $ | 40,498 | $ | 418,017 | |||||||||
| Stock-based compensation | 45,940 | 52,757 | 43,814 | 159,530 | 157,635 | ||||||||||||||
| Acquisition related expenses and amortization | 5,006 | 5,353 | 5,790 | 15,712 | 17,115 | ||||||||||||||
| Restructuring and asset impairment charges | 677 | 1,171 | — | 3,755 | 901 | ||||||||||||||
| Non-cash interest expense | 2,173 | 2,157 | 2,114 | 6,462 | 6,254 | ||||||||||||||
| Non-GAAP income tax adjustment | (11,156 | ) | (13,447 | ) | (23,822 | ) | (30,775 | ) | (61,413 | ) | |||||||||
| Net income (Non-GAAP) | $ | 88,402 | $ | 58,824 | $ | 141,849 | $ | 195,182 | $ | 538,509 | |||||||||
| Net income per share, basic (GAAP) | $ | 0.34 | $ | 0.08 | $ | 0.84 | $ | 0.30 | $ | 3.06 | |||||||||
| Stock-based compensation | 0.34 | 0.39 | 0.32 | 1.17 | 1.15 | ||||||||||||||
| Acquisition related expenses and amortization | 0.04 | 0.04 | 0.04 | 0.12 | 0.13 | ||||||||||||||
| Restructuring and asset impairment charges | 0.01 | 0.01 | — | 0.03 | 0.01 | ||||||||||||||
| Non-cash interest expense | 0.02 | 0.02 | 0.02 | 0.05 | 0.04 | ||||||||||||||
| Non-GAAP income tax adjustment | (0.10 | ) | (0.11 | ) | (0.18 | ) | (0.23 | ) | (0.44 | ) | |||||||||
| Net income per share, basic (Non-GAAP) | $ | 0.65 | $ | 0.43 | $ | 1.04 | $ | 1.44 | $ | 3.95 | |||||||||
| Shares used in basic per share calculation GAAP and Non-GAAP | 135,329 | 135,646 | 136,165 | 135,621 | 136,491 | ||||||||||||||
| Net income per share, diluted (GAAP) | $ | 0.33 | $ | 0.08 | $ | 0.80 | $ | 0.30 | $ | 2.92 | |||||||||
| Stock-based compensation | 0.33 | 0.38 | 0.32 | 1.17 | 1.17 | ||||||||||||||
| Acquisition related expenses and amortization | 0.04 | 0.04 | 0.04 | 0.12 | 0.12 | ||||||||||||||
| Restructuring and asset impairment charges | 0.01 | 0.01 | — | 0.03 | 0.01 | ||||||||||||||
| Non-cash interest expense | 0.02 | 0.02 | 0.02 | 0.05 | 0.04 | ||||||||||||||
| Non-GAAP income tax adjustment | (0.08 | ) | (0.10 | ) | (0.16 | ) | (0.24 | ) | (0.40 | ) | |||||||||
| Net income per share, diluted (Non-GAAP)(2) | $ | 0.65 | $ | 0.43 | $ | 1.02 | $ | 1.43 | $ | 3.86 | |||||||||
| Shares used in diluted per share calculation GAAP | 139,914 | 136,123 | 143,863 | 136,236 | 145,081 | ||||||||||||||
| Shares used in diluted per share calculation Non-GAAP | 135,839 | 136,123 | 138,535 | 136,236 | 139,753 | ||||||||||||||
| Income-based government grants (GAAP) | $ | 46,552 | $ | 24,329 | $ | 18,532 | $ | 89,498 | $ | 20,583 | |||||||||
| Incremental cost for manufacturing in U.S. | (11,396 | ) | (5,950 | ) | (4,085 | ) | (22,228 | ) | (4,491 | ) | |||||||||
| Net IRA benefit (Non-GAAP) | $ | 35,156 | $ | 18,379 | $ | 14,447 | $ | 67,270 | $ | 16,092 | |||||||||
| Net cash provided by operating activities (GAAP) | $ | 170,138 | $ | 127,062 | $ | 145,855 | $ | 346,401 | $ | 661,330 | |||||||||
| Purchases of property and equipment | (8,533 | ) | (9,636 | ) | (23,848 | ) | (25,540 | ) | (90,326 | ) | |||||||||
| Free cash flow (Non-GAAP) | $ | 161,605 | $ | 117,426 | $ | 122,007 | $ | 320,861 | $ | 571,004 | |||||||||
(2) Calculation of non-GAAP diluted net income per share for the three and nine months ended September 30, 2023 excludes convertible Notes due 2023 interest expense, net of tax of less than
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FAQ
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