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Dec 31, 2023
Enphase Q4 2023 Earnings Report
Enphase reported a decrease in revenue due to reduced shipments and softened demand, while non-GAAP gross margin increased due to IRA benefits.
Key Takeaways
Enphase Energy reported Q4 2023 revenue of $302.6 million, a decrease from the previous quarter. The company's non-GAAP gross margin was 50.3%, and it shipped 660.1 MWdc of microinverters and 80.7 MWh of IQ Batteries. Enphase is streamlining manufacturing by ceasing operations at its Romania and Wisconsin locations.
Q4 revenue was $302.6 million.
Shipped 660.1 MWdc of microinverters and 80.7 MWh of IQ Batteries.
Non-GAAP gross margin was 50.3% with net IRA benefit.
Exited Q4 with $1.70 billion in cash, cash equivalents, and marketable securities.
Enphase
Enphase
Forward Guidance
Enphase Energy anticipates revenue between $260.0 million and $300.0 million for Q1 2024, including 70 to 90 MWh of IQ Battery shipments. GAAP gross margin is expected to be 42.0% to 45.0%, and non-GAAP gross margin is expected to be 44.0% to 47.0%, both with net IRA benefit.
Positive Outlook
- Revenue to be within a range of $260.0 million to $300.0 million
- Shipments of 70 to 90 megawatt hours of IQ Batteries
- GAAP gross margin to be within a range of 42.0% to 45.0%, with net IRA benefit
- Non-GAAP gross margin to be within a range of 44.0% to 47.0% with net IRA benefit and 40.0% to 43.0% excluding net IRA benefit
- Net IRA benefit to be within a range of $12.0 to $14.0 million based on estimated shipments of 500,000 units of U.S. manufactured microinverters
Challenges Ahead
- GAAP operating expenses to be within a range of $144.0 million to $148.0 million
- Non-GAAP operating expenses to be within a range of $80.0 million to $84.0 million, excluding $64.0 million estimated for stock-based compensation expense, acquisition related expenses and amortization, and restructuring and asset impairment charges
- The declines were primarily the result of reduced shipments to manage high inventory at our distribution partners along with a further softening in demand.
- Our revenue in the United States for the fourth quarter of 2023 decreased approximately 35%, compared to the third quarter of 2023.
- Our revenue in Europe decreased approximately 70%, compared to the third quarter of 2023.