ENPH - Earnings call transcript Q3 2021

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Operator

Good day and thank you for standing by. Welcome to Enphase Energy's Third Quarter 2021 Financial Results Conference Call. At this time, all participants are in listen-only mode. After the speaker’s presentation there will be a question-and-answer session. [Operator Instructions]. today's being that advised be conference recorded. is Please turn over to would now speaker conference to like I your the today. Karen Sagot, please go ahead.

Karen Sagot

XXXX. thank discuss Third and and conference - Badri today's afternoon, you 's us A joining Good President market the Enphase on call and issued XXth, call a are to Enphase Officer, Branderiz, results Executive ended today, the XXXX - Chief Enphase quarter Quarter 's Chief Financial Kothandaraman, release Energy announcing closed results. Eric A Officer. for On for today's third After the press September

this make to risks too, including in During markets expectations. and growth conference which Energy performance, statements, statements to call, customer and to in technology and differ related manufacturing of will installer Enphase in partners. potential 's these limited availability of materially Energy's the events the forward-looking and not we could capability timing operate our future significant uncertainties anticipated in sales including financial forward-looking benefits and target, the management the features, but actual results homeowners operations, and Enphase service, from expected our including These statements our and and Enphase the and products, involve

used with any or filed Energy statements which XXXX, forward-looking any update be please cautions file complete in the GAAP the noted, to financial no to more the Relations its result which basis, reliance this future press of ended SEC year otherwise on reconciliation place XX, unless non-GAAP that Investor provided can during statements discussion its financial call to Form and quarterly release of For a measures financial new section earnings XXXX. XX-K these undertakes which changes the on website. Company's exclude adjusted posted risks fourth and have information, forward-looking in measures not Also, undue expressed see on are and of The a a Annual its uncertainties, September ended has and the please Company to will found as for on charges. quarter the on XXXX, note XX-Q expectations. Form Report or events, December today, duty is you quarter a the measures report for of of certain XX, non-GAAP in Enphase be also obligation on been

to A and introduce Now, Chief Energy. Badri Enphase like President of I'd Executive Kothandaraman, - Badri. Officer

Badri Kothandaraman

and Good shipped cash expenses, revenue approximately strong to non-GAAP XX at good We afternoon, financial and systems. basis. approximately XX.X% third of operating non-GAAP million, results. free XX, XX% gross of discuss the We a thanks gross quarter income, Enphase million XX% of today exited had $XXX.X of microinverters, means X.X on record as all flow margin, achieved operating Storage us reported and We margin for XXXX a percentage hours and joining XX% third our quarter. XX, $XXX.X million. generated This XX. revenue quarter of a megawatt

the Eric XX. financial call. go financials detail into reminder, our our model in is a baseline about CFO later XX, As XX, will

discuss servicing are now Let's how we customers.

our was Our Net from unchanged North XX% Promoter Score both Promoter QX. and worldwide XX%, was Net QX Score American

on under in to times bit, time reducing a related wait additional X at little minutes to call through average a QX, business. in in minute training. our and We're growth the was up staffing to wait and X.X Our went call primarily compared QX, minutes working

on-site our storage. and increased the teams help We to the in experience. laser-focused for provide particularly service Europe We have remain installers, field to on of number U.S. customer

talk manufacturing. Let's about

is stress. call, global the discussed under chain we in have earnings As the past supply

hard better suppliers. primarily is due situation to and alternate getting work our Our qualifying

now FET we AC have suppliers drivers, qualified. the X For

better in AC of drivers supply quarters. much is than prior Our FET QX the

our we in but yields bit AX we the manage a For situation. on are little expect the tight to supply, microinverters,

worldwide quite given happy is the with supply overall the growing for demand. QX, well We Is are we for situation supply the While chain both vigilant Kashy logistics. as remain dynamic and as

we our adding our given microinverters. Mexico in demand, automated a in fully million strong capacity to QX, in quarterly X.X line are So, approximately Mexico bringing

to achieve global automated already capacity per in quarter QX of have million India by a our X line capacity existing Along to year. million the that We end added at contract quarterly microinverters in in we second bringing expect manufacturing India. our fully our in target with partner easily X.X microinverters the of capacity China, over

capacity of two-thirds of contract diversified our outside geographically now China. have manufacturing We

about now Let's batteries. talk

total for the XXX. have battery Our hours megawatt XXX X cell of increased per packs a sources approximately from capacity to quarter

more required. Our adding capacity global working adding the are on existing achieve capable are we XXXX meantime, additional to In suppliers of diversification. in suppliers

port expect lead we approximately logistic the shipping These global shipments condition of down these Despite for weeks systems Our our XX% systems storage come times long challenges. today times in and by to are sequentially entry once the at headwinds, to improve. due XX will QX. storage increase constraint lead approximately

the move regions. on to Let's

for storage. to in U.S. market strong and we QX quite XX% We microinverters, was Our through record in sell record had reported mix and our distribution installers was revenue QX XX% demand and International and or from revenue. partners U.S. respectively. both, The

to a storage healthy tight, inventory While end QX, of level and channel demand at our channels inventory at microinverter logistics our strong due remained was the issues.

inventory channel Europe, channel get remain we in storage revenue and microinverter QX. inventory in to better. expect expect We In to manageable record reported QX,

continue solid We growth and Netherlands, France, have Spain. in to Germany,

America, in to with providing a entry continuing Europe. we lot Europe. month customers Italy, In selling Our Storage our of In just Asia-Pacific installers. in where storage into we and the further pleased to began microinverters are in products this growth of we [Indiscernible] IQX Network, primarily is September, bit ongoing to QX, strength growing Installer systems reported Australia. the Enphase and our we region, are QX, Earlier and family in little Belgium, pleased our a expanding announced systems revenue disruptions, in the largely installers. solar Germany business due in product, of are lockdowns the sales growth we our Overall, October, Enphase record Latin Rico. residential increased continued getting due COVID of AC in declined very the in IQXA In high-power with Puerto of to storage I'm the availability adoption in train to started, of revenue chips. we Despite model

the about in next We Rico, our are business quite quarters in and few storage. steady especially expect optimistic growth Puerto

early We and started Brazil September, shipping installers + entry also announced into microinverters our in October. in IQX

have the the we discuss that QX. overall let's covered regions, Now bookings for

exceeded for The guidance. high is component QX but end of better again compared in there the QX, currently demand fully Our yet. overall customer our not availability QX much once to

by to up We that our are supply early will year. next optimistic catch demand

Let's increase was our storage to from update QX. shipped a move systems an systems. XX-megawatt QX, We which Enphase XX% now hours on of in storage

for Enphase systems. Company. the end of training representing QX, X,XXX discuss XXXX trained Let's unique storage the installation we had personnel, By approximately installer

installation Control, commission two non-essential with features to which their introduced mobile Our and in We visit energy lead extending to recently duration. vans training started install the through backup time system hands-on and which an our and [inaudible and outage homeowners will hours. training by valuable systems. ramping also centers, QX hands-on installers system. introduced shedding late allow an loads XX:XX:XX] May, sessions experiencing conserve storage ability and real Enphase our a the for installer provides storage In during consumption training attending few Enphase in new Load during less the than site, thereby we with electricians

power for is Load for our circuits energy most app. feature systems has leading standby app. full until to certain November. will and appliances the reset in the grid our set Switch. the announced their we to Control Homeowners below enhanced functions be the have charge, homeowners We will during These automatically outages. of state stop by Smart remotely, it power quite designed configurable performance and batteries from AC generator controllable be a event fall the a that failure. flow, their and and and of present, time Enphase new feature homeowner the shed loads will monitor generators in control via feature automatic a This with switch on glitches dedicated switching models can soon and grid when This with into home installers home of week, glitch-free generator their operating U.S. our in hours new start all prevent generator power. a providing that to home Enphase transfer Last without generator integrate available when eliminates transition power This real

focus the an features see acceleration new to our addition Enphase plus systems. on we in storage for demand customer we of With our see continue to these continued -- laser experience,

