Earnings call transcript Q4 2022

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Operator

Good afternoon and welcome to the Enphase Energy Fourth Quarter 2022 Financial Results Conference Call. [Operator Instructions] Please note today’s event is being recorded. I would now like to turn the conference over to Karen Sagot. Please go ahead.

Karen Sagot

Good afternoon and thank you for joining us on today’s conference call to discuss Enphase Energy’s fourth quarter 2022 results. Badri our President Raghu Chief Chief Officer. are Officer; Chief Belur, call Products Yang, Mandy Financial today’s Kothandaraman, and our Executive our On Officer; and

announcing today, December ended XXXX. a After fourth XX, Enphase market for its closed press the release the results quarter issued

differ and installers not and risks supply future and matters. conference this of introductions in of and our financial and customer materially to These demand, capabilities our technology anticipated but performance, and could and uncertainties manufacturing, management regulatory statements and the related new homeowners forward-looking new statements, from growth will the operations, existing results these and During significant timing markets, to, timing make to products actual the expectations. service benefits Enphase including, involve call, including limited and our our forward-looking expected statements the product events of

risks recent no with statements future changes please We undue result complete obligation a a uncertainties, to place undertake forward-looking see of reliance filed any update to information, XX-Qs or and as of and any in on most events the statements our expectations. the you new XX-K not and For discussion duty or caution more forward-looking SEC. Form

charges. that certain Also, unless on a otherwise this measures non-GAAP financial please exclude call note basis adjusted been noted on used are to expressed and have

our of earnings a in provided can on reconciliation section Investor found non-GAAP of measures which these with release X-K furnished our the financial GAAP the in be have also We and to Form measures financial website. Relations SEC

of Enphase Kothandaraman, President Badri Chief Energy. to Officer like Executive I’d introduce Now, Badri? and

Badri Kothandaraman

microinverters reported discuss XX% fourth quarter. of XXX-megawatt Mandy non-GAAP million. gross for quarter a quarter shipments hours batteries flow of our joining Good We Approximately a financial XX% into generated operating income, quarterly million, the X.X of fourth and all of go afternoon exited the our $XXX.X in We revenue as had IQX. million were margin, cash later approximately at basis. operating microinverter XXXX XX% a shipped will expenses and QX us XX% percentage We on free today financials $XXX.X and call. of results. you and revenue to good record thank our

discuss Let’s how are servicing customers. now we

QX worldwide XX% QX. to Our XX% compared net score promoter was in

American North XX% compared Our QX. promoter score net was to XX% in

X.X issues Our improved average customer to X.X to call our started in cause, of down teams time QX. root minutes minutes rate well, and focused business quite was our on We compared fixes processes.

Let’s talk manufacturing. about microinverter

issues in quite crop remains up overall that from are There environment Our supply time-to-time. general. stable

on top teams Our are staying of them.

Our quarterly million exiting microinverters capacity X was QX.

track quarterly total are to exiting this at to We capacity This us service starting enabling better. Flex million will on Europe QX. of quarter, Romania enable X manufacturing begin microinverters a

with even U.S. this more going are to increase We capacity manufacturing.

Let’s that now. cover

pleased we As and we U.S. through IRA the the that to back will the discussed quarter, stimulate economy of last jobs. help manufacturing creation bring are high-tech the

new exit microinverters, XX two million year capacity existing this capacity as begin adding of XXXX. a contract U.S. half our plan to are our XXXX partners. manufacturing customers the second quarterly lines X.X the of with more and a XXXX second than of microinverters the to by open manufacturing. to to quarter in contract manufacturing manufacturing X manufacturing of We the service plan We of We million excited quarterly local with our U.S. partner in end microinverters bringing better we with total

Treasury. of await details IRA the We of Department from continue U.S. to the implementation

the cover Let’s regions.

revenue, We for count for mix XX% quarter. had XX% the revenue international quarterly in installer and the In XX% and record sell-through record microinverters fourth XX% QX quarterly U.S. was record quarterly and and sequentially U.S., increased our our respectively. year-on-year. Our revenue

storage our at the healthy quarter, while channel a elevated. quite little microinverter inventory was Our of fourth channel was inventory end the

and I record than We Europe, the started more by record In sequentially year-on-year, our will in count installer grow details increased strong and led and We revenue go to batteries more XX% our call. Belgium, sell-through France, IQX our France XXX% Germany, the about in demand later business. we into into in in Portugal continue Spain, as QX. shipping QX microinverters and UK. had our Netherlands Netherlands,

European Belgium. We we Germany are currently introduce into IQ countries shipping to IQX hard batteries and working Also, are into other shortly.

in of to year. expect batteries France, this into the start We Spain half Austria, Netherlands shipping IQ and first

acquisition, Our to to which Enphase and helps from pumps, integrate homeowners GreenCom chargers with control app, Enphase EV and enabling their in devices the quarter which fourth Networks heat one third-party App. the microinverters closed batteries is

We to our with available to expect the it offering Enphase GreenCom the European and make are integrating shortly. installers ecosystem

will weak Latin a Latin to Australia color in in I Puerto of storage the In QX America, year-on-year. steady provide some the and year. recover business Now revenue continued our doubled XXXX. solar first In We on our market Australia, after during plus in America, Brazil. growth half solar Rico had

expect batteries with ‘XX. introduce along in We Australia, microinverters quarter the in to of second IQ IQX

we IQX The revenue market solar in residential as of deployment we Brazil continues family experienced growth increased significant grow microinverters. As for Brazil, to saw quarter-over-quarter of rapidly. our

high-wattage AC our and future a a introduce service We In them the Brazil, in in moving The India better, markets in we Spain are emerging Mexico, second team to have microinverter to watt the quarter. all order excited we in strong panels. growth place. very plan XXX high-power residential are And country. to about

Let’s QX. discuss outlook for our overall company

for revenue range within QX company of a be our $XXX to million. $XXX expect million to We the

We are fully booked now. for QX right

then regions, first on information Let about me provide some about Europe, key additional U.S. the the

we very doubled doubled XXXX XXXX and that strong business as to Note very – doing again more Europe our is also to noted. ‘XX than from ‘XX. revenue I is from Our

and strong a have are about quite We team XXXX. in place bullish

IQ introduce we expect countries year. through more batteries as into and We the in Europe IQX microinverters many progress to

great home experience. management Our is customer high value proposition energy our with quality combined differentiated systems, and

QX, with to consistent European compared growth the overall healthy the in expect we QX, for growth As market.

