Enphase Q2 2023 Earnings Report
Key Takeaways
Enphase Energy announced financial results for the second quarter of 2023, reporting revenue of $711.1 million, a GAAP gross margin of 45.5%, and non-GAAP gross margin of 46.2%. The company shipped 2,121.3 MWdc of microinverters and 82.3 MWh of IQ Batteries. Enphase exited the quarter with $1.8 billion in cash, cash equivalents, and marketable securities.
Reported quarterly revenue of $711.1 million.
Achieved a GAAP gross margin of 45.5% and a non-GAAP gross margin of 46.2%.
Generated $225.2 million in free cash flow.
Exited the quarter with $1.8 billion in cash, cash equivalents, and marketable securities.
Enphase
Enphase
Forward Guidance
For the third quarter of 2023, Enphase Energy estimates revenue to be within a range of $550.0 million to $600.0 million, which includes shipments of 80 to 100 megawatt hours of IQ Batteries. GAAP gross margin is expected to be within a range of 41.0% to 44.0%, before net IRA benefit, while non-GAAP gross margin is expected to be within a range of 42.0% to 45.0%, excluding stock-based compensation expense and acquisition related amortization and before net IRA benefit.
Positive Outlook
- Revenue to be within a range of $550.0 million to $600.0 million.
- Shipments of 80 to 100 megawatt hours of IQ Batteries included in revenue guidance.
- Net IRA benefit to be within a range of $14.5 to $16.5 million based on estimated shipments of 600,000 units of U.S. manufactured microinverters.
- GAAP operating expenses to be within a range of $159.0 million to $163.0 million.
- GAAP and non-GAAP annualized effective tax rate with IRA benefit is expected to be within a range of 20.0% to 22.0%
Challenges Ahead
- GAAP gross margin to be within a range of 41.0% to 44.0%, before net IRA benefit.
- Non-GAAP gross margin to be within a range of 42.0% to 45.0%, excluding stock-based compensation expense and acquisition related amortization and before net IRA benefit.
- Non-GAAP operating expenses to be within a range of $101.0 million to $105.0 million, excluding $58.0 million estimated for stock-based compensation expense and acquisition related expenses and amortization.
- Revenue guidance reflects a decrease compared to Q2 2023 revenue.
- Gross margin is expected to decrease compared to Q2 2023.