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Sep 30, 2022

Enphase Q3 2022 Earnings Report

Enphase reported record revenue driven by strong demand in North America and Europe.

Key Takeaways

Enphase Energy reported record quarterly revenue of $634.7 million in Q3 2022, with a non-GAAP gross margin of 42.9%. The company shipped 4,342,805 microinverters (approximately 1,709 MW DC) and 133.6 MWh of Enphase IQ Batteries.

Record quarterly revenue of $634.7 million.

GAAP gross margin of 42.2%; non-GAAP gross margin of 42.9%.

GAAP operating income of $135.4 million; non-GAAP operating income of $194.0 million.

Free cash flow of $179.1 million; ending cash, cash equivalents, and marketable securities of $1.42 billion.

Total Revenue
$635M
Previous year: $352M
+80.6%
EPS
$1.25
Previous year: $0.6
+108.3%
Megawatts DC Shipped
1.71K
Previous year: 913
+87.2%
Microinverters Shipped
4.34M
Previous year: 2.6M
+67.1%
Gross Profit
$268M
Previous year: $140M
+90.9%
Cash and Equivalents
$338M
Previous year: $886M
-61.9%
Free Cash Flow
$179M
Previous year: $101M
+77.9%
Total Assets
$2.7B
Previous year: $2.23B
+21.0%

Enphase

Enphase

Forward Guidance

For the fourth quarter of 2022, Enphase Energy estimates revenue to be within a range of $680 million to $720 million, which includes shipments of 120 to 135 megawatt hours of Enphase IQ Batteries. GAAP gross margin to be within a range of 39.0% to 42.0%; non-GAAP gross margin to be within a range of 40.0% to 43.0%, excluding stock-based compensation expenses and acquisition related amortization. Non-GAAP operating expenses to be within a range of $87.0 million to $91.0 million, excluding $65.0 million estimated for stock-based compensation expenses, restructuring charges for site consolidation, and acquisition related costs and amortization

Positive Outlook

  • Revenue to be within a range of $680 million to $720 million
  • Shipments of 120 to 135 megawatt hours of Enphase IQ Batteries
  • GAAP gross margin to be within a range of 39.0% to 42.0%
  • Non-GAAP gross margin to be within a range of 40.0% to 43.0%
  • Non-GAAP operating expenses to be within a range of $87.0 million to $91.0 million, excluding $65.0 million estimated for stock-based compensation expenses, restructuring charges for site consolidation, and acquisition related costs and amortization

Challenges Ahead

  • GAAP gross margin to be within a range of 39.0% to 42.0%
  • Non-GAAP gross margin to be within a range of 40.0% to 43.0%
  • GAAP operating expenses to be within a range of $152.0 million to $156.0 million
  • Exclusion of stock-based compensation expenses and acquisition related amortization from gross margin
  • Exclusion of $65.0 million estimated for stock-based compensation expenses, restructuring charges for site consolidation, and acquisition related costs and amortization from operating expenses