U.S. cover now Let’s the

QX to by in driven down business expect compared slightly We primarily QX, and to U.S. seasonality macroeconomic environment. the our be

X-month seeing We as orders. normally closely. spending are their a partners that have and in and our installer watch reduced cautious booking partners has more a order somewhat We that our visibility been distributor are little

On we a of while was microinverters, sell-through normal. us more seasonality our for saw January in than pronounced the strong December quite

There are with our point a holding couple that January, of interesting you. pronounced to sell-through and Even thought the in like observations I will are out with activations up. share seasonality we would I

note also to that when to December. to they conversations with compared and our in distributor point started in second January The originations pickup have partners, installers is see

us we QX. is cautiously Although these the limited, about have points data optimistic two make

about some We from prevailing shift PPA work to possible due also every a of to the seen analyst thousands loans quarter. have high with We installers reports interest rates.

both a our large installers and options at negligible. small matter not minor cash, diverse, to Our to installer our to base No PPA does that another change. homeowners. Any impact the shift only is financing loans Enphase of and offer business, type has approach from very what one are, almost conditions

the many tax and a tackling second, the manage the innovation, Enphase, with and storage credit, years best-in-class for customer focus intact, and a climate will the quality for which been long-term. experience. in independence change. utility few continue for the the factors: solar across are extended laser systems thesis we The ongoing and rising make U.S.; on IRA; XX% first, which home desire basic states ITC We At product remains energy with rates, XX has by to third, aided energy

We to switch shipped IQ Let’s of about battery. in hours batteries talking XXX-megawatt QX.

Germany North worldwide of We installers America, into have IQ batteries introduction now the certified and since approximately X,XXX Belgium.

to Our with am installers in median the America of made performance happy the in to QX software and We improve and I experienced time, of compared communication, commissioning team. time commissioning minutes North significant XXX exiting a grid changes quite transitions QX. XX

higher a our versus slightly result, in QX. batteries sell-through As QX we saw of

improved also We have number ship of We about performance to a installers the the feedbacks in to of plan QX. from XXX hours of commissioning. IQ batteries of terms got in XXX-megawatt fact

and power This also our compared and in North IQ X-kilowatt second to time third in commissioning install easier battery to got being hour ramping has and the existing modularity, addition generation battery We to expect to Australia the Xx in start America our battery XX-minute quarter. service.

higher rate NEM to tariff the as upcoming under X.X modularity the be hour charge the as uniquely well homeowners discharge California. beneficial expect in to X-kilowatt the We

changes as efficient we become to installations our microinverters. get as the better. as are significant making batteries, With IQ result, will storage that the we a confident installers And should are for profitability

second third generation We expect of well our year, as adoption due in battery battery well to our California. the to as NEM in perform both X.X business the half

the talk U.S. market for now commercial about small product in the Let’s solar our

year. We second IQXP it release half are to the the pilot and track on product production the in to of

single by XXX microinverter residential for rapidly, panel our are share same while increase power panel As design. product AC watts power to well the sticking watt from as watts to markets architecture. we the the emerging the as to increasing the This of XXX continues microinverter XXX XX%

Let’s as approximately QX manufacturing helping Mexico We in costs. branded Enphase EV and chargers contract charges chargers. to manufacturing discuss in at We this X,XXX chargers began compared shipped us facility reduce EV EV in capacity QX. X,XXX quarter, to our increase

in EV homeowners charger the operation solar chargers cases their will like storage EV Enphase the enabling visibility U.S. These control, charging the plus and in provide customers connectivity through introduce into and to allow app. the to second expect smart green quarter. We IQ system use of chargers plus

to technology charger EV vehicle-to-home, can own to functionality. Enphase green and This power. combining Enphase’s EV storage from controlled battery grid bidirectional charging empowering sell solar the homeowners charger, our vehicle demonstrated safe recently be their with new along and We and bidirectional app, use, make all

EV technology We bring regulators in to organization, are XXXX. to working market with standards and this manufacturers

update Let on EIN. me give you or Installer quick Enphase our Network, a

worldwide homeowners selective quality X,XXX experience installers the and highly through exceptional on installed across our onboarded more to now have to We EIN a process globe. focused than

other Solargraf Let’s document We quarter, battery software the consumption modeling several our the proposal discuss design by proposal, requested design and fourth updates to incorporating installer the and made improvements installer management, as partners. and platform. during several

the installers significant have with we software. We creation Solargraf strides using software. X,XXX Solargraf now plan automating addition, made In permit sets of in over

X.X to NEM CPUC X.X its on California. in NEM finalized Next, The QX. comment decision I’d on in has like

increase Enphase the be homeowners home That’s we adoption for more the help to homeowners will installers proposal X.X underlying in be homeowners companies energy the is generally under to storage. is X.X to to algorithm this advantage Solargraf’s the export had next The proposal stepped able bills for rates step possible. tariff engine comes little been and where wish and incentivizing actual educate the Solargraf While Solargraf design that making right operation minimize with need to the ROI. like down will Enphase Installers NEM the of gradually, in in direction their provide transition a The same is to maximize [indiscernible] is adopt used system. that to as by payback and optimizes NEM in. use used with a what of policy

solar, such the EV actual homeowners. As dynamic batteries, and product X.X, NEM with value and as the of chargers rate maximize increases Solargraf structures tight system will coupling to operation complexity

summary, performance. we our quite pleased with In are

our build reminder, installer strategy and platform. through energy them distributor the our by deliver a to installer enabled As is homeowners to home best-in-class partners, systems and

that We XXXX increase contribute the new in line. have many and to positively market served products top out our available coming that are will

emerging U.S. microinverters launching America look highest as generation small IQXP well our worldwide, power in more markets. XXX-watt forward and microinverter IQ in as introducing IQX the our into Europe, North Australia battery commercial introducing We countries batteries introducing for to and residential both third

We Solargraf as we to EV bring excited are the charging finally, upcoming capabilities functionality the doing the smart work are as both and the also to chargers X.X well functionality, bidirectional EV especially market. NEM about

a call for turn Mandy now With Mandy? will that, our the review I financials. to of

Mandy Yang

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

website. have non-GAAP reconciliations measures can section be to these found our which of GAAP posted of in provided We in our also earnings today, IR release financial the

gross microinverters of hours compared QX of Non-GAAP XX% was record. $XXX.X the gross for international GAAP a expenses XXX.X quarter. Total million, in increase of was increase $XX.X for service and for compared and approximately QX. mix. quarterly was an X,XXX.X Non-GAAP shipped increase $XX.X QX. QX. operating a million was by for product XX.X% driven customer was megawatts revenue We XX.X% and sequentially in DC to to QX megawatt The QX The driven by growth, R&D. batteries IQ representing IQX margin favorable were million for XX.X% margin

and and for compensation operating million asset acquisition-related were assets amortization expenses million included QX GAAP for compared impairment $X.X and $XXX.X expenses $XXX.X stock-based of restructuring operating charges. for expenses for $XX.X acquired to million $X.X QX. of million expenses million QX of and GAAP intangible

for from to million operations compared non-GAAP diluted a non-GAAP for earnings $XXX million basis, QX. was income compared for to income QX GAAP was to for On to non-GAAP was QX. per $XXX.X from million QX On resulted a million basis, of $XXX compared $XXX.X for million QX $XXX.X $X.XX a operations $X.XX income On for in for $XXX.X QX QX. for million net basis, compared This share QX.