QX. in XXX ship to expect we hours storage result, between a of megawatt and systems Enphase XX As

for Let's Company's IQX inception, we Unlike America. microinverters form new using during IQX talk backup system a Enphase competing Energy about a yet. that our new can products. the even microinverter and Many true today. smart often today customers in This in battery. Since is have a all until if announced outage without not is the integrated providing power we even microgrid microinverter outage. sun systems chips a a a payoff IQX is Yesterday, microgrid. microinverters, with form we the assume devices, big North unfortunately a to all-in-one sunlight, power Enphase's smartest their shining, invested custom enough specific homeowners applications. for see function power will during solar with software-defined being Solar

the IQX IQX with their The IQX, make outage, realize in can power. can with homeowners a during true comes even sunlight and X promise an without solar Now solar, Energy different system battery. microinverters configurations. own use Enphase backup to of provide

to is solar is system is that first everybody The used standard a only, which grid-tied today.

sunlight talked a backup, which just without battery. second is about, I The

with interesting. a solar The nighttime independent. Essentials battery It's The energy battery. a fourth, glow Home is large and system the third backup. full with power IQX backup and A for very small

Enphase three as first the tied which configuration, the an system configurations system Switch, which grid standard the during a are Smart is agnostic system, or an need grid islands outage. remaining While a I home controller mentioned,

a December. customized solar And an We will QX. system. sizing homeowners installers ramping to the for piloting in Enphase are beginning of homeowners can battery in For battery, Installer All shipments we want IQX Enphase no there select be an help valued QX restrictions started with our be who in configurations partners. with the pairing IQX

much quarters, take We six like to the to four expect IQX ramp. the IQX ramp

few Let me about IQXD. words a say also

IQXD for small AC DC commercial of the XXX-watt capable business. So microinverter supporting solar panels, X is power high the primarily

QX, piloting business, improve select to our expect and IQXD is very for cost small us, important but We and in solar only batteries we QX. the increase begin also the not structure. start installers in for shipments our next-generation production with as product power to This discharge commercial

design also base. and which digital Both will and significant record permit in Let's software, revenue business. installer Network next new transformation. Enphase turn plan QX. to Enphase release We and on proposal a added it's permitting leverage year services expand plans for Montreal, to recent and further provides a proposal sets installers. installer our installers, experienced customer achieved to new improve automating to acquisitions early to Both which expand significant of Noida, the demand, provides in the features of Enphase number several the grow experience. software Installer their creation focused teams significantly increase of

Let an update Installer EIN. our give Enphase you me now Network on or

to highly focused and We a installers worldwide, now quality Enphase have through our our approximately on Network Installer experience. thousand homeowner process selective onboarded

and pleased with [inaudible XX% an to homeowners. very the its who year. XX:XX:XX], thankful this experience has to our provide are Our since our product as grown U.S. demand in introduction EIN progress installers exceptional We're initiative's act last

we the Let's by program talk about three Solutions implemented Connected electrical is the quarter, grid in demand participation Northeast our high discussed which services. yields an U.S. s. period Last reduce to incentive utilities program in during

participation customers using Our program monitor, Massachusetts, track Enphase the Island control earned, in and app. can Rhode storage and Connecticut, sign-up, money the in

who on are in This to Island in incentive battery. services Oahu the new Hawaiian QX great for our battery announce pleased program a installed of We the Electric program. homeowners bonus home offers 's participation new a

renewable eligible be plus a Hawaiian fixed kilowatt The each commit available helps into will XXXX, Electric more during day. system. accepted X-hour the power goal than by customers per XXX% to realize ever Hawaiian storage and make [Indiscernible] by before the receive homeowners $XXX period first The to program than of Electric program they

cut made [Indiscernible] have and compatibility our progress more with in solar ahead. during the soft installers storage, grid part of are System. as We we engage the costs. We're Energy order digital load to now generator Home control, with grid program in progress this the months to aggregators overall summary, expect pleased have In making Management platform we year. services, and We services our for on significant

and superior deliver laser-focused and installers platform digital experience products to will more I'd make homeowners. both important a on to We our one customer like announcement. for remain the the both

on a weeks. review We the that, the follow provide call over will XXth our Day to will finances. hand to details on November the be hosting More an With Investor deeper next business. I over update Eric. few Eric our of for will

Eric Branderiz

I related our as XXXX our for Badri and to everyone. results, third provide Thanks, outlook financial good more afternoon well XXXX. of quarter quarter of business fourth the details will as

net was in and We systems expenses same primarily was XX in and today, Non-GAAP compared infrastructure, the logistics quarterly Non-GAAP was be a for was QX. sequentially QX Investor hours which cost our marketing programs. record. million increase $XX.X a website. $XXX.X expedited Total approximately partially to our of due gross to megawatts in increased sequential operating as [inaudible reconciliation Enphase can non-GAAP Non-GAAP was margin on and was investments in microinverters have GAAP for XX.X% by DC operating provided found XX.X%, continued of gross margin million GAAP the for $XX.X revenue increase XXX quarter. management. GAAP measures QX. of IT also awareness expenses offset price On were margin of to QX. earnings-per-share $XX.X compared diluted operations intangible for for gross of net million GAAP higher This basis, shipped of non-GAAP acquiring We XX:XX:XX] and in $X.XX income microinverters million, costs, QX, for R&D, basis, a compensation The for On an operating QX $XX.X brand and these posted impacted million for earnings for $X.XX for by storage million of share QX. was $XXX million included Relations QX. QX megawatt for release $XX.X QX GAAP expenses representing a the $XX for QX QX of income to per income acquisition-related $X.X non-GAAP QX. a financial increase section XX% from to compared for to for for diluted for $XX.X a and for for earnings million stock-based for $XX.X compared to net $X.XX GAAP $XX.X income compared was QX, basis, share QX GAAP $XX.X and for operations was to QX. QX per million of compared QX. income GAAP million $XX.X amortization assets. $X.XX QX. of QX. million per million diluted expenses QX, million On million million share to from compared for $XX.X was to compared earnings resulted was expenses

