ENPH reports financial results for the 3Q of 2021

Enphase Energy, Inc. (NASDAQ: ENPH), an energy technology company and the supplier of microinverter-based solar and battery systems, announced financial results for the third quarter of 2021, including the summary below from its President and CEO, Badri Kothandaraman:

“We reported a record quarterly revenue of $351.5 million in the third quarter of 2021, along with 40.8% for non-GAAP gross margin. We shipped approximately 2,599,575 microinverters or 913 megawatts DC, and 65 megawatt-hours of Enphase Storage systems.

Financial highlights for the third quarter of 2021 are listed below.

  • Record revenue of $351.5 million
  • GAAP gross margin of 39.9%; non-GAAP gross margin of 40.8%
  • GAAP operating income of $37.4 million; non-GAAP operating income of $85.9 million
  • GAAP net income of $21.8 million, non-GAAP net income of $84.2 million
  • GAAP diluted earnings per share of $0.15; non-GAAP diluted earnings per share of $0.60
  • Cash flow from operations of $113.4 million
  • Ending cash, cash equivalents, and marketable securities balance of $1.4 billion

Total revenue increased 11% compared to the second quarter of 2021. We worked diligently to meet the surge in customer demand while successfully navigating global component supply constraints and logistics challenges.

Our non-GAAP gross margin was 40.8% in both the third and second quarters of 2021, as higher logistics and expedited costs were partially offset by a price increase on microinverters and cost management. Non-GAAP operating expenses increased to $57.3 million in the third quarter of 2021, compared to $51.7 million in the prior quarter, primarily due to additional investment in R&D and marketing programs, along with increased hiring. Non-GAAP operating income was $85.9 million in the third quarter of 2021, compared to $77.2 million in the second quarter of 2021.

We exited the third quarter of 2021 with $1.4 billion in cash, cash equivalents, and marketable securities and generated $113.4 million in cash flow from operations. Capital expenditures were $12.7 million in the third quarter of 2021, compared to $16.4 million in the second quarter of 2021.

Strong demand for our microinverter systems continued in the third quarter of 2021, while shipments of our Enphase Storage systems increased approximately 51% compared to the second quarter of 2021. Our Load Control feature gained significant adoption during the third quarter. This feature provides homeowners the ability to conserve their energy consumption by shedding non-essential loads during an outage and thereby extending the backup duration. We also made several software and hardware updates to reduce commissioning times.

Product innovation remains at the cornerstone of our growth strategy. Yesterday, we announced our all-new, all-in-one Energy System with IQ8™ solar microinverters for customers in North America. Since the company’s inception, we invested in custom application specific integrated circuit (ASIC) chips for our microinverters, and today we see the payoff with a software-defined microinverter smart enough to form a microgrid. Many homeowners often assume that their solar systems will function if the sun is shining, even during a power outage. This has unfortunately not been true until today. Now, with IQ8, homeowners can realize the true promise of solar — to make and use their own power. IQ8 solar microinverters can provide Sunlight Backup during an outage, even without a battery.

In addition, we recently announced that our home energy systems will soon integrate with most leading models of home standby AC generators, providing enhanced performance and a glitch-free transition for homeowners during power outages. Homeowners can also monitor real-time power flow, start and stop their generator remotely, set quiet hours to prevent their generator from operating until their batteries fall below a designated threshold, and control it all with the Enphase app. The new feature functions without a generator automatic transfer switch and eliminates the power glitches that reset home electronic appliances when switching to generator power.

We continued to make excellent progress on digital transformation. Both of our recent acquisitions achieved record revenue in the third quarter of 2021. Enphase Montreal, which provides design and proposal software, added a significant number of new installers. We plan to release several new software features next year to improve the installer experience. Enphase Noida, which provides proposal and permitting services, also experienced a significant increase in customer demand and is focused on automating the creation of permit plan sets to further expand the installer base.”

Author: KS

Source: Enphase Energy, Inc.

Topic: Finance | Solar Business

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