the of for income of total was per and GAAP with to net cash, diluted end GAAP of GAAP for QX. to $XXX.X to compared exited compared share for cash compared million $X.XX $X.XX billion We QX million This QX in $X.XX at securities of net QX. for a $XXX.X $X.XX income earnings balance QX. resulted marketable QX billion equivalent

flow free $X.X million QX contract $XXX.X in flow. compared equipment. expenditure The QX. and and for of XXXX manufacturing expenditure million for Capital from due million. sites QX, additional cash operations to investment primarily $XX.X cash was generated In was year the $XX.X $XXX.X in R&D increase was full to we in million million for Capital

first for the of Now, our XXXX. quarter let’s discuss outlook

shipments expect XXXX of of range quarter includes batteries. first the our to within of We $XXX $XXX million, million hours be for XXX-megawatt the to IQ XXX of to revenue which

expect don’t for compensation in within restructuring our estimated GAAP range expenses, of assume FX the our setup acquisition-related operating GAAP guidance, million compensation impact we amortization. amortization. gross the range expenses for be XX% which stock-based in euro FX within We We charges our to $XXX million, rate million range $XXX and gross XX%, excludes the financials XX% within to significant fluctuations and approximately XX% from non-GAAP expenses rates. and $XX expenses be QX expect conservative and stock-based of margin site We be to acquisition-related a to of to consolidation, margin including to to

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

Moving to U.S. we significant cash research most and tax. net XXXX, tax in our loss Since of operating a we credit carry-forwards have taxpayer. utilized announced

expect GAAP impact. tax to XX% We for before minus and plus rate annualized any be XXXX or X% non-GAAP effective IRA at

In spending are non-GAAP share our of pleased from XX% to in with share while XXXX performance. revenue $X.XX XX% our to grew XXXX. We gross record free by financial million We non-GAAP we diluted increased double XX.X% more XXXX. per and in XXXX by $XXX.X per on closing, flow margin year-over-year, than earnings generated cash

With open that, I for will line the now questions.

Operator

come first ahead. [Operator Please Instructions] go Our question Oppenheimer. will from Colin Rusch of

Colin Rusch

Can trying your here. monetize flat? Thanks can so continue bit? where that’s how you increase here. strategy much, you guys. the here your how to different the to value the I talk here. evolving devices, into try about about you a you you it for move to Are what there Just Are little configurations – appreciate price and hold as us talk to evolving all pricing detail is areas

Badri Kothandaraman

installers more to and not want they is we now look on compared look to with product ease back lot pricing. the to versus to We competition. add experience usually stable. And next customer pricing microinverters to once site do the our competition install, typically, at is And what best things matters they a compared right and in alternative. We we we pricing compared value the compared how in competition use they install for our general that The our to are alternative. come quality that very How that to value-based at Yes. easier do again. the focus do – is of to is

So they excellent support. need

puts best We all alternative. products. our it at if So versus look we these next and and takes, price the look at of we

have extremely terms bit strategy, provide. of going the We third our flavors first according And power, our and we disciplined. those short with also generation, to the generation features. two in that we with I to in think products a batteries, means similar little fell it we unique. look we price quite first be generation, a we at There the now different segmentation are which In differentiating are of has been strategy and batteries, value the second-generation

We will X-kilowatt have have hour and hours, X.XX the generation, which power. compared will continuous power then the to kilowatts have power which time, battery we commissioning of X-kilowatt a addition, modularity X.XX to on minutes the thing power, kilowatts going right XX double prior of of peak we have is that And generations. in amazing that’s two first the didn’t get means

space, again, we those back we into will price So value the products are with accordingly. and batteries,

So stable your question, quite pricing the short is answer now. to

Colin Rusch

can bit into in you commercial channel education then as at the market, to and what you preparation of seeing in the push making latter you’re the the you a year? sell-through little products by in full the the look product, swing of talk the on prepare Okay. with or Excellent. rooftop of as And a terms about get into legacy of bigger training really terms already some middle part

Badri Kothandaraman

with us performance. and is had years important, we to right, proposal we it that on had that design covered AC. the microinverter to Solargraf. the that a idea. product, And XXX-watt microinverter by good only product, entire was get right, to needed introducing took IQXD the light on most we excited inject microinverter then we the not some It because the it the time had which We’ve get performance, we And gateway that. a product. we work it. at software This chain originally performance, proper X got was started panels. And two Right. ago, worked And that And time

terms we in watts. power yes, that that we us going because to, So in XXX release come product can we can than few bit fall product, product it that panel the power business to then has moved that, the is out, say, of ago commercial but months time. quite a of let’s And a short took realized with greater

over two X.X. X.X of a this X.XX. more business. will X.X than panels and XXX ratio is X,XXX DCA watts. The So, be is acceptable right number in between is X,XXX not

change, a we are we did the what the we leveraging we on we told going make the IQXD. panel, installers quick going then increasing single to power, the regrouped, architecture, micro So to are single back

care watts not basically And – and that up So that product We architecture is to increased AC was will XXX we lost. a XXX-watt product. we a power. are now take introducing used it of panel that

and entire need that by – the platform. also product, So we accompanied

about What win from platform, a installer design this starting residential which qualification I is the is in like generation It’s There because talk the business. lead is time. not cycle some business.

You properly. have opportunities to capture

ROI, through spend a need process. the the excellent installers lot analyzing understanding of then be to help that. need And You the the time in tools you for entire

take the so are entire that flow. – think to the to looking in beat we almost because release said, design we planning to this It’s installers start in we what few it’s is are And finally it I quarter third I business. like with And Then like a quarters a ready the quarter. win to ramping residential business. the release going using ramp test not second us are to the introduce our

support customer the basic have is with will extended piece is experience. work there and we great period which same. quality and we the them convince of But customers of time so winning. for value our start to innovation well, and Product then is And an proposition, customers

Colin Rusch

much, so Thanks guys. Great.