Now outstanding the at to days expected $XX.X in to front. compared was end to of of sequential due the lead longer solar end inventory QX the end the working of increase the compared chain as to Inventory XX and support supply Days Enphase capital was and times logistics days at sheet well for the due at million QX. XX of to million of balance the end as higher our growth systems was -- QX QX, demand storage growing turning QX The and the in grow challenges. our demand. to at $XX.X

authorization. days a target in Accounts well from of our and compared did receivable quarter. $XXX decreased operations the DSO share at total end the in in historic expenditures $XXX QX expand QX. against not free approved to $XXX.X was and development on million $XXX.X QX, manufacturing repurchase and $XX.X $XXX.X Capital help any marketable Our $X.X -- billion balance XX the for We billion approximately days. approximately to QX recently we is flow. cash website flow and million share cash points of equivalent as QX, for million $X.X of In XX the million cash microinverters generated exited million million We compared make end QX. were of costs related XX to both repurchases days end to at IT. capacity at securities and prior with QX, cash

let's the for fourth of Now XXXX. our outlook quarter discuss

$XXX have $XXX a which storage of the for to XXX to XX Enphase megawatt picked to hours quarter systems. includes of We million, our range of million within be revenue shipments

be XX% to XX% a gross margin to to GAAP non-GAAP expect gross within and excludes which range of to We margin within range expense. XX% of be stock-based our XX%, compensation

related to within expect stock-based GAAP be expenses million $XXX million a operating expenses of We to total expenses our amortization. a approximately including of acquisition range $XX and for compensation $XXX million, and estimated

within to our $XX operating non-GAAP to expenses our $XX of expect be million. range We

a guidance as Let me color shipments shipment. as few systems microinverter provide including an some increasing topics. additional well storage revenue a The on IQX, assumes

ship to QX, XX% midpoint expect representing XX of to Enphase the growth in of approximately at hours systems sequential guidance. We megawatt storage XXX the

production component Enphase and We improved microinverter the for momentum for in systems. expect availability storage QX, continued

are side, cost supply the finished of to goods we QX customers and in On expedite have continuing components adequate ensure to our products. an

expenses on It and we prudent half our remain second component and as component is all supply increase by as challenges. implementing the expect to us are also We of to logistic continue levels increase navigate modest the driven expedited at baseline in QX. price logistic starting in global Due steep QX. cost the quarterly increase in financial the costs a model products inflation, constraints we to for similar to maintain

OpEx Finally, guidance. I would like touch to our upon

guidance operating increase to revenue a for Our QX. non-GAAP as percentage in expenses expected of is

on OpEx, baseline comfortably income. at times, be earnings XX% above mentioned we slightly our operating the maybe targets to our expect XX% call, we but As above last still our of target

advancements, reliability. software cost, including our our significantly advantage. reduce and performance, to we on ASIC of system increase more in increase integration focused R&D further to cloud in invest semiconductor to Significantly, and continue are We our competitive -- software

with awareness. new marketing up the and year our back-half of launches ramp product in brand also the expanse We

from post-combination accruals acquisitions are expected be the prior questions. open approximately for expenses for to will million. With $X.X line that, I For QX, now

Operator

limit one then one [Operator follow-up re-queue. and yourself Instructions] We and question please ask that you to

Our question Goldman first Lee comes with Sachs. from Brian

open. is line Your

Brian Lee

Hey afternoon, Kudos for the guys. here. the Good thanks results on taking strong questions.

about talk guys I into and any I'm channel just you based that guides. how around storage that the know was talked supply wondering, again just constraints chain Eric, you expedite, close all XX% the talked this is? the product a there, And concerns in XX% one or I embedding XQ to Badri, on logistical with had little here chain or it sequentially supply if the already headwinds First are shipments? out or business. that you are growth bit you're of there the is about visibility but can into or that's kind number about de in growth -risked

Badri Kothandaraman

Yeah.

Enphase we that We've when a installers, comes expectations of last the get. So, we demand understand they color ease course, will architecture, of up. better of especially and is kind distributed just to our phosphate homeowner ease need the And lot to safe experience, of And learned you are chemistry, better We features install, And like get general of a the cooled. NPS give beautiful business lithium in when better air storage coupled, introduced notifications modular to why of storage interesting on us ease year, it system use, July and product, it the in Start, that commissioning. comes of customer beyond Power XX had It's course, future. to which my XXXX. starting optimize AC service, which so air picking our helped the with in [Indiscernible]. an to ion conditioner

So, has into a lot of it. gone learning

they customer May call quite in last software continuous in introduced in experience. helped of XXXX. hardware the earnings you Control Control made we and Load and of last have the We that a told bit terms year. in updates Load

optimize along the There's We it's of Control, simultaneously, thought introduction optimized that's a start with a are little Initially, then and lot the quite uptake. finding of pricing. Load we pricing. right did high, we we bit time also successful. to And our

improved improvement pricing, the drop-in with So, a of with Load that, started with the and lot we -- seeing we in did we Control, commissioning demand.

that the healthy number demand of unleashed lot more. and product and XX% from And as continuing we obviously, you QX, stay growth demand. So our to more that's improve saw QX. is a more And

So, for there is no QX. demand limitation

XXX Primarily, between said we will do that's anywhere QX, hours. For and gated XX megawatt by logistics. we

increased are the now couple scarce have increased container freight cost know, XX. quite is of you thousand to dollars Containers a typical costs is A to XX. situation used As container $XX,XXX. find; globally dynamic. the Ocean has

kind So, on there's on XX in a of lot That's supply to stress ship going to logistics, lot supply our hours. of XXX-megawatt of We're QX. stress chain limiting situation.

at the if thing adoption our about long installers really of the tail. which statistics, you is, didn't talk really, However, we're I tail astounding. the product of happy it's see by one is Long

them certified. installation complete -- have Companies trained XXXX And right the complete now. with are they And were to University. means Enphase real training, them. line they to have on not there's X,XXX Enphase XXXX XXXX certified the We over through only have installers our a Certified a over of install guiding

we So, to expect increase. number that continuously

We demand be to expect the broad-based.

up the and needs to situation up and go situation It's We demand expect up. to not global. specific improve of course, Enphase. the logistics And to

our much issue, are we a covered said, and cannot QX, pack the to regarding capacity, purely so be are expect We etc. QX contract situation With that we hours. that. XXX-megawatt now I say whatever to and what will therefore ship talk tomorrow. and I'm our because is I It's from dynamic Like logistics cell I afraid wrong covered manufacturers from right XX about

Brian Lee

a the with sort been makes Maybe you a of Absolutely, as question guys environment navigating sense. have Segway, fair I'd margins ton of anyone around as the I Yep, it bit this well as mean, enough. out there. out that of well. as just zoom

XX% XX% the of elevated sort costs, level issues. supply non-GAAP margin You've despite to price year these two you chain the increases. been all tracking despite have this all gross at this And

you I if then a of earning and into higher into the significantly supply that, And or know year, seems IQX some ball that be you presumably point of can't of chain coming got here next assuming where account, all at gross in. less there's crystal you margins XXXX; things lessening but it head logistics cost setup some kind these should normalize. You've you as like take

So, as guys. can gross higher you're you through bit? that why next at and you to move you margin speak some at be today a wouldn't Thanks significantly a at Where year? point

Badri Kothandaraman

that following -- and The puts the takes. is Right.

over folks our They costs see batteries, suppliers, component you up microinverters as XXX%. And some because us, ocean lot the by of the that, of costs now top supply who components gone chain is so which component on a are the freight same supply tight, I If I only have to and a you, the costs told of on are increasing us. the is ocean to have situation Not of -- in and airship many expensive. lot microinverters, apex just freight more money.

you hide tremendously. costs we right? over here, was the Wherever made are did last a What lot going So, of we go, I cost up reductions cannot have the year.

some them. able are price So, increases. of we situation But a absorb we to in we modest a to the tried increases absorb where to lot we That's did. were we And pass what exactly to cost some of have customers.

happen QX. that are in Now, you anytime probably is gross say, with elevated guidance charging. to I component margins we in to are whether three -- not do me. But gave and QX, so we going that or happen the sure quarters guidance. and XXXX to crystal not sticking with know I I our brings have don't down die are what's to situation next not to costs and fair going ball cannot better sooner predict I'm it's going the a suppliers the the a what's two logistics

Brian Lee

will I rest enough. Thanks, the take Fair guys. right. All offline.

