ENPH - Earnings call transcript Q1 2024

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Operator

Good day, and welcome to the Enphase Energy First Quarter 2024 Financial Results Conference Call. [Operator Instructions] Please also note today's event is being recorded. I would now like to turn the conference over to Zach Freedman. Please go ahead.

Zachary Freedman

Good afternoon, and thank you for joining us on today's conference call to discuss Enphase Energy's First Quarter 2024 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, March ended XXXX. a After first XX, Enphase market for its closed press the release the results quarter issued

including not future our conference this financial trends; to manufacturing, existing capabilities regulatory of service new new homeowners but performance; and and and management statements anticipated products benefits related forward-looking statements, markets; of will market During operations, to, demand; our make the supply customer to installers; timing technology tax matters. and and Enphase and including, call, limited growth our and expected product the in introductions; the

and of the our actual statements forward-looking These results events these expectations. differ uncertainties timing materially from involve significant and could and risks

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

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

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

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

Badrinarayanan Kothandaraman

We megawatt of generated $XXX.X because our million shipped quarter of channel slightly XXXX by and $XXX in microinverters today us quarterly approximately million. demand. QX, Good first X.X inventory free than reduced of financial our revenue for million afternoon, softer less reported and joining you flow $XX.X and anticipated hours discuss thank results. approximately batteries cash million, We of to XX.X

operating Mandy IRA gross in a income, as expenses our and the quarter, later into all revenue margin, go XX% delivered first XX% a benefit. we percentage will the call. For including XX% on basis, the financials of operating non-GAAP

how servicing discuss now we Let's customers. are

was compared XX% in XX% in NPS worldwide Our to QX. QX

Our average minute to call compared QX. in X in minutes was QX time wait X.X

our fixing We automatically data through identify problems proactively enhancing are analytics scientists, to adding them and software.

Our engineers enabling installations, teams, continuous installers are and bringing learning technicians field to assisting while development and improvement. back our complex

Let's cover operations.

approximately per XXX,XXX expect ramped, production from U.S. XXX fully capacity approximately shipped quarter, contract facilities Once a tax microinverters in We manufacturing to which in we QX that X be of microinverters qualified X.XX credits. million U.S. capacity of million have our global for the will

our We million microinverters manufacturing expect customers from to QX. approximately X.X in U.S. to ship facilities

resuming like, The the inventory. a would in higher anticipate number little top half second our our less a we but than We shipments reduce factory to is is the of level of priority what year.

For X IQ in support Batteries, pack our which in suppliers, to cell manufacturing China, sufficient XXXX. ramp we capacity both have have

during of expect we third XXXX. battery to capability discussed, the U.S. previously the in As quarter manufacturing add

now Let's regions. the cover

respectively. international revenue QX for Our was XX%, and U.S. and mix XX%

our and In in demand. customer into XX% to we by overall sell-through metrics U.S. our regional QX dollar of the The are breakdowns business, region. QX. sell-through undershipped end in down XX% compared visibility more decreased providing our For we as revenue was the microinverters sequentially U.S., and batteries to

split states California. market in the U.S. and trends non-California are the by discuss we Let's seeing

in color transition. to and XX%, QX overall our on I'll batteries QX NEM The compared for due our due the in down sell-through by states, and seasonality. both microinverters statistics was X our compared microinverters QX. in and sell-through -- non-California to of overall sell-through sell-through batteries For was down The was California, down X.X In similarly XX% in was down QX QX. and XX% the was to seasonality XX% XX% call. our down X.X down NEM of sell-through provide later to more

microinverters our provide batteries of color particularly and was Europe, The was X%, revenue while X% markets to In sell-through XX% sell-through key our of on and up microinverters in improved XX% sell-through products. Netherlands, QX. France overall new the increased compared batteries up Germany. and our in of QX sequentially inventory QX. we introduced as The up was Europe, I'll our some in channel

The QX. QX, the demand our we during future. the the are for and QX encouraged government's we Netherlands, X% decision compared was overall to signals see In down sell-through market NEM in support seeing foreseeable the to by stabilized after

a see up microinverters to sell-through decision. this expect We result pick of as the of in QX

to continue tariffs become and to prevalent. grid as the going plus dynamic solar more become We norm believe services batteries are

In France, in compared sell-through QX our was to QX. XX% overall up

We encouraged this by strength in have utility continued rates. supported by been higher the market,

battery and market Solar for significant for see Enphase. evolve small, to penetration in and we potential still France a into is the grow plus solar country

XX% sell-through up to our was compared overall Germany, QX In in QX.

year, strength from We are our country going software. in in X-phase to later market. We additional with the to plan along this solution this battery launch strength

home We expand services and AI grid management ML are and participation. leveraging to energy enhance our software

shipping continuing are Batteries in the across IQ quarter. Batteries Notably, countries launch and IQX Europe. We many we to IQ our first into into Microinverters new started Italy

