Enphase Energy, Inc.(ENPH) 2023 年第四季度财报电话会议记录

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$Enphase Energy, Inc.(ENPH)$


Enphase Energy, Inc. (NASDAQ:ENPH) Q4 2023 Earnings Conference Call February 6, 2024 4:30 PM ET

Company Participants

Zachary Freedman - Head of Investor Relations

Badri Kothandaraman - President and CEO

Mandy Yang - Chief Financial Officer and EVP

Raghu Belur - Chief Products Officer, SVP and Co-Founder

Conference Call Participants

Brian Lee - Goldman Sachs

Colin Rusch - Oppenheimer

Julien Dumoulin-Smith - Bank of America

Philip Shen - Roth MKM

Mark Strouse - JPMorgan

Praneeth Satish - Wells Fargo

Eric Stine - Craig-Hallum Capital Group

Christine Cho - Barclays

Jordan Levy - Truist Securities

Kashy Harrison - Piper Sandler

Andrew Percoco - Morgan Stanley

Joseph Osha - Guggenheim Partners

Auguste Richard - Northland

Moses Sutton - BNP Paribas

Maheep Mandloi - Mizuho

Tristan Richardson - Scotia Bank

Vikram Bagri - Citigroup

Pavel Molchanov - Raymond James

Austin Moeller - Canaccord


Good afternoon, and welcome to the Enphase Energy Fourth Quarter 2023 Financial Results Conference Call. All participants will be in listen-only mode. [Operator Instructions]. Please note, this event is being recorded. I would now like to turn the conference over to Zach Freedman. Please go ahead.

Zachary Freedman

Good afternoon, and thank you for joining us on today's conference call to discuss Enphase Energy's fourth quarter 2023 results. On today's call are Badri Kothandaraman, our President and Chief Executive Officer; Mandy Yang, our Chief Financial Officer; and Raghu Belur, our Chief Products Officer.

After the market closed today, Enphase issued a press release announcing the results for its fourth quarter ended December 31, 2023. During this conference call, Enphase management will make forward-looking statements, including, but not limited to, statements related to our expected future financial performance, market trends, the capabilities of our technology and products and the benefits to homeowners and installers, our operations, including manufacturing, customer service and supply and demand. Anticipated growth in existing and new markets, the timing of new product introductions and regulatory and tax matters. These forward-looking statements involve significant risks and uncertainties and our actual results and the timing of events could differ materially from these expectations.

For a more complete discussion of the risks and uncertainties, please see our most recent Form 10-K and 10-Qs filed with the SEC. We caution you not to place any undue reliance on forward-looking statements and undertake no duty or obligation to update any forward-looking statements as a result of new information, future events or changes in expectations. Also, please note that financial measures used on this call are expressed on a non-GAAP basis unless otherwise noted and have been adjusted to exclude certain charges. We have provided a reconciliation of these non-GAAP financial measures to GAAP financial measures in our earnings release furnished with the SEC on Form 8-K which can also be found in the Investor Relations section of our website.

Now I'd like to introduce Badri Kothandaraman, our President and Chief Executive Officer. Badri?

Badri Kothandaraman

Good afternoon, and thanks for joining us today to discuss our fourth quarter 2023 financial results. We reported quarterly revenue of $302.6 million, shipped approximately 1.6 million microinverters and 80.7 megawatt hours of battery and generated free cash flow of $15.4 million. On our last earnings call, we said we would reduce channel inventory by approximately $150 million. We achieved a reduction of $147 million in Q4.

For the fourth quarter, we delivered 50% gross margin, 29% operating expenses and 22% operating income, all as a percentage of revenue on a non-GAAP basis and including the IRA benefit. Mandy will go into our financials later in the call. Let's now discuss how we are servicing customers. Our worldwide NPS was 77% in Q4, the same as Q3. Our average call wait time was one minute compared to 1.3 minutes in Q3. We have made good progress on solving customer issues by focusing on both automation as well as expanding our field service teams globally.

