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Sep 30, 2024

Enphase Q3 2024 Earnings Report

Reported revenue of $380.9 million, GAAP gross margin of 46.8%, and non-GAAP EPS of $0.65.

Key Takeaways

Enphase Energy reported Q3 2024 revenue of $380.9 million with a GAAP gross margin of 46.8% and non-GAAP gross margin of 48.1%. The company shipped 730.0 MWdc of microinverters and 172.9 MWh of IQ Batteries. They exited the quarter with $1.77 billion in cash, cash equivalents and marketable securities.

Quarterly revenue of $380.9 million.

GAAP gross margin of 46.8%; non-GAAP gross margin of 48.1% with net IRA benefit.

GAAP operating income of $49.8 million; non-GAAP operating income of $101.4 million.

GAAP diluted earnings per share of $0.33; non-GAAP diluted earnings per share of $0.65.

Total Revenue
$381M
Previous year: $551M
-30.9%
EPS
$0.65
Previous year: $1.02
-36.3%
Megawatts DC Shipped
730M
Previous year: 1.59K
+46039254.2%
Microinverters Shipped
1.73M
Previous year: 3.91M
-55.7%
Gross Profit
$178M
Previous year: $262M
-32.0%
Cash and Equivalents
$256M
Previous year: $290M
-11.6%
Free Cash Flow
$162M
Previous year: $122M
+32.5%
Total Assets
$3.26B
Previous year: $3.55B
-8.2%

Enphase

Enphase

Forward Guidance

For the fourth quarter of 2024, Enphase Energy estimates 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% to 50.0% with net IRA benefit. Non-GAAP gross margin to be within a range of 49.0% to 52.0% with net IRA benefit and 39.0% to 42.0% excluding net IRA benefit. 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.

Positive Outlook

  • Revenue to be within a range of $360.0 million to $400.0 million
  • Shipments of 140 to 160 megawatt hours of IQ Batteries
  • GAAP gross margin to be within a range of 47.0% to 50.0% with net IRA benefit
  • Non-GAAP gross margin to be within a range of 49.0% to 52.0% with net IRA benefit
  • Non-GAAP gross margin to be within a range of 39.0% to 42.0% excluding net IRA benefit

Challenges Ahead

  • 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
  • Annualized effective tax rate with IRA benefit, excluding discrete items, is expected to be within a range of 17.0% to 19.0%.
  • The company expects to begin shipping its commercial microinverters, and batteries with higher domestic content, produced at our United States contract manufacturing facilities in the fourth quarter of 2024.
  • 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.