Enphase Energy’s Q1/2022 Financial Results

Enphase Improves Q1/2022 Revenues Having Shipped 1,029 MW DC Microinverters

Enphase Energy’s Q1/2022 Financial Results

Having delivered a strong quarter in Q1/2022, Enphase Energy has guided for its Q2/2022 revenues to add up to between $490 million and $520 million. (Source: Enphase Energy, Inc)

  • Enphase Energy shipped 1,029 MW DC of microinverters and 120.4 MWh IQ Batteries in Q1/2022
  • While the US market accounted for 84% of its quarterly revenues, it expects the Europe market to account for over 40% sequential growth in Q1/2022
  • Management remains confident of managing its supply chain and logistics issues related to the pandemic

US headquartered solar PV microinverter supplier Enphase Energy’s Q1/2022 revenues improved by 7% QoQ and 46% YoY despite the global supply chain being ‘under stress’ as the management remains confident of its supplier management and ‘qualification of alternate suppliers’.

The US market having increased 9% sequentially and 49% annually, accounted for 84% of its Q1/2022 revenues of $441.29 million, with the remaining 16% coming from international markets.

In Europe, it suffered a decrease of 6% QoQ but improvement of 39% YoY for revenues citing ‘unforeseen shipment delays’. Going forward, the management expects revenues from this market in Q2/2022 to register more than 40% sequential growth. To increase traction in the European market, Enphase is also adding a manufacturing line at Flex’s Romanian fab which will come online from Q1/2023 (see North America PV News Snippets).

Latin America also saw its revenues increase 13% from last quarter and more than doubled YoY.

It shipped around 2,838,693 microinverters or 1,029 MW DC of microinverters and 120.4 MWh of Enphase IQ Batteries. While its IQ Battery shipments increased 20% on annual basis, microinverter shipments dropped 6% compared to Q4/2021.

During the reporting quarter, it locked in GAAP gross margin of 40.1% and operating expenses as $115.15 million. Operating income was reported as $61.8 million and net income as $51.82 million.

President and CEO Badri Kothandaraman said the company is vigilant of the global supply chain and logistics challenges due to COVID-19 related disruptions. He added, “Our overall customer demand for Q2 is quite robust for both microinverters and batteries and exceeds the higher end of our guidance range. The component availability is better than what we have experienced in the last 18 months, but there are still global challenges, which are not specific to Enphase. We remain optimistic that the lead times will come down by the end of this year.”

Regarding COVID-19 related lockdown in some cities of China where it operates manufacturing lines, Kothandaraman assured that Enphase fabs remain open there as the shipping lines remain open too. There are ‘hiccups’ in raw material availability but it is better than last year.

Guidance

For Q2/2022, the company has offered a strong guidance of revenues between $490 million to $520 million, including shipments of 130 MWh to 140 MWh of Enphase IQ batteries. GAAP gross margin is guided to be within a range of 37.0% to 40.0% and operating expenses as ranging between $127.5 million to $130.5 million.

Enphase also touched upon the ongoing antidumping and countervailing duties (AD/CVD) at the behest of Auxin Solar in the US. The management said it creates ‘massive uncertainty’ impacting jobs, raise electricity prices for homeowners and increase import from China, hence the Department of Commerce should resolve it much ahead of the August 2022 timeline.

About The Author

Anu Bhambhani

Senior News Editor: Anu Bhambhani is the Senior News Editor of TaiyangNews. Anu is our solar news whirlwind. At TaiyangNews she covers everything that is of importance in the world of solar power.Before joining our team, Anu worked in various positions at publications of the Times Group in New Delhi. As a Principal Correspondent, she conceptualized special features and supplements for both The Times of India and The Economic Times. While Anu delved deep into solar at TaiyangNews, environment topics have been close to her heart before. As Assistant Editor, she was responsible for launching Planet Earth for The Economic Times, a special series on environment. Before joining the Times Group, Anu was a Copy Editor at the Hindustan Times.Anu holds a Masters degree in Journalism and Mass Communications from the University of Rajasthan. She also studied at the Centre for Science and Environment in New Delhi on E-Outreach: New Media Technologies for Advocacy and Strategic Communication, Social Media

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