Let's talk about operations. The overall supply environment for microinverters and batteries is quite stable. Let's come to microinverters. We shipped approximately 913,000 microinverters to customers in Q4 from our contract manufacturing facilities in the U.S. We announced in December that we are seizing operations at our contract manufacturing locations in Romania and Wisconsin. We will manufacture microinverters in the U.S. with our two existing partners in South Carolina and Texas. The equipment currently located in Romania and Wisconsin will be redeployed for use at other facilities. Once our restructuring actions are complete in the first half of the year, we expect to have a global capacity of approximately 7.25 million microinverters per quarter of which 5 million will be in the U.S.

We expect to ship approximately 500,000 microinverters to customers from our U.S. manufacturing facilities in Q1. We expect that our shipments from U.S. facilities will be lower in the first half of the year as we reduce both factory as well as channel inventory. We anticipate a higher level of shipments in the second half of the year. For IQ batteries, we have two cell pack suppliers, both in China which have sufficient manufacturing capacity to support our ramp in 2024. In addition, we will have the capability to manufacture IQ batteries in the U.S. in the third quarter of 2024.

Let's now cover the regions. Our U.S. and international revenue mix for Q4 was 75% and 25%, respectively. For more visibility into our business, we are providing you regional breakdowns and sell-through dollar metrics by region until the channel is healthy. In the U.S., our revenue decreased 35% sequentially as we undershipped to the end customer demand. The overall sell-through of our micro inverters and batteries in the U.S. was down 9% in Q4 compared to Q3. Let's discuss market trends we are seeing in the U.S. split by non-California states and California. For non-California states, our overall sell-through was only down 1% in Q4 compared to Q3. The sell-through of our microinverters was flat and the sell-through of our batteries was down 8% in Q4.

In California, our overall sell-through was down by 7% in Q4 compared to Q3. The sell-through of our microinverters was down 27% in Q4 primarily due to the NEM 3.0 transition. However, the sell-through of our batteries increased by 58% in Q4 due to the high attach rate of NEM 3.0 systems as expected. As we discussed on our last earnings call, it will take a few quarters for our installers to fully transition the NEM 3.0 and normalized sales. I'll provide more statistics on NEM 3.0 later in the call.

In Europe, our revenue decreased 70% sequentially as we under ship to the end customer demand. The overall sell-through of our microinverters and batteries in Europe was down 20% in Q4 compared to Q3. The sell-through of our microinverters was down 23%, and sell-through of batteries was down 2% in Q4 compared to Q3. I'll provide some color on our key markets in Europe, Netherlands, France and Germany.

In Netherlands, our overall sell-through in Q4 was down 37% compared to Q3. Customers are fearing an export penalty for solar, and there is confusion about the ending of net metering. We kicked off the New Year with the Solar Next event in Netherlands, where we hosted 800-plus installers across the country, promoting a comprehensive solution with Solar Plus batteries and energy management software that will unlock the full potential of the Dutch energy market. We believe Solar Plus batteries are going to become the norm as dynamic tariffs and grid services become more prevalent. We are already seeing a steady ramp in batteries in the region and expect the trend to accelerate in 2024.

In France, our overall sell-through in Q4 was only down 1% compared to Q3. We see a lot of potential for this market to grow and evolve into a Solar Plus battery market as utility rates have moved higher and are expected to increase even more in 2024. In Germany, our overall sell-through in Q4 was down 32% compared to Q3. However, we saw sequential growth in activations for both solar and batteries as we continue to gain traction in the region.

We are introducing our products into more countries in Europe. In the last few months, we have entered U.K., Sweden, Denmark, Greece, Switzerland, Austria, Italy and Belgium markets with our IQ8 microinverters and IQ batteries. In Australia, we are seeing growth for our Enphase Energy systems powered by IQ8, microinverters and IQ Battery 5P, latest third-generation battery, which we introduced in June of 2023.

In Brazil, our sell-through is stabilizing nicely as we focus on building the installer base. In India, we are starting to ship our IQ8HC and IQ8P microinverters to support high-power panels. In Mexico, we just recently started shipping IQ8P microinverters for residential applications. As a reminder, IQ8P is our highest power microinverter at 480 watts AC for both residential and commercial applications.

