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Sep 30, 2021

Enphase Q3 2021 Earnings Report

Enphase reported record revenue driven by strong demand for microinverter and storage systems while navigating global supply constraints.

Key Takeaways

Enphase Energy reported record quarterly revenue of $351.5 million in Q3 2021, with a non-GAAP gross margin of 40.8%. The company shipped approximately 2,599,575 microinverters (913 MW DC) and 65 MWh of Enphase Storage systems.

Record revenue of $351.5 million.

GAAP gross margin of 39.9%; non-GAAP gross margin of 40.8%.

GAAP operating income of $37.4 million; non-GAAP operating income of $85.9 million.

Cash flow from operations of $113.4 million.

Total Revenue
$352M
Previous year: $179M
+96.9%
EPS
$0.6
Previous year: $0.3
+100.0%
Megawatts DC Shipped
913
Previous year: 478
+91.0%
Microinverters Shipped
2.6M
Previous year: 1.44M
+80.2%
Gross Profit
$140M
Previous year: $95M
+47.8%
Cash and Equivalents
$886M
Previous year: $662M
+33.8%
Free Cash Flow
$101M
Previous year: $67.5M
+49.1%
Total Assets
$2.23B
Previous year: $1.09B
+104.2%

Enphase

Enphase

Forward Guidance

For the fourth quarter of 2021, Enphase Energy estimates revenue to be within a range of $390 million to $410 million, which includes shipments of 90 to 100 megawatt hours of Enphase Storage systems, GAAP gross margin to be within a range of 37.0% to 40.0%; non-GAAP gross margin to be within a range of 38.0% to 41.0%, excluding stock-based compensation expenses.

Positive Outlook

  • Revenue to be within a range of $390 million to $410 million
  • Shipments of 90 to 100 megawatt hours of Enphase Storage systems
  • GAAP gross margin to be within a range of 37.0% to 40.0%
  • Non-GAAP gross margin to be within a range of 38.0% to 41.0%, excluding stock-based compensation expenses
  • Increased investments in new products, software, and marketing

Challenges Ahead

  • GAAP operating expenses to be within a range of $119.0 million to $122.0 million, including $52.0 million estimated for stock-based compensation expenses and acquisition related costs and amortization
  • Non-GAAP operating expenses to be within a range of $67.0 million to $70.0 million, excluding $52.0 million estimated for stock-based compensation expenses and acquisition related costs and amortization
  • Global component supply constraints
  • Logistics challenges
  • Increased hiring