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Dec 31, 2022

Enphase Q4 2022 Earnings Report

Enphase reported record quarterly revenue driven by strong demand for Enphase Energy Systems and IQ8 Microinverter product mix.

Key Takeaways

Enphase Energy reported record quarterly revenue of $724.7 million in Q4 2022. The company shipped 4,873,702 microinverters and 122.1 megawatt hours of Enphase IQ Batteries. Enphase is adding additional manufacturing capacity in the United States due to strong global demand.

Record quarterly revenue of $724.7 million.

GAAP gross margin of 42.9%; non-GAAP gross margin of 43.8%.

GAAP net income of $153.8 million; non-GAAP net income of $212.4 million.

Free cash flow of $237.3 million; ending cash, cash equivalents, and marketable securities of $1.61 billion.

Total Revenue
$725M
Previous year: $413M
+75.6%
EPS
$1.51
Previous year: $0.73
+106.8%
Megawatts DC Shipped
1.95M
Previous year: 1.08K
+180343.6%
Microinverters Shipped
4.87M
Previous year: 3.03M
+60.6%
Gross Profit
$311M
Previous year: $163M
+90.2%
Cash and Equivalents
$473M
Previous year: $119M
+296.6%
Free Cash Flow
$237M
Previous year: $84.1M
+182.2%
Total Assets
$3.08B
Previous year: $2.08B
+48.3%

Enphase

Enphase

Forward Guidance

For the first quarter of 2023, Enphase Energy estimates revenue to be within a range of $700 million to $740 million, which includes shipments of 100 to 120 megawatt hours of Enphase IQ Batteries. GAAP gross margin to be within a range of 40.0% to 43.0%; non-GAAP gross margin to be within a range of 41.0% to 44.0%.

Positive Outlook

  • Revenue to be within a range of $700 million to $740 million.
  • Shipments of 100 to 120 megawatt hours of Enphase IQ Batteries
  • GAAP gross margin to be within a range of 40.0% to 43.0%.
  • Non-GAAP gross margin to be within a range of 41.0% to 44.0%
  • GAAP and non-GAAP annualized effective tax rate is expected to be within a range of 20.0% to 24.0%

Challenges Ahead

  • GAAP operating expenses to be within a range of $177.0 million to $181.0 million
  • Non-GAAP operating expenses to be within a range of $100.0 million to $104.0 million
  • Excluding $77.0 million estimated for stock-based compensation expense
  • Excluding restructuring charges for site consolidation
  • Excluding acquisition related expenses and amortization