Operator

Thank you.

with Our of next Li question comes America. from Bank Aric

open. is line Your

Aric Li

the afternoon. congrats the and quarter. good for questions Hey, on Thanks

the wanted just is talked how progress How much freight to before, you to been XX to impacting about directly speak XX well? storage target on and QX, mentioned I much on you that I First, in worsened an now. the that to offset your touch to you X XX-week the times. constraints? can efforts if controllable relative and of weeks know to lead as factors driven XX of able And by have by latter you logistics weeks

Badri Kothandaraman

is in situation QX. bit quite The a different

manufacturing. -- sense we a microinverters. no so are coming even the about doesn't is the The have is make batteries. global transportation -- global like cannot in logistics goods and all nd of is even more It costs air It scrutinized, logistics. supply to We constrain ship air problems economically unfortunately, our more, the just from ship it's the batteries all dangerous

are therefore, of all place these we are terms through gets transport the the the better in ocean. are everybody And as we So When where at a we else. we game batteries same stuck, situation where in the shipping eight But down then number, to improving are times natural constraints port over lead their conditions to weeks. away, the lead times the going for which we'll around start to drop the see XX is now, weeks.

Aric Li

Got it.

the already [Indiscernible] the were towards XQ on weeks. lead on And to about control accomplished XX XXX-megawatt times And hours. to the clarification there. So over towards also update, X your Appreciate manufacturing. the you talked weeks is embedding, you directly getting XX drop XQ,

that cell it. Appreciate over you at just volumetric Given XX hours. on ramp the the give the of higher weeks, -- the time higher quarterly megawatt capacity upside of about think us how an update against can outlook XXX you

Badri Kothandaraman

demand I capable what is said, cell it Like limitation. one two of a pack megawatt And our now, not is constraint. quarter. are purely right logistics suppliers doing It hours AB a

do quarter, too But XXXX. it's same have every to growth talk expect healthy, we at going we early our you had in if look for to me into So, reasonable XXXX, past especially history, the and about QX.

for growth, guidance. QX to and you However, but guidance the it exact in give etc., exact the QX we to would have

Aric Li

rest will the I take Thank offline. you.

Operator

Thank you.

next with Our from comes question Moses Barclays. Sutton

open. is line Your

Moses Sutton

on modest starts in increase? Congrats the for XQ, or in or question. XQ, my was taking Hi, inverter thanks price That To the this another increase. mid-XQ, already quarter. confirm

Badri Kothandaraman

Starts is This another in one. mid-XQ.

Moses Sutton

of two are DIN, maybe contributing, if much Great, run-rate acquisitions, of a on And recent the to and percentage annualize desk Soft then today, great. how were the it? revenue we

Badri Kothandaraman

going not to breakout much. We're that

give earlier we are year. that X companies this me color. some you acquired Let There

for installers tool Softest, called that Solargraf. one first the and proposals was they and The have is called design

in they working get some panels expect limitations. done. Right on And the the they basically, They now, those on on to working year. so cylinders, Obviously, bit early by the Solargraf can all what on a firing we a had those the can roof, and XD, that COVID. to team table. results. by there, installers can on that team to they released they have we all hiring kitchen be were of the do, we're solar which the proposal discuss at can exactly affected calculation, we're next is The But added little drop team, adding smart is go very of we're a they are have working we shaving, and improvements all storage, is understand

a will that for so best-in-class tool installers. And become

Now, guard second DIN. an permitting is This that installer and DIN phase. proposal the is services. does one Company

home. here permit of a hours. Or, X address the is Here want the are about the in want plan I I details. details the a contract proposal set.

You a create XX are and hours. me to permit it in give to set plan

the is of I to the those will done, is now plan is zero. installers. quality Very name that They're Noida that plan so long-tail And India. the get introduce of increase proposal does Enphase servicing our in growth healthy to on can near sets. the turnaround and big installers. capability sets, the automation QX once turnaround a they're services. time keep the going permit the They're we city to And -- basically that then of permit northern working game So, automation that for team all us right time our team we Noida and the and permitting and

Moses Sutton

exciting. very That's Great.

Badri Kothandaraman

and well. summarize, them QX, those doing to records exceptionally I going Just they expect hit QX, perform new hit well to X in forward. in They records are

Moses Sutton

Thank great. Very you.

as how last to shipments Just squeeze By outside XQ, a one. storage of your of much the U.S.? one are percentage

Badri Kothandaraman

We just into It's material Germany. started shipping this not point. at really

not easy. As you is you to is demand it's great -- comes trained. country, need business know, It it going installers. long block which shipping build not of training, the and survey you of to of most long tail know into and good installers come to means easy a get We from It's when start support. But like tail need a customer just about Europe to great thing to that. most great how And installers Training installers. steady. product we is tackle install, a

say well is is now, Right So, storage. this doing the -- in international material business. stage extraordinarily I would not U.S. it at

Moses Sutton

Great. the offline. Thank take I'll rest you.

Operator

Thank you.

J.P. Our comes from with Strouse question Mark next Morgan.

Your line is open.

Mark Strouse

Thanks questions. for our taking very much

these like curious some about products So said, accelerating just to of improving thinking that things storage understand sustained, more accelerate improvements your like the are But that are Does extent IQX you of some that, supply is and that globally. potentially this assuming very chains how at just those are product all? the of the roll-out fluid. you're sustained? -- If plans

Badri Kothandaraman

are things which it situation our i our I in FET was AC logistics the We talked pivoted. not we X was was some some year, -- last control we our in X. early think not is are things QX driver control, control. had there early suppliers What Whatever in supply. control. in basically our There was the about which already in which -- this we did

X it's suppliers. Now

drivers by have problem the So simply a qualifying FET work and really, AC lot more hard solved we of suppliers. the

standard few needs grid, Now, The power solar system the produce that lot We produce a system will not frequency are the that let's long is outage as solar IQX grid IQX why we during to -- reference. know will shining. IQX is the going the the homeowners is IQX. a -- their come us assumption a as is now, make as voltage of huge true. until is -- difference under think Why interesting only to possibility. and sun offers power of that a not

reference, power don't a solar that standard a grid there is from voltage have So and you therefore as no therefore, system. frequency shutdown, during

IQX paradigm. a that changing are We is microgrid microinverter. farming

on with words, this there the we there And storage, there storage it interesting to you storage, roof, is is no the storage extreme does two, So, be size think infinity. case if is solar is not thing infinity. no the IQX any is is require solar to ratio opens up In particular divide the There other of very about it. one possibilities. other at paired

X can backup backup. our sunlight It's the talked the of in any that, said blazing X So, I case event IQX is about, a adjust Having grid case conditions. of without itself fuels sunlight using use outage. which that storage to fast kind and grid

battery comes, would to with want want because some along mainly when Now, cloud a lose immunity it time, small that buy our cover a you we think you At customers don't power. there.