Enphase Energy, Inc. (NASDAQ:ENPH) Q4 2023 Earnings Conference Call February 6, 2024 4:30 PM ET

Company Participants

Zachary Freedman - 投资者关系负责人

不良 Kothandaraman - 总裁和首席执行官

Mandy Yang - 首席财务官和执行副总裁

Raghu Belur - Chief Products Officer, 高级副总裁兼联合创始人

Conference Call Participants

Brian Lee - 高盛

Colin Rusch - Oppenheimer 科林·鲁斯奇 - 摩根大通

Julien Dumoulin-Smith - 美国银行

Philip Shen - 罗斯MKM

马克·斯特劳斯 - 摩根大通

Praneeth Satish - 富国银行

Eric Stine - Craig-Hallum Capital Group 埃里克·斯坦恩 - 克雷格-哈勒姆资本集团

Christine Cho - 巴克莱

乔丹列维 - Truist证券

Kashy Harrison - Piper Sandler Kashy Harrison - Piper Sandler

安德鲁·佩尔科科 - 摩根士丹利

Joseph Osha - Guggenheim Partners 约瑟夫・欧夏 - 戈根海姆合伙人

Auguste Richard - 北地

Moses Sutton - BNP Paribas 摩西·萨顿 - BNP 巴黎银行

Maheep Mandloi - Mizuho


Vikram Bagri - 花旗集团

Pavel Molchanov - Raymond James 保尔·莫尔恰诺夫(Pavel Molchanov) - 雷蒙德·詹姆斯

Austin Moeller - Canaccord-澳金证券


下午好,欢迎参加 Enphase Energy 2023 年第四季度财务业绩电话会议。所有参与者将处于听取模式。【操作员指示】。请注意,本次活动正在记录。我现在将会议交给 Zach Freedman。请讲。

Zachary Freedman

下午好,感谢您参加今天的电话会议,讨论 Enphase Energy 2023 年第四季度的业绩。今天的参与者包括我们的总裁兼首席执行官 Badri Kothandaraman、我们的首席财务官 Mandy Yang 以及我们的首席产品官 Raghu Belur。



现在我要介绍Badri Kothandaraman,我们的总裁兼首席执行官。Badri?

Badri Kothandaraman



让我们谈谈运营。微逆变器和电池的整体供应环境非常稳定。我们先来谈谈微逆变器。我们在美国的代工厂向客户发运了约 91.3 万台微逆变器。去年12月,我们宣布将停止在罗马尼亚和威斯康星的代工业务。我们将与我们在南卡罗来纳和德克萨斯的两个现有合作伙伴在美国进行微逆变器的制造。目前设在罗马尼亚和威斯康星的设备将被重新部署到其他设施中使用。在上半年完成我们的重组行动后,我们预计全球产能将达到约 725 万台微逆变器每季,其中 500 万台将在美国生产。



在加利福尼亚,我们整体的售出量在第四季度比第三季度下降了7%。与第三季度相比,我们的微逆变器售出量在第四季度下降了27%,主要是由于NEM 3.0过渡所致。然而,由于NEM 3.0系统的高附加率,我们的电池售出量在第四季度增加了58%,符合预期。正如我们在上一次收入电话会议上讨论的,我们的安装商需要几个季度来完全过渡到NEM 3.0和正常的销售。稍后在电话会议中我将提供有关NEM 3.0的更多统计数据。




我们将我们的产品引入更多欧洲国家。在过去几个月里,我们已经进入了英国、瑞典、丹麦、希腊、瑞士、奥地利、意大利和比利时市场,我们的IQ8微逆变器和IQ电池也已在这些国家获得认可。在澳大利亚,我们的Enphase Energy系统配备了IQ8微逆变器和IQ Battery 5P,这是我们于2023年6月推出的最新第三代电池,我们已经看到了市场的增长。



黄骚骚02-08 15:33