Badri Kothandaraman

you. Thank

Operator

ahead. question Philip ROTH Capital next Please Shen go comes The Partners. from of

Philip Shen

get out more a in have Congrats in little that and talked customers your you has my on you I more is in some on spending to conversations their reduced being strong we’re thing how they You fair there trade of a visibility, watch just questions. that a improving there. like pulled QX order X-month noted was But your some when us and as some are you for Can of back originations booking QX. are back partners that Badri, talked January. some challenges and caution understand one about bankruptcies prepared a there the out or remarks your and Thanks everyone. little help expand challenge industry, it on Hi, bit based your taking been you do X-month closely. somewhat Normally, amount experiencing bit to orders. and about the credit cautious visibility? tumult and having in seems the with expect of that

you expect through just is Thanks. to share to gain do strength. the one year the how beyond you overall we develop. the source But So to perhaps expect look that understand, of how QX, as navigate year wanted rest and of do

Badri Kothandaraman

seasonality in that down is industry means, look, the existed to historically, say sell-through a would mean, sell-through in usually compared And number. XX% seasonality That solar QX. is always I I the from Yes. QX has that, to XX% in general, the in QX QX.

now, that’s Now of data the giving lot I’m have. right and we from and a you data January,

didn’t And including QX I January, same. the start macroeconomic we down were think of That’s Our little environment, they the experience seasonality. more the to was remain mean to a strong, than we but course, was due activations saw they more a much said very a XX%. approximately that why bit of seasonality. little December. interestingly is what I have we pronounced it and

think basically are they XXXX, we Therefore, much said the focused were difference cautious. on So a that I distributors, on They their only at in was having they get buying which customer their need was warehouse. they were installers because mean, is stark from what that, the somewhat supply. whatever least affected. what quite did maximizing are not saw good But I that they – basically focused demand had where from

required. their about that about OpEx, worried spending, sure cash their what going Now they Therefore, do they are worried flow. exactly is they are they are are to they about is make their worried

– little crystal X used conservative. now I don’t cannot not I we I why X, That’s have more and be book ahead. much some so customers to book ahead, why think a that’s months ball. a seeing be will who will sure. think So I are They

this work originations, or not, And is whether thousands We on more data. of regarding with – question they the are that installers. improving the your

very sample of a talked lot strong set. We to have distributors. a We

of distributors our service installers. tail Some of hundreds long

think We I we we and So is back – see to we strong don’t to anecdotal originations are that’s you link originations of in not seeing why activation especially ourselves. January. much are being that that me a is fact cautiously That’s I what And said that reported optimistic originations – that QX hear QX. hear. in only in But plus California we – points what information. I the to that versus

Philip Shen

Okay. call, to Great. Thanks, wondering you gears historical, if on on I the were terms last comment you microinverter get think you IRA the see the than the the suggest Badri. our that? was Shifting you of majority originally checks to credit. maybe talking of ability in I a could released majority about the XXX that Section PTC latest later or later. of expect some could credits? this then And the year of get of the manufacturing expected terms the vast be Do guidelines, of timing much to in

required the all? that curious if great. at your and impacts would Thanks. factories, for about plans be CapEx if you Just facilities And talk can that

Badri Kothandaraman

Yes.

auto I’ll million per the line. in $XX required, CapEx etcetera, line to anywhere units is line and cost an XXX,XXX reverse. including answer from $X So roughly basically, question million is tax, auto

So to $XX $XX six if $XX do million. lines, anywhere to we have to close – that’s million million

spending. CapEx the that’s So

our no, plans, expect Yes, we does your the not. to to it does indication vast change majority. announcement the And we then question, do. do of the get Now treasury answer

are start in quarter. up we of to second we to going with the in new the going the a couple then lines quarter. remaining And contract And start to are ramp are lines. We going manufacturing manufacturer a second

by partners. with manufacturing So contract XXXX end totally, we will six of lines have the three manufacturing

Philip Shen

on. for Badri. much it I pass Great. Thanks very will color,

Badri Kothandaraman

Thank you.

Operator

Lee Sachs. Please Goldman The ahead. go Brian next question comes of from

Brian Lee

guys. the Hey, on the questions. Kudos Thanks Good for taking afternoon. solid execution.

I question X.X. had was just First NEM around

and is think what that different we’re implications near from I term uncertainty of hearing. medium term policy there

wanted industry respect get is kind views that California navigate out that? the to how medium out seeing to in what near-term, forward maybe with And to there maybe still So some term, you’re be this. maybe curious hearing would pull just we’re figure on there demand to then trying the a in of thoughts is your

in focusing are specifically you U.S. of the be half? see how case? California thinking XXXX product base states, case period that’s the in driving Are you Just curious higher you down then that, of do significantly? curious if be how more you So in half the how in into about And thinking kind yourself policy to second back of And that about had follow-up. uncertainty I Europe? more you’d then to planning the other just a navigating

Badri Kothandaraman

we yet. are about haven’t I something Yes. we so California, installers that’s talks demand in I all any They aren’t But said, soon maybe right talked strongly. really forward X.X, now. pull big originations seeing are few quite optimistic. On NEM why QX. in an with up And small, both forward the and like see what optimistic But will pull far, we seen any

talking NEM rates were import previously, about I export us. it, of about X.X going for talk same. incredibly Basically, mean, just the on so X.X, positive features X.X to general. – Because I’ll and is be X.X, NEM NEM everybody Now in the the X.X. the NEM gets NEM

electrons you really when therefore, solar with didn’t matter. system So the exported

your as what NEM it when As and metering, With export subtracted got directly these long called X.X, input. you why That’s exported, net net from that electrons. matters metering it you it’s was X.X.

a XXX XX So days you hours day, a year. have

the out hour, – So to and batteries you batteries, data payback be X there works payback X the X.X. in hour, And time, or rate. to system. interested comes an right that solar X-year NEM stock it moment with export you XX-kilowatt in what is of in pure back difference With with your something to hours, X there increases system, hour, the That X-kilowatt those basically, to is add batteries, X.X of that add years is XX-kilowatt can an of X steps a period. primarily were moment But X-year complex. didn’t each points, to resilience the because for NEM NEM attractive. for X.X, financially it X.X if be dropped you With it X,XXX complex. Batteries battery. solar NEM are export those data going understandably was from, is But Each points. X.X, like definitely to the but let’s are years, the pure have is batteries grid you batteries an actually rate ROI to only. add say, is that

installers draft plus we a to it other to pick able where we is in, And homeowners. engine where an are the The So show storage. need solar for that’s if solar always think to come homeowner, the like will this it the engines demystify homeowner and no-brainer.

to one self-consumption doesn’t that No attach going much. add it, for it some have as batteries an there. – not This there reduced at They so In the the if XX% in direction, what same grid-tied is a going It one this but Now look And those tariff where thinks about call for year. to out norm becomes is have you out because rate, in X,XXX exactly a rate. therefore, in which once have hours, different feed-in goes Germany, that is example, more same is Germany. maybe solar, the power exporting much right? rates they go happened. direction. variance And you a Germany, Germany,

not I as you am grid resilience have – sure means color. direction, markets that tell We is batteries in sure do too. will But tied do we will issues will We direction. well. in installation and because that tied I’m battery. have California evolve little cheaper. a it some simpler, is the have Time whether Grid go

ready do will for line, Grid the that optimistic. either we grid, will with X.X. NEM We popular, bottom tied popular. are right or become backup. The start modularity, which batteries looking, be the but things incredibly got off with we We grid I third-generation So battery. grid to tied think on like may it got becoming we the are