So, a a resilience. buy a battery. small perfecting will need can to small order Then, you you be battery make buy you to sure large enough have battery, don't

with solar is happy only year. case only happy X twice fine. power say, I'm backup, is might solar, I -- I'm a just need sunlight and I use no, lose people perfectly with Some which

the help homeowners what so -- homeowners installers. Now extremely own need of their of of But provide with way their choosing the Because to important Enphase there. will according what our are the needs. want installers range entire to have they educate they

be you So product you buy this type specific you new going any changer. that a to for grid have product have we game there side by are it's type going ramp. agnostic you to and about product make when as normal take to education huge time, I grid product? process going side, a and some will difference product, But think be When a our is who's we grid with will numbers, And business going a forward. have give IQX. but didn't to excited a question,

Mark Strouse

much, Okay. I'll take the you rest offline. Badri. Thank very

Badri Kothandaraman

Thank you.

Operator

Thank you.

Oppenheimer. question Colin next comes from with Our Rusch

is line open. Your

Colin Rusch

aggressive market more of the to enter Thanks the way, speak before little into in IQX you you so rooftop even guys. potential introduce commercial Can you the enabling a much, to IQXD? bit

Badri Kothandaraman

IQXD a And fantastic installations, late are little is the And bit are introduce IQXD. really I product structure. with call going which happening there, pilot are yes, to We but a beta this installations, imminently cost we quarter. a

they form accept perfect business Enphase You qualities, can the solution. factor for two-panel AC a commercial And all a still XXX small very high are of one-micro is And into have Maintaining the packed IQX. slightly commercial folks the business. small watts and than bigger quality. only it that's

your answer to So, question, we IQX. are going introducing to be

-- going are quarter. the we start are first in step only let to We back. me Not ramping

for for enable go and building, quick draw estimate system. thinking a design asset product he school, and all will the as about station, manager He'll able a get proposal. day system able was entire able He'll actually microinverters a we given you what a microinverter a are get it whether made touch He to with possible hotel, not He Enphase. able tools. flexibility be an that on an our And thing, do for or an able installer are permitting in gas a management. to day, if services on given enormous have and be one and an about short website able a see to is and or what for profitable to go by a not. He a of do important be wants. fleet mean I to What roof. fleet a be money, on he to he'll only, we thinking work, manage On call be his We entire button, as wants on it to resolution he'll the doesn't to and IQX doing wants comes incredible will and which he will -- be needs. a will to be more

its folding. asset the is with system. our And about installers managers, we're towards a end-to-end towards end-to-end thinking with this a the So, view with view

going bit So in that, I QX. ramping said QX and that's Having like said, pilot where what we have to we're it in taken a start of time. little

Colin Rusch

That's question. into helpful. And second my nice segue a it's

functionality a data? additional And a that's number are systems performance systems, these all monetize monetizing the of you Company the But curious the a to talk on granular you with that I'm collect on years. the that the around lingered data. for how lot can also, and about data something these for your of level. guys been potential So, you approaching It's of that strategy

Badri Kothandaraman

monetized right having fingertips. at now, the tell better haven't we it's you our where truth by to Well, places -- is bluntly, get tell the you helping But enough. information us

We are -- than better customers able problems call to words, don't meaning, to call in need predict the customers. we us, we can other

service, terms in customer that's in and terms monetization. of So of

Eric Branderiz

that us, is in that yeah, I microgrid top -- the can embedded build resolve says cost Badri thing consumption information that to -- for the will terms algorithms incorporation to is platform is experience, of energy of patterns outside of extreme like immediate value and mean production ultimately trading. XX:XX:XX] on. in management to intelligence artificial behavioral say and tertiary controls. be the the the our trading only of [Indiscernible] I monetization And issues important do so to on service using home the super that [inaudible that elements mean I And of

are there So, multiple layers that. on

packing thinking the is monetizing So, selling -- about it information third-party ultimately and works if it you're Badri? right a to that now, not in into right

Badri Kothandaraman

most in day the commercial for people of business, do important No. is what What lose we they think is even one care the cannot Extremely small them. about savings.

Nakar if holy You happen, they with that, we that's proactively grail. if and -- network cannot hyper look analyze problems to Therefore, can fix lose able be if day are can the of before our that we savings. at operation we X and center

Eric Branderiz

fleet solution the having a differentiated power services of all how And power to solution, of forth. our platform power imagine at this regulation, ultimately the available and allow dispatching. bundle for For information capabilities the availability regulation for for is manager the IQXD so performance, be monetize will dispatch on as ability asset projects, a asset within frequency commercial performance the at or panel -- use. [Indiscernible]. very their to Meaning homeowner one to the and follow, formation the for forecasting to and the very We is upgrade, so and easy having manager of is use, in very going finally, and to transparent, our be level, metrics frequency developed [Indiscernible], area on asset easy that the also sold monitor update, all understanding will. voltage the call And doing the that battery to regulation, grid platform, it

in of are those right the now data have pieces we that line. So

Badri Kothandaraman

Yeah. We'll Day. bit Analyst at talk little the more a

Operator

you. Thank

Shen Philip Partners. Our next question with from Capital ROTH comes

Your line is open.

Philip Shen

the terms But of more. that situation in like be to it everyone. or 'XX? color limited bottleneck Hi, already. questions. know you it going bunch fair the the of to might meaningful dig Wanted improvement Congrats the on of gave availability taking the into chips perhaps component Thanks Is bit maybe back-half for catching by a demand, it we're a say my a Thanks. QX. in chip or seems get from is QX, up to to quarter. QX, I supply

Badri Kothandaraman

navigate a think be That's situation, mentioned good also is QX. we're to you dynamic demand. the how And ASIC what first what's should by mitigated to improvement FET us QX it that's but it's in I meet for it's to to dynamic. the would again, now, effectively to in you thing path reasonably QX. worldwide in situation what's on constraint suppliers. the have not right don't happen get we QX. I the from the can going we one it But meet the because to predict better. QX this situation in able is to in And now, knowing gets logistics what But driver supply know for I we QX. for giving we AC live then going a in five situation The Right significant qualifying much, situation. why Once solved, be happen know shortage. going foolish me -- should And supply QX predict get I than once better note QX. chain able what's should ASIC's, should our be should forward?

drivers enough is higher QX we Our drivers, FET the that's supply ASICs. AC of the because what FET have meaningfully for based. AC guidance and is And the

Philip Shen

Thanks Great. color. that for

Eric Branderiz

also, of supply, about seasonality. this, we'll typical think each add those quarter, are Remember kind other as you one there, To should the thing be model serve Phil., seasonal is more and its QX a, fence the demand we right? mutually the you things So

Philip Shen

Great. you Thank both.

