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Mar 31, 2023

Enphase Q1 2023 Earnings Report

Enphase reported strong financial results driven by increased demand for IQ8 Microinverters and improved logistics.

Key Takeaways

Enphase Energy reported a revenue of $726.0 million for Q1 2023. The company's non-GAAP gross margin was 45.7%. Enphase shipped 4,830,589 microinverters and 102.4 megawatt hours of Enphase IQ Batteries.

Reported quarterly revenue of $726.0 million.

Achieved a GAAP gross margin of 45.0% and a non-GAAP gross margin of 45.7%.

Generated GAAP operating income of $167.7 million and non-GAAP operating income of $233.6 million.

Produced $246.2 million in cash flow from operations.

Total Revenue
$726M
Previous year: $441M
+64.5%
EPS
$1.37
Previous year: $0.79
+73.4%
Megawatts DC Shipped
1.96K
Previous year: 1.03K
+90.2%
Microinverters Shipped
4.83M
Previous year: 2.84M
+70.2%
Gross Profit
$326M
Previous year: $177M
+84.4%
Cash and Equivalents
$286M
Previous year: $252M
+13.6%
Free Cash Flow
$224M
Previous year: $90.1M
+148.5%
Total Assets
$3.38B
Previous year: $2.26B
+49.4%

Enphase

Enphase

Forward Guidance

For the second quarter of 2023, Enphase Energy estimates revenue to be within a range of $700.0 million to $750.0 million, which includes shipments of 80 to 100 megawatt hours of Enphase IQ Batteries. GAAP gross margin to be within a range of 41.0% to 44.0%. Non-GAAP gross margin to be within a range of 42.0% to 45.0%.

Positive Outlook

  • Revenue to be between $700.0 million and $750.0 million.
  • Shipments of 80 to 100 megawatt hours of Enphase IQ Batteries.
  • GAAP gross margin to be within a range of 41.0% to 44.0%.
  • Non-GAAP gross margin to be within a range of 42.0% to 45.0%.
  • GAAP and non-GAAP annualized effective tax rate is expected to be within a range of 21.0% to 23.0%

Challenges Ahead

  • GAAP operating expenses to be within a range of $155.0 million to $159.0 million
  • Non-GAAP operating expenses to be within a range of $98.0 million to $102.0 million, excluding $57.0 million estimated for stock-based compensation expense, acquisition related expenses and amortization, and restructuring charges for site consolidation
  • Gross margin is expected to decrease compared to Q1 2023
  • Operating expenses remain high
  • The estimates exclude any benefit from the IRA