Of like we decision. the didn’t step it’s course, long-term, I the the happened away. right down fact think an okay But in

Raghu Belur

decision valuable Badri it’s one addition, a in – near comment the load, on engine right. also third One NEM battery, more – real X managing our we I whether it will generation the be for to battery, of hour charging the battery battery to environment. make time, every is that the uniquely etcetera. is optimization the said. discharging engine in But what this Obviously, more make is the has will in The running,

mentioned energy that becomes What script, actually have critical. the same mentioned system. begins all operate design as engine, in with the itself. Badri run management and to the system order design extremely actually that extremely in this, that you of it design valuable is engine we to that the run It engine his engine engine All the you

is time optimizing operation. engine together spending valuable. and critical. bringing building the so extremely as and And And And extremely well that lot battery pieces are that’s starts what that software and two as those our – of is becoming critical the with design up it we a extremely it the

Brian Lee

I appreciate Yes. No, Maybe the color. quick follow-ups. two

as a guess trying to the is I So, thesis still shorter is change the I get, to immediate long-term it you on out. medium-term the Badri, figure basis, mentioned, industry and

I you breaking some you customers up-sell And kind market the as ready numbers, earlier which hearing are So, new QX to or convert are figures to are macro starting the to until started your friction will since if then for pretty going half, at battery the batteries – be meaningful that your you Are they guys the for out guidance early rules look time first I year-on-year what customers, we installers? have guess secondly, of the out. and out. settles shipment second down volumes uncertainty, guess here I alluded as from even in you of just to

all thinking this of growing the quarters be you. back sudden next a sort So, the at least batteries or period should few they the of does for again, growth drive more about Like half? the look into until, NEM we X.X battery of are of quarters couple like market next What out. again, a for is don’t figures in uncertain of growth kind it

Badri Kothandaraman

going We think NEM that for should great think you be is us. to X.X

– going going NEM to are growing along We be to with be with we X.X, growing. are

– outside California am too, right we on the the battery growing addition, sure I on what whether are to the working because In color not said, cut you going we I have be transition now. are

all of getting the is second-generation fixed for quite our the part to are for terms generation. in The ready the have now, in the performance and most of issues and transition And to the third-generation the is right commissioning way all we give product third in field software all of going battery. we of – is stable

modularity. you time, battery XX-minute third-generation and the on to appointed power, commissioning benefits The the

So, we this California. for think that catalyst starting NEM think X.X in we the second half of the year, be huge will in a

also expect we to healthy see addition, very outside growth California. In

a talked time, course, very a are X California incredible they than about increasing bunch to more ITC, the worried credit of years most what on upfront. are ready, sale to many the installers think with having to think. of be years. the them optimistic time. installers, and But their installers We recently between customers talk we attach because out quite first a exactly XX% will good all are little and the the the they number payback think of shell payback a will batteries, with this, bit whether I be easier question, for battery X the of more other an with about and payback tax And you Your

are we our and about battery bullish quite X.X especially context. that in So, NEM third-generation

Brian Lee

Alright. I guys. luck pass That’s will of on. Best it great.

Operator

comes The go ahead. Mark Please question of from Strouse JPMorgan. next

Mark Strouse

taking for Great. Thanks very our questions. much

lot a focus comments about to U.S. back markets, I the wanted go on your Europe. but So, just to of

should kind here? in of think just from expecting of the I that’s doubling that think base case that kind be an So, don’t strong kind Do but last should guide approximate we year. been very you we obviously about of the of annually, each years, market doubling of in XXXX? couple know kind how you is

Badri Kothandaraman

reports really available Netherlands, guide becoming etcetera. are internal is we significant and to about – are talk European in Germany, Well, of markets do least The served gigawatts said, about At quite really Spain, markets. not France, as actually annually, markets even something Italy, you XXXX. market solar They are XX Poland, Austria, growing. our market that all but the driving

XX%. also batteries Like what on answering attach is rate attach growing. the stated I have in – battery In is question, addition, Germany in – the the attach prior question prior

So, is position do situation – our solar the what year, geopolitical accelerated last is. healthily. what’s plus that’s And growing continuing and storage it

have a We differentiated very product.

on high to easy quality, roof, very which microinverters are have the install. We

take operation batteries, care as We we of just and have are countries, customers France And starting ramp. well a two Germany, we we Germany as have huge in to in well. there service Belgium. introduced On customer in and our batteries

to that introduce more We quarter. many this year, every will countries expect happen and

be into I to mention, to Germany country we – we battery IQX so Europe every expect there. every lot more in forgot will IQX, And a mean revenue in And introducing country add I shortly.

EV So homeowners system, on to bought everything job therefore, Networks. is Enphase top solar storage heat – this to can the third-party pumps GreenCom operate optimize app, we of network then their see – can and chargers system Their and it, and third-party company is called can that happening. from and one

going company, question, Networks home answer better what growing the to we I installers. management where gigawatts, that The XX and to is value well really bought proposition, That’s significantly. a our to market even So, is a energy your growing. that are we differentiating to complete is due you GreenCom our told situation market system we provide positioned make recently

Mark Strouse

just little then mean, bit But tax And to maybe, doing I the a math about credit, of any from far from there the the higher way I that on color downside I U.S. can you be break. average, all can upside manufacturing give as share thinking of here? a the the manufacturing are ask, blended from that Mandy, tax of yet kind is mean as the credits. input we kind the Badri potential domestic costs appropriate Okay. you

Badri Kothandaraman

range do we expect of refine puts wide and it some and and between a go. will takes, as Yes. a net-net, benefit you am we we right I a have $XX I mean giving $XX net we unit. now because

Mark Strouse

very Thank much. Okay. you

Operator

comes question Research. next ahead. The Please Steve of Wolfe Fleishman from go

Steve Fleishman

Thank you. Yes.

quarter are you million. growing a million your doubling from it production you Just are $X capacity, $XX to

I the end of there you production. us conviction year be You a that to meet could that sense give think said, will doubling your of of by XXXX, just demand

Badri Kothandaraman

time, end you we quarter. End And doing, I ‘XX, if from think at that X-ish Yes. can rates, I think, were quarter. of to we our we – units ‘XX, remember a look see – I it, XX%. ‘XX, grew right, Look, now just reported at around million we we grew past if growth of units are million you ‘XX a we grew, X-ish

the you growth. So, can nice see that that’s

in with countries the strong like benefits. We is long-term call manufacturing, U.S. thesis solar with IRA are invest especially our extremely So in markets. our emerging entry a to Europe think with the other on – and is We it into – rapid we bullish. right the the position right basically – especially given

well us. use it later. we all So, if units don’t the use quarter, per worth benefit net And we especially even considering ROI I will million sooner to think or XX the is

of So, what two a lifting, today, us our manufacturers. we few who We They heavy lot the in invest limited. and them out quite like thought strong the lot all do it need to a and heavy lines contract We right thing contract they quite do a these the are lifting, of are weren’t that set doing is our have capital we of existing and partners did very manufacturing We to for worried. logic great was simple. fortunately, back-of-the-envelope is calculations.

So, we the with have to deep in going them are relationships. And work we long-term.

thought accelerated that’s we it In right we taken up quarters. basically a past, six And the So, for effort. quarters that us do, takes likes. once decision, decision us us to to four a and make to we quarters has it ramp few the the

So, we on and right quite our is call. thesis that’s solar, the bullish think

Steve Fleishman

margin you expect volume that of on cost? just gross but then that. No, that’s ultimately, mentioned, have benefit a net significant I is $XX had well, from growth margin so – to mean then the And margins, $XX mentioned, you you held gross obviously, the up Okay. that

Badri Kothandaraman

unit, $X.XX a IRA – AC $X.XX watt. net the incentive, is an per the That’s which gives you

Now, by make XXX every AC watts. make, watts microinverter we XXX we multiplied AC that $X.XX, microinverter the let’s right. that say,

number that is roughly So, $XX. about

$XX is net the that So, benefit.

healthy as – us are sure our some to incremental delta, make partners contract takes takes well. manufacture some that in want versus It call Now, it manufacturing the cost also Mexico, us manufacturing as in we to U.S. right.

therefore, adder, I what incremental incentive. we net that partners, to of benefit $XX cost pass they all and That’s the we as to reported a would $XX per the our the share on contract minus unit. bit benefit Therefore, what minus us $XX to number So, today. benefit that little have for is be net that manufacturing incremental

Steve Fleishman

I you. Great. there. leave will Thank it

Operator

Jeff The Osborne of comes go Please from ahead. next question & Cowen Co.

Jeff Osborne

Hi. I ones. have Good two quick afternoon Badri.

you of wondering if You you down a touched in visibility and have I QX terms was can but on QX. on specifically lot there Europe, the drill

Badri Kothandaraman

they something Yes. us have these Europe partners, do is for our actually that good bit. A them We headquarters have visit the a supply. And opposite. installer them also starting even Partners, strong orders. to to of routinely, few we on distributor quite our come quite that’s do rely We partners, visibility. are see. we

So, I have do think there. we visibility decent

Jeff Osborne

QX. But Certainly, or Great the margin then for yourself is story, way And know is how that the to then for I the sort QX if helping. think if a end of there there the quarter? do sure led terms to the to about next of margin IQX battery the gross walk Mandy, in of equipment hear. is a either the strength of gross to and ancillary get didn’t quarter? complete high that’s between issue doing we if a wasn’t softer sales range or walk mix cycle in And

Badri Kothandaraman

IQX the if we is are out IQX. we mostly that mix million X.X – XX% That The means shipped about QX. of XX% It’s IQX microinverters Yes. mix. in worldwide,

the So, And that’s in…? was, number, the to how margin. principally gross Mandy that XX% contributing much

Mandy Yang

XX% QX. It was in

Badri Kothandaraman

a little QX. that XX% number the than in XX% That Yes. model. QX, be that explains we to in number, expect greater

Jeff Osborne

that. A I follow-up. appreciate quick very

in the dilutive to you that reported? IQX is grows just that or As results accretive Europe,

Badri Kothandaraman

be accreted. will That

Jeff Osborne

That’s have. all Thank I Got you. it.

Operator

Capital The Markets. BMO next Thakkar Ameet of Please ahead. go question comes from

Ameet Thakkar

squeezing in. Good me afternoon Badri. Thanks for

have guess I of quarter, XX% in a line what’s think XX% a quarter. in Just of on guys of baked to you get you running But said kind little mix the end first by to terms second that? is follow-up Are targeted questioning. I that just IQX last the I bit guys on behind of you for think the

Badri Kothandaraman

would several near-term. behind, in little a I introduce say. in running – are going rather IQX into to Europe countries I or am I going We the we are to would –

will than in in maybe think So, we should that catch at I QX, we XX%. a QX, And XX%. lower to be little up probably probably

Ameet Thakkar

if when But I then said year time think of And roughly proposal. the ‘XX terms I up had ended total and will that. you this guys for I a battery of on of X.X uptake NEM revenues initial of last was might a total like was call, change of where could kind wondering increase, just in revenues. XX% of you California post things. kind give kind this Thanks as think in California that certainly refresh us we Great. and that percent California a

Badri Kothandaraman

are correct. numbers Those the right. That’s our revenue. of total Yes. California, is XX% approximately revenue

Ameet Thakkar

‘XX? still it’s XX% in And

Badri Kothandaraman

Yes. That’s right.

Ameet Thakkar

Great. Thank you.

Operator

America. Julien from comes Bank Please of ahead. Dumoulin-Smith of question go next The

Julien Dumoulin-Smith

it. Thank Thanks appreciate to time, the you. you. for afternoon Good Hi.

I And pricing, a bit through stand utilization, you about come question know obviously, structural of follow-up. of as the margin How you bit and about think little this between the to expectations margins the I integrity, if you value think we do about nuance a expectations. little then earlier, off, especially bit On mix? you little fully here elaborate here. for talked I here are pricing from a more course the margin of vis-à-vis talked and mix little maybe bit storage about can utilized course earlier. the evolution today. of question other a also You first products Can the year, of back pricing a where is there Just about you year? talk your wanted to on margin

Is underutilization you on You capacity. about bring any the impact that of on as bringing backlog there comments about this, the think some from margin dynamic? given

Badri Kothandaraman

Right.

driver, a in margins our margin our will we guide. lot margin focus of It cables, what working we more we the have connectors, porting, capacitor, on told the of focus as Like is have IQX, initiative of costs. the on On pricing. AC will whether transformers. margin about gate it’s it’s about plastics, I question, the the continuously better, the world-class And we you, convert resistor, large mix where have an a company we in not small, care to the the whether it fed, take and always is a incrementally called team get on a every

working large And reduction a team good We you efforts. cost of have what see plus on combination efforts, is it. a good pricing

IQX every of costs. you the we that on before improved the quarter are noticed, until we gross the will generation, we making X% told we transition our are our costs. will we in our we model. can have company plus meet prior progress a generation, I operating are So, by the improve world-class business will guidance if margin, – model, had be convinced batteries, margin not from we And non-GAAP gross the we And that in second because

we batteries, working on on are So, it. continuously

to Our third-generation battery the battery will have second-generation on fourth-generation We will be intensity even already battery. than significantly, a reduce better plan energy the so that be better.

continuous your program. And second… So, it’s a

Raghu Belur

Utilization.

Badri Kothandaraman

Okay. Utilization, utilization Those impact. negligible contracts that are with partners. our is first order to have the we

Julien Dumoulin-Smith

it obviously, Got to and volumes if stuff. your press the your that on the into just loan evolution, markets here then deviate ability just lease customer. you if way Great Alright. And about just versus you enabling think helping just it. what’s can quickly versus and loan comment lease

Badri Kothandaraman

we have And number those, some those have of leasing. a We some healthy share. of XXX% a who installers of do With with share mix. with offer business we

well very are we overall, So positioned.

beat. think significant a lease. between I loan will have shift we We miss and don’t a

Julien Dumoulin-Smith

Thank Great confidence. it. Got you.

Operator

comes Stine question go from next Eric of ahead. Craig-Hallum. The Please

Eric Stine

here. for in everyone. sneaking Hi, Thanks me

is U.S. to that, So well, times. better the back that and this the customer? manufacturing on, But to any servicing with to I the as coming point, I Obviously, from it’s about have there coming being been lead just with benefit any benefit closer Mexico to servicing the contract maybe Asia mean, just on Romania margin global and from curious, customer am you

Badri Kothandaraman

depends raw is a materials the you it upon about because where if think come wash Net-net, it, it from.

in you order, not benefit. get material that example, So to have Europe, manufacturing, if you first for all will move unless factories raw you to Europe, a the

at cost chain customers. then full function the of your the materials, you transport raw where to is ship as the to have look how you product you So your basically, product it a then and make total you the

we to of raw case in to to factory. closer So the are get but materials yes, you need the customers, the do Romania,

definitely, a it able we and So become to if are – to to is closer It’s large some to about, up what is some we enough be is exactly talk the I said, we I are enough to do which there wash. are convince would say manufacturing it the factories wash. of a taken not significant our area, if of some move able will if out. It to significant us, to cost is factories suppliers open but

Eric Stine

that, the of is starting come people happen. to indications and Any thing? credits that that U.S. the sort into mean, tax I

Badri Kothandaraman

Yes.

example, But in Mexico, have we and is bigger, will we As happen. to for Right it now, you it’s one a fine that see tell It eventually event. started an I day. that. get bigger those will process. can’t happen

Some of our suppliers for for have started setup. factories they example, for have enclosure, to setup connectors, or

some it is realizing there, are We but evolution. gain an

Eric Stine

Okay, thank you.

Badri Kothandaraman

you. Thank

Operator

question comes next ahead. Please go The of from Suisse. Mandloi Credit Maheep

Unidentified Analyst

if insight Maheep Benjamin Hey, is thanks mix you on in QX? Mandloi. Europe the could in. wondering the me a David was give line for I This squeezing for little for us into

Badri Kothandaraman

and basically U.S. mix you Europe. international revenue XX% most our of that international and between XX% told is revenue We is the and

Unidentified Analyst

that’s in – as do the QX for line you well? think to be going same QX And Okay. is for that’s

Badri Kothandaraman

about be strong QX for but usually in the because Europe will don’t talk slightly I little We compared to mix QX, that better think it is a U.S.

Unidentified Analyst

think new Great. you talk retrofit opportunity little generation, do batteries, a or follow-up, going what what to can about look And with you the on just Thanks. – if you the think is think a bit like? third you

Raghu Belur

is Raghu. This

And before recall solar, has later I now battery think we that’s be retrofit very XX% benefit the IRA unique we and a from for you coupled battery which in can on general, because at system have be can that are Enphase, into for XX% better do to AC you you ITC, than come us ITC. standalone – can ITC, storage going still battery we and that. because is if add easily means the your and get decoupled in

add if you can of So it older modularity add, in you existing it’s it X generation solar time. many AC can have if hour add can system an system, how you an an come can and you grow kilowatt in you system, to hours, you coupled add And even it battery. want over

the All possible our and get of ITC those to are system XX% things access credit. with

a definitely benefit retrofit. So for

Unidentified Analyst

Great. Thanks very much.

Operator

comes Kashy of from Harrison next Piper Sandler. The question

Kashy Harrison

Good afternoon and questions. you thank for the taking

you if quarters? of you mentioned remarks, prepared some – the recovery some are distributors your just of in starting your Badri, now what in year-on-year bit and to wondering distributors in seen on maybe how that of I prior that they maybe was are see in distributors to what growth share So could compares a those details terms January. had seeing

Badri Kothandaraman

No, are data. not those our

distributor about that two our in there we then a somewhat basically is share – which more and watch their been installers. which the have the is cautious spending. order partners the So those. visibility we X-month Normally, said has and sell All they orders. distributors things, booking that seeing are fact that sell-through, cannot little said, also as I are what I And we I now – the is talked to reduced installer

the while more quite December, month January. in was in of bit little we normal sell-through strong seasonality than saw Our a

where of originations the seen about On basically points a from the which in January data the have originations, to few compared them anecdotal pickup talked I that installers December.

also our have proposal design Solargraf We and engine.

company our deals with installer SolarLeadFactory, to bought selling partners. we which also leads another have called also We

January to when are also better is We compared seeing trends that similar December. very

So although have data limited. we the is

mentioned cautiously I point this QX. – optimistic us the so that makes And for

Kashy Harrison

that Thanks that’s In me, you’re you. credits only the willingness Can capture the enough. clarification all microinverter to as to follow-up words, for to able the speak other gain to on In you question. that’s’ the this a market there. manufacturing player major And And your using the to credit. my to event use Fair for gain customer share? just just benefits thank and share? the that passing those tool is

Badri Kothandaraman

us think must to normally we for we disciplined. to it only quite alternative. Yes. value long-term. the compared like win and value are the The I add That’s add don’t product mean next We way that. must think best

operations So factories having a right lot that. have one reliability in There of an and benefit incremental running do a a work There of is in the to there. lot R&D. and for is work we these qualifying we is this to lot do have of

etcetera. the outlay, Of course, I capital about talked

investing So all we But of those we those be are are in are of to now. all going extremely right disciplined.

We pricing. in are as to this lose to opportunity that an discipline going not use

Kashy Harrison

you. Thank

Operator

Next Wells question Satish Please comes of Fargo. ahead. from go Praneeth

Praneeth Satish

market, typical in in distributed look in California? across I states concentrated more unpack Or think country? the you the Thanks. When you XX% evenly that’s January. slowdown more the seasonal at just U.S. like whether Can is maybe mentioned you it than more

Badri Kothandaraman

of I complexity California, weather January. to is to weeks due mean, in there due an the first added the in the few

say yes, would only I difference there. the So that’s

going across we equivalent the I to find are states. normalized, weather once So is the is it think,

Praneeth Satish

I think on to I you working all this mean, you’re gears, on the but much when the think opportunities that think to road? do could you value ask down road? switching about product down pricing, small the it’s just how opens you how the now, I there’ll then charger then And ascribe given much do I think it bidirectional you And for be it. up. and Got demand wanted Okay. what charger there. bidirectional guess

Raghu Belur

part bidirectional management etcetera. management, EV about Energy Raghu. It’s we shouldn’t chargers, core a grid stand-alone management solar, system batteries, This or will itself. our EV something To begin stationary a obviously, is charger bidirectional energy with, Yes. of system. include, by think

full federating these how all energy between resources into the that So solution that’s offer. it the as solution should that of that within And energy we as flow is software full the set, of well management part piece, house.

the that’s way we So it. think about

is home. resiliency benefit As far now buy principle when you that you – the as you ability resiliency EV, to directionally store the services – in basis, It’s the as really this EV as an on simple would gain a if be buy that see we stored most battery, leverage the of on providing is to first order act IQX to grid, which added It’s charger. system it our energy car the should well a we those means the it battery to grid, on resiliency the the both vehicle comes that And about virtual of because does for should vehicle-to-home out resiliently to that provide. vehicle it in grid provides as the back, have roof modular said, about, cases your our as in it provides car both plant. to power vehicle-to-home like provide as also talked think use things can that like

EV So by I buys and energy lot part think be would of include solar, who buy the you charger. would the value system, and bring anybody system to I of Enphase which motivated it bidirectional Energy in expect the naturally really, to that EV being would battery our a the

Praneeth Satish

you. Thank Great.

Operator

ahead. KeyBanc. question Karp Please go Sophie comes next The of from

Sophie Karp

Hi, for if maybe have last question. I just one, been may. my answered, thank of A questions lot taking one you my

just capacity your forward U.S. the existing is the you of some that you’re outside manufacturing Thank So strong outside risk presumably, growth current will market serve international basically by capacity and the in U.S. additions is the here? the capacity important your will these going the capacity that that doubling cannibalize expecting you. Or lines U.S. be So international U.S., be U.S. served any your of the demand? right? there that in of so

Badri Kothandaraman

Yes. I mean, once again, we are before. I this – actually clarified

very are disciplined. We

We with will same not – the are contract manufacturers. we working

see we So – them in we business on shortchange with basically elsewhere. going can the their locations totality the to not are

to right done orchestrated the it carefully we and plans. has have be So

to quite Europe, business example, strong for U.S. it for quarters usually. ramping such well up lines. in ramp takes as as And six Fortunately, Europe, us, our is us healthy, four anyway, to

all a So of allocation we what make that do. we to factories loaded. what That’s the will do will sure is careful correctly process are

Sophie Karp

Thank you.

Operator

of Blanchard question Corinne next Please go from Deutsche comes Bank. The ahead.

Corinne Blanchard

to question. I you range XQ of guidance my embedded to give the but you you then more And bit, Thank if can softness have taking million $XXX back even from know into a How Hey. March? the for incorporated little guidance? and you. Thank go and the what February $XXX XQ and in million. commented wanted just color on much you the on in I California maybe expect to

Badri Kothandaraman

that able please you Can it to not we one, hear were repeat properly.

Corinne Blanchard

color view just and into guidance on guidance the California your softness terms get of February much of incorporated the XQ have more for to and market March? Sure. the wanted for in I you how then

Badri Kothandaraman

number. growing Yes. told I Europe, quite well. you mean to we XXX clearly XXX gave it’s We you

down U.S. will you And be grow We slightly QX QX. expect also to the in healthily told compared that to we as QX. it compared to business

we you. color gave the that’s So,

As crystal mean improve. have but for I February you, March, don’t are starting like what the seems I originations and ball, told to a it I like

optimistic things will better. are we So, get

Corinne Blanchard

Alright. Thank you. it for That’s me.

Badri Kothandaraman

you. Thank

Operator

of The go comes James. from Please Pavel Raymond next Molchanov question ahead.

Pavel Molchanov

for about Thanks quick the question. Two ones Europe.

in credits Now other net receiving for envision that is Romania? manufacturing the talking or Union industrial you any about do this zero operations subsidies your European plan,

Raghu Belur

I we plant No, in any have Romania. for not about that subsidies – or mean our any receiving heard additional about

happens, there active tracking going and being done the pretty benefits closely. there that us. for on are if discussion to However, That about is And here. IRA some analogous in are we something Europe that’s

other of anything are obviously of will But that, We it. else. hearing avail we not than

Pavel Molchanov

And Okay. on exposure quick Can than international get main a your we Europe, think Australia. I then other that? is update

Badri Kothandaraman

microinverters quarter half thing basically are had a our into battery the there. third-generation weak addition, Yes. the our introduce in are Australia fourth second IQX Australia basically is is to And to quarter. levels. exciting to planning we introduce Australia we first just about ‘XX. back of also And recovering original in The for

a have So, those in installers excited once installers a Australian going with Australian – meet And Australian many they quarter some third-generation about are many to product. products. table. installers And the are we brand-new round of

be So, it. for we release us once will incremental an that revenue

Pavel Molchanov

on the that. Appreciate update Thanks, guys.

Badri Kothandaraman

you. Thank

Operator

go comes Please from of ahead. Milligan question next Janney. Sean The

Sean Milligan

my us what us help new ramp the you that battery understand And expect that taking of for pace over year? introducing going now? should for Thanks the are in markets. you storage then in guys. Can new I this what sales know number internationally questions. you how of understand percentage a markets, of afternoon, up or Could we help right are Good address

Badri Kothandaraman

that introduced batteries breakout will this now last since Yes. QX started. XXXX. U.S. and the Europe U.S., batteries say We normally Europe. of getting I do for not But between is we have

X.X The but started, years basically, are guys rapidly there. they Europe expanding. getting are So

Spain. introduced countries, XXXX. and four Netherlands, introduce that well, are Austria, in is countries, two which going in basically, more as one there have Belgium We Germany product in we I think countries the Immediately, we lot the introduce a and plan to France to are and fifth Switzerland and

steadily at going becomes look when between breaking hours we we there. will whether future actually see the megawatt Mandy for are start that it we ramp up me to And So quarters. out it will and and

Sean Milligan

great. Okay, Thanks.

Operator

This closing to session. the concludes like for over remarks. our would question-and-answer back turn conference I any Badri Kothandaraman to

Badri Kothandaraman

Alright. continued us Thank you with forward for support Enphase. of your you Bye. look quarter. for next speaking to and joining today again We

Operator

may disconnect. you today’s now you for and attending concluded. The conference presentation has now Thank

Enphase Energy (ENPH) 7 Feb 232022 Q4 Earnings call transcript