we through that. guys the get you're looking products. quarter that on any might released be set around can products, the the color are to you with what As could it IQX, feature have what congratulations when to for interesting. and and is Perhaps thanks. perhaps four next-generation talk if be perhaps it's and And the IQX launching That you IQX, on just next-generation relates ramp. then six But timing what, the there a

Badri Kothandaraman

need run same power the It higher And quick if AC you AC you needs looking the capable That's basically, in higher-frequency. DC little innovation more IQX, level IQX lot transistors. call happen want talk factor. and the in The the start dissipate form innovation at higher needs when transistor at needs higher. about the relatively to much -- in the getting We run need there just that as to the ASIC. a output transistors The through smaller And tolerating a be innovation. thing. you you of higher to work needs all transistors bit in current in much a lesser tandem. happen -- and easy, Investor happen power a that's if needs factor these is We'll a happen I at well a at can which are It now transformer form of as to is needs on The to transistors, there. the the a to higher transformer innovation, three the is Day. because power innovation higher-frequency. what to Innovation

to that driving of capable frequency. that's ASIC an is second The

farm so from on more power IQX, can is to [Indiscernible]. higher smaller transformer The to them that many in can a advantage be gain of frequency. increased are that we going even [Indiscernible] third be three the worked with All deliver

line, Bottom So, I'll stop it's at innovation. that.

IQX enables faster it, the so ASIC away size. and than innovation, response but to got and IQX IQX. to events with storage hear the of significantly tying can we've we meantime, faster, That's You'll in any be get magnitude the orders grid is IQX. the --

IQX I've like as incremental said, we that's a be excited. to and And couldn't -- innovation in what IQX already more going of I it there So come is still lot said is and products.

was Enphase. that In version A, power we power highest the at highest of which That's we ASIC. IQX is had IQXH IQXH. in XXX the watts example, watts. have an version For we today. IQX, It's XXX made have

we power the great IQX a product. incremental tweak is products. we So, continuously But [Indiscernible] as

Philip Shen

do think think quick Is out? the Just or you do away you IQX, further a follow-up. it's it's two years

Badri Kothandaraman

mean, want about s microinverter talk we Day. talk a the more Analyst the Day. our and have little on bit forward to We'll it have particular Analyst in more going cadence we'll I a on to

Philip Shen

Great. Thank you.

Operator

Our open. Mcmahon next question Wolfe your comes line Research, is from Connor with

Connor Mc Mahon

On Hey afternoon. I competition, two guys, have questions good here.

peers your on month at of Day, one new obviously a Investor gave their micro so their first, or solution more So ago.

increases this Enphase any on competitive you to the Just so due couple curious ed of environment how of seeing Thanks. any you push share the broadly, how years. through losing next over thoughts -- of to compares next then or more are you've secondly. the And year? expect here, price offering the risk just far evolve

Badri Kothandaraman

Yeah.

the You're competitor introduced about microinverter. talking that a

In don't a of any competition of have years. over Company. competitor. we We all of Now, the seriously. a is seen neglect It's take desk them microinverters in the them. We formidable lot

have respect lot big of We for are sheet. them. but a We're do, can not sure balance a what to have we going focused They they're we do. on what

microinverter. made have We of eight generations

strong XXX We have very veterans. IP, plus

of gotten single-stage do has is Semiconductor reduced our lesser, dual of to based that a heat custom the high. we number on by components, And is is we quality of microinverters stage dissipation have dissipation standard lot Because reduced is that architecture. What our ASIC lesser. components All us are Enphase. custom heat versus our architecture Because lot Enphase architecture. number a the a use designed by we happens Because ASIC that these chip. single-stage enables a architecture do design

have That's semiconductor and architecture As comes always said, custom our about, are X.XX% kind of parts integration. due DPPM we that I high ASIC outstanding per microinverter. XXX to level is my and quality million target talking XXX. of for

we on It power me. is it done And icing So -- for battery. absence sunlight IQX -- can what add it in a backup the over of good is have can, do cake, the without time. grid that's a now to is

where me soon phase IQ-X and IQ-XX. XX:XX:XX], talk XX:XX:XX]. on I now, And a that's we bit going. asked you we're when [inaudible has did three-phase Right little [inaudible have So about IQ-X single next, got will

are High-quality That's So all customer we It's That's will all for we're about. us. Innovation innovation direction what experience. great drive will drive the high-quality. going. about

Connor Mc Mahon

Just second could -- the I ask If Great.

Badri Kothandaraman

Right?

Connor Mc Mahon

seeing the price through? due if you of Just put risk increases losing you're to any share

Badri Kothandaraman

seeing really a year customers and a $XX,XXX. if understand No, we're not is -- it risk now costs container It have is ocean rapidly. the $X,XXX an container component was last risen --

than constraint, to the And put them. cost, the XXX% component container more the on situation make we because overall inverters For tough. coming answer to in are sometimes of forced planes cost. us, Imagine

in in the plus this compared US. to U.S. year September compared X.X% last X.X% You're the seeing exactly inflation to is

distributors, both installers we times and okay, increase, sensitive we did to So, possible. sure we percentage incredibly heat decided it a increase. try to, way, make are as homeowners And price single-digit take when to we low-single-digits, We single-digit much pass are to comes installers. as when so price by the that we and incredibly are let's sensitive Actually, to pragmatic.

understand not price about one no -- think we likes will will but we our they customers and and So, increases, appreciate, it. worried I'm think

Connor Mc Mahon

you. Thank

Operator

comes with West James ISI. next question from Our Evercore

line is Your open.

James West

Good afternoon, Badri.

Badri Kothandaraman

Hi.

James West

like what guidance the lower problems logistics in that as so end typical we baseline know that I you your using or should and closer given was feel had here. we number inflation a to continues baked be know is that already you're you we as through continue going should will margin but do the of concerned XQ, Should we system. into be your this Quick guidance brought question guidance, freight, on all of the be comfortable. we up times, that you

Eric Branderiz

Yes. you is Well, This question. thank for Eric. the

that guys. come always of is as of to very we we front and we things it, stand guide of in Badri -- a whatever making cautious that I best can one the James, is knowledge today our I, behind are sure that So, you number we the

And a range. it so, is and the still range, remains range a

to we If quarter, on way on the you our at based record deliver past doing look range. we tend every that be track pretty well

James West

Right. Right.

Eric Branderiz

perhaps the example, to us those the based provided In of visibility And now, quarters you costs over of be on of just in availability technology the record way our opportunities spot have right? many need you that a right forecasting few give XX:XX:XX] terms track our the logistics, ahead our reality But feel described an additional us. you based that t, that the manage on parts, pricing bottoms-up process -- So, another we components that the in provide on unique on cases components, we and can ways had Badri our right? to of we the past and [inaudible many moving price. front,

And so, [inaudible them In the cost continue stay of on our we some of roadmaps disciplined them may they very with can be short-term, reduction XX:XX:XX]. us. some meantime,

So, we way within well conducting we past, we've challenges, the even the visibility in is that how ourselves have, the the that fairly pretty provided, hopefully under constraint to extreme quarter. we the been guidance manage And within supply within know that consistent.

analytics. I you answer question the a hope lot with in your front give that I something guys, put that best So, comfort with we that can when it's of you of and we

James West

then excited if technology Analyst -- maybe I'm it Yeah, curious it Badri the Thank you seeing really forward to rollout of Day. Eric, the helpful. faster than at up you. and that was technology. IQX, excited, out on the excited roll maybe could is very that the you're I And speed quarters, X-X look we're

Badri Kothandaraman

bit IQ did could did think are We it most X installers. that installers time that. This the did QX. were puts lot obvious hard, we with but little with It Lots we actually, We've is educating We complex. faster. a of it's people. always predict. to had transitions a of for requires product of be educating education, But the took we -- experiences We to rollouts. Transitions us it's and I distributors the takes. difficult are are with

for X. and put thrilled them is we be we that us X, take with would best of That's does And with little to thought, installers X homeowners. bit educated helped process been have their to need we why we X, forward foot the make so to Now that obviously I time. success sure a

James West

Right.

Badri Kothandaraman

future, would I reasonable but improvements in think more it's we number do for look can now. lot I right the

James West

it. Thanks, Got guys. Okay.

Badri Kothandaraman

you. Thank

Eric Branderiz

Thank you.

Operator

Capital with from question a Markets. we we have a Thank BMO you. And question Zecher have Amit from sorry, I'm J.B.

open. Your line is

Amit

Hi. for Thanks up. squeezing on were quarter. like And the looked me It your revenues congratulations guys. in, international

I bit give us if what specific wondering think color countries or little kind on regions a was of of about of just X% that. you'd driving are sequentially. kind I

Badri Kothandaraman

doing They're are Yeah, Netherlands, We're very it's Germany. to starting Europe in growing. actually Spain. in IQX countries We the Europe, is And ramp doing pretty the France, that into Belgium, simple. we well, well. retailing. just introduced

both see is Belgium, going us So effects soon. all Latin strong of really Rico. systems to We Rico introduced Germany about Enphase are Puerto that's storage. in those Europe. that for and we're to but start it's terms excited very especially very region America storage is going Puerto we ramping into a about,

but other in watching be in too you Rico be in market closely. should is it is Brazil to another a gigawatts you expect of on big talk the one continued We growth Brazil, solar. And early storage looking that X.X next also at, it's about Puerto few quarters. numbers, should

IQX we -- some which the a power about innovative IQXD, highest be a sell to excited products, like A, is huge we're Of Brazil; it's with products with a intelligent us. serious with dent intelligence the the course, it our to products with and able is product, cutthroat like market, a think on but way along I some working opportunity should make that for We'll lot, be financing. coupled with but

So international, for Europe now. color on that's the mainly

Amit

Great. Thank you, guys.

Badri Kothandaraman

you. Thank

Operator

Thank you.

with Our next Lowe question J.B. Citi. comes from

is line open. Your

J.B. Lowe

All margins are the guidance? products XQ on in doing? How kind of Hey, pricing was Question storage Karen. right. the Badri, what and Aric, on is everybody embedded

Badri Kothandaraman

Yeah.

year. shipping the storage the etc. mention I margin -- We the following. started have want We confident product to are a get I -- not our just And margins lot. yeah, broken line. by we question last storage about, on What's that individually out What but storage? Is

usually We – common knowledge We stages early changing. some and are is in the high an before earlier ramping. to It took relatively situation were is that our us Ramp, cost stage the cost is that ramp. it's of at time

as everything structure, as far concerned, chain, streamlining supply cost the are is We the manufacturing, the the product etc.

maximize you the focus take do watt-hours we Very that is things at metrics watt-hours two pack per basically, cell and And you are working share liter. on. will per kilowatt product decent. in if hours by comes maximize can But liter kilogram. things which And cell maximize Analyst metrics storage, are that, watt-hours one Day. costs, liter if best-in-class us, per down. also Those are building two obviously -- the electronics, per your you new power how power cost if hand with products, actually, often I the to on down you two the you -- pack comes on, to on And and cost focus the way -- because for electronics are We manufacturing that is the pretty take those

Eric Branderiz

pack to Cell need decent. on. you is that work already pretty

will on And baseline. enter our target are set of remember, do businesses So, help us target and we those our to until are that. the we more cannot we that enter we to And and electronics business thoughts storage. confident on but basically, won’t we're on not where That's achieve working furiously, Analyst we'll integration. on best-in-class unless will share any we will to those why cost we achieve meet they we working Day, best-in-class confident structure power are

J.B. Lowe

XX:XX:XX] [inaudible

Eric Branderiz

Yes, at a minimum.

J.B. Lowe

helpful. That's Okay.

you're Or rollout know the But on Another -- there's question customers. small-scale -[Indiscernible] mean, there expand to guys was to guys need of potentially a you really that new had are and I of to some commercial. IQXD how forge is set and business going are of new that process long are of as I do a I partnerships that talking the into partnerships? [Indiscernible] new what to just that lot going?

Eric Branderiz

Yeah.

I you residential. it now which a is and installers right give are segment, tail some call long this very churches. often to means the same it specifically is kilowatts. That think to we segment. are color, in neglected So, won't -- about we commercial niche And as motels, small the talking -- XX these a And kilowatts It's installers installers XXX segment. do who are hospitals,

Badri Kothandaraman

instance here. relatively talking about stations. gas We're small

micros, not one who can segment. to It's of we the win A know installers. that the And installers do have we Address software, installers maintenance. the by same. today IQXD a then segment, offering and With solution. Provide value, for installers. to then is a then us solar of quality lot Provide -- quality do experience were is serve about then That's so, going great add talk the over products. just win the in segment, Enphase our to And point. quality. permits, complete over that of high microinverter. operations they The the customer the pain it we're it and design ways game is that's fleet name -- you XXX-kilowatt XX have think our with try and design and to proposals, soft can that what management, not with to best-in-class solutions are highest

of again, the I begs Now will one of course, the question commercial things mean, commercial small controller share our the Day, thoughts storage. small other of we on also which Analyst the is

of all going It's we'll too. We're They of share installers. very thoughts dynamics there for to bit that. a great is little a one in service. high-quality it line. transited want So, and But a now, exactly similar just do

J.B. Lowe

Thanks. Okay. Great.

Operator

you. Thank

question a Credit Maheep Mandloi with from have We Suisse.

Your is line open.

Maheep Mandloi

chain that congrats [Indiscernible] for Badri quarter. talking a questions on Just a is shipping? the now? I sourcing better. of it. understand have I chain across follow right time, the to supply the supply same any been and challenges. you've specific any at pin up wanted to the Is your the there for challenge whole manufacturing chain demand Thanks issue just value of or about but lot there's strong from on Or

Badri Kothandaraman

supply if put, have Simply and largely into we the business you constraints. batteries, segment microinverters solved microinverters, the

are of issue, a but batteries, issues the microinverters, do batteries. batteries that which have will on have not bigger logistics air on nothing the to it's you specific logistics microinverters, because And a flexibility And we shipping that's huge. logistics honestly, you have we issues, the On Enphase.

Maheep Mandloi

on the Got just outside Asia know the talking these someone, about of or it. getting third were clarifications. chain. and challenges Thanks I resolve And someone some signing battery supplier battery the you for to won of the Philip supply

when hear [inaudible XX:XX:XX] that on more we on curious could Just of that?

Badri Kothandaraman

a we they pack now, quarter. of they set a XXX can them battery Originally, capacity China. together, give are cell two capacity Right of outs have Both the us -- in megawatt we will suppliers. have that

we them, a little if bit per to that more because increased probably our relationships, more of can capacity XXX than quarter megawatt has a XXX get We quarter. from Now, even hours want.

which event right, However, the which is doing a in chain it's in the that point raised China. you you supply disruption in is, is what global the diversification, are

So, lot for focus area it. any And we specifics prepared interesting I'll announce, about working but we we're opportunities the that's with when not something on we are yet, that us, and of working to have concrete on. have you. share a I'm I share to

Maheep Mandloi

right. answering my questions. All Thanks,

Operator

Credit Suisse from Our comes Tristan Securities. with next question Richardson

is line open. Your

Tristan Richardson

I all Very helpful. commentary Hey. on guys. evening, IQX. the appreciate Good

to X Just going X quarter to ramp. that back

hope you period. that noted You to of successful be that end the by

looks curious place success -- like. Is IQX of prevalent that what kind EIN, end success what Can the where you're product, can the curious you start of of at just at the frame new mass ramp Just you at or or with for it us? -- like looks that amongst for this becomes phase. long-tail critical a that that pursuing

Badri Kothandaraman

Yeah, Success about a here. one Like few will thought Enphase. the homeowners is areas. from happen hoping I'm I've that success, innovation about educating this new too. is

that's that's one so a success. And

hours. How that mean, as In kilowatt let's solar to I an don't have market. need, able I care, Because for -- us in to to I only able system a many me. kilowatts a kilowatts the choice? toted keep effective that should requirement the about to say storage minimal kilowatts get but I to How need say by one my second be system. backup with costs, are XX cost to I should system. say X X I to or The able enormous get let able flexibility for do are homeowner, I have light just X a on. of we X essential be X let's all storage system is constraints. able with I only the realize sizes enable if is about words, we other

times the going am power affordable five the So, times the at only, which storage, a you to There time, know it's in make of overall day. kinds happy. I'm system with I only. And what? extreme to have say, the I a I year. power the enable the I with like sunlight perfectly that it's more range some earlier in case use And If is okay. of lose And case, no right? batteries. cases population the lot for hopefully said what during maybe a going all be call, will backup two Right. backup people, only may year,

batteries So, me that With speculate, them correct is choice and is They respect, And more which -- a But lot every are me. the Phase come success choosing just [Indiscernible], with for installers to Small way start help become do Solar to is the is own sprouting batteries. things the all to of that's X at their home. common, I IQ batteries Systems all them. for going more. homeowners make the have can due that which nothing

Tristan Richardson

this pricing is it dynamic reflects differentiated the And on just does or the just versus remainder side, pricing completely it's unique product of back including then and the pricing on helpful. portfolio. going IQX the is out this product That's

Badri Kothandaraman

out lot Yes, the it than value. in a this I the that microinverter call, adds ramp so so of is but on not breaking IQX we're rising exact more value priced as Obviously that IQX. IQX IQX a no financials specifics IQX, QX we price the will was be of shipping But QX, into none IQX. to higher from now plan and there IQX in we -- QX, expected right so December, do to IQX compared it until in based shipments, start

Tristan Richardson

Thanks, it. Badri. Appreciate

Badri Kothandaraman

Thank you.

Operator

comes next Guggenheim question with Securities. Osha from Our Joseph

Your line open. is

Joseph Osha

Hello everybody. made I it. Wow,

Badri Kothandaraman

Hi.

Joseph Osha

It sounds IGBT's that technological. fair probably one of away financial, that is the and uses say? going first product XX:XX:XX] kind [inaudible to to that is one IQX be like wide band some steps you, for questions from to Two me you're saying

Badri Kothandaraman

GAN not have been we about secretive Yes, use will devices. it. likely IQX

Joseph Osha

All Okay. right.

Brian's enough. head So, said earlier. on the question Fair you have just to question its second And that. then stand

this kind even great environment. cost in margins input a You've of job of protecting done

input lower that take and margin or strategy they forward, when is about targets, prices share. arrive to do margin recoup Going to said what costs lower long-term given be to you've the maybe more take that use it and more going

philosophically. Just curious about how think that you

Eric Branderiz

definitely I mean, innovation and we always differentiation. think about

a growth. So, that we as that compromising guidance the use we the towards numbers not as are predicated and normally the framework baseline profile of part

bring quality in So improving necessarily in innovating, right. that's not And potentially the least are IQX continue We to a we even believe that delivering our those like are short-term. way we that the products groundbreaking seem think compromise at superior, as mean about.

the on transform I years long the in joined activity. model product itself what the very term, we our And pricing visibility available than think is Company energy will the you homeowner full are they gaining. with therefore, that discipline Company that you deserves. using The more understand to And strategies, new a based different X will ago. best introductions, a the experiences, Company As looking fair that acquisitions, more today on in into Company delighting continue market vendors continue negotiating almost innovation continue our customers, so reduction. cost Again, the volume they're over pricing discounts. the Providing

made I that's that it So, what us, today. think is it what

Joseph Osha

you. Okay. Thank

Operator

Thank you.

with Eric comes next Stine Our Craig-Hallum. question from

Your line is open.

Eric Stine

per it million on we everyone, but a little chain to X that you're just you end need willing capacity. issues. when higher number quarter you're bit discuss, the think know might that track of Hi think out know gets on term, beyond I again? as to supply the microinverters some touch don't take longer if to to get by the of quickly wanted I you

Badri Kothandaraman

a you X microinverters gave our on capacity, plan QX, and mean capacity. we supply shipped a million of already it's million I course microinverters contract Well, a manufacturing we X.X That manufacturers. of capacity is

However, those need plans. And components the come that's chain. stressed to the into supply enormously

for to Chennai until on we more our will lines with don't at alleviated, supply look factory once China And If want we factory at not be that our will we Each suppliers. to all game. up multiple capacity, qualify to will I when or of our the we But we indicated. same we Guad their we need there. issues should deal manufacturing get capacity. But need that in capacity any know we capacity is example. If of having factory, other gets look deal. If So, deal. And that need beyond that suppliers. put any alleviated. the we look only of same auto hundreds many issues at if And hand, that, India, them these, more

-- X printed beyond for to board, PCB couple up today, that a need we circuit today we're going example, million. we suppliers, to if may service a for X demand take higher suppliers. of For the have to extraordinarily

quarters can structural It requires some with of is quarters, there afraid do, like couple it. of express we It a So, of qualifications the on few it's we're of but what an be AC to to to we order notice something done to put suppliers, can auto X two doesn't line, we that -- a [Indiscernible], not XX or Take adding it. doing. couple did number changes have requires have the but in we a us. we'll daunt -- are used

Eric Stine

Okay. Thanks.

Operator

Thank remarks. you. the any A Kothandaraman questions. closing Badri - to back we And would all I turn to time like have for it that's for

Badri Kothandaraman

look Thank Investor and your XXth. for joining on for speaking support November you Thank our of you. you Enphase. to with continued us forward We during again Day today

Operator

This for concludes Thank today's conference call. participating. you

You may now disconnect.

Enphase Energy (ENPH) 27 Oct 212021 Q3 Earnings call transcript