In ramp, throughout powered introduced we are XP, by Battery in XXXX. June in year. Systems we sell-through Australia, battery, countries Enphase and is anticipate new Energy to which beginning Microinverters and last steady our a IQX the IQ third-generation growth Our

during higher this Australia expect the attachment of in We second half year. rates battery

In we panels. microinverters same high-power our we installer microinverters, support started good QX. powered Mexico making Brazil, to IQXP, just Philippines shipping in progress India, and Thailand the shipping We in our into building highest are base. In are and

microinverter at watts reminder, applications. XXX commercial a both for a high-power IQXP and As is residential AC

market about the over and in market and data. we Let year, on see the internal for me both and PPAs. towards the microinverters last say a our batteries from lease There a U.S., away several stable and few words share. loans a our including been share In based have third-party changes shift

market our continued is testament strong value provide relationships installer a and towards differentiated our the products. share them proposition we Our with

pain enhancing the focused product portfolio, deepening our strategy on Europe, fully relationships. We In points are our same share. solving installer market are to using grow we and

Let road, weeks, really provide been on color In have leads. by more year's how becoming down are last They their at and selling visited what doesn't. over X from by last XX% are articulate and leaner. understand high-quality clearly we works are to Many X.X. the they NEM much getting They are all what They on X.X. installers I've hungry have California businesses or adjusted to the some NEM doing. better high their can X me XX businesses reported that for in

install. available to adept to They're February. also the date. They they stronger becoming selling which either to grid-type don't PPAs, this battery January year at offer are the the March homeowners. to becoming backup becoming financing a a increasingly to If switch over of in loans flexible work, batteries, options with or or the every Most them reported and compared are leases aren't they long sales in battery of

to should bottom, that out we feeling at we the and away came beginning to shortly. growth back are get climb I

call. statistics, have XX% an compared In Let's rate systems, XX%. NEM systems our a These high that NEM rate haven't which from which very have cover NEM changed to X.X X.X were X.X over last attach installs our QX, systems. California battery of some XX% of much attach

half shows also of data batteries. systems NEM using Our our Enphase X.X that are

increasing is data California to this account, revenue this contribute Taking our system X.X will revenue system. our average NEM believe per and average stabilizing into our X.X the approximately NEM half. in second X.Xx We

to our come Let's QX guidance.

$XXX of to in We $XXX range are guiding revenue million. million the

We IQ XXX- ship Batteries. expect to hours XXX-megawatt to of

We seasonal $XXX strength states, in expect million in offset in $XXX due some in to our of approximately sell-through be Europe products and demand up QX by decline QX, from California. million to non-California

million for plan We the market in demand end by undership products QX. to our $XX to approximately

the We QX on expect of normalize forecasted. previously to by we microinverters as the channel end

Our batteries almost channel normal is already. on

Let's talk starting with IQ about products, Battery.

has industry-leading best times XX-year and calls received. battery the well power warranty. Enphase till delivers any third-generation date been It Our Battery battery XP an as specs very commissioning of IQ

the are well and sales to our rates we positioned globally, adoption Battery in XXXX. rise on are grow

expect are we There rapidly; margins the last down are are microinverter to pack our U.S.; the down due in coming due which and costs, which on architecture battery. throughout costs from discussed coming to improve battery we continuously costs, cell our quarter, fourth-generation factors: coming year. gross manufacturing to down benefit batteries X As on IRA improved

factor two next early We're and already third benefits year. of benefit seeing from the the the will we first factors,

more We countries battery. third-generation on Asia entering are in our with and working Europe

introduce with X-phase expect new this We during our also year. Germany for backup to battery

cost that of of to We expect initiatives system improve balance for improvement for will batteries backup. installing the several the U.S. launch

due architecture. year. the structure in battery plan an great pilot the to and our will form elegant later battery fourth-generation have We battery and management factor a power conversion cost to integrated This

And by our balcony have social markets discussed, we market Europe increase to and available housing we solutions our As entered throughout introducing during plan microinverters. countries year. new with microinverters plan IQX family countries more to in the we now and to We XXXX solar XX in Asia previously enter further countries. and served European are of with many new the

simplify on small launched light units. to social the systems Combiner of IQ housing recently installation solar Netherlands We in the

to new small well X-phase commercial installs variant in of is with from adoption. other XX are early launched America good The solar for we XXX kilowatts. December, seeing and We Microinverter the in ranging the product this North IQXP cabling suited system

starting and IQXP We are our excited U.S. facilities further quarter, about the forward manufacturing costs. Microinverters reducing to look product at this

charging. U.S. TV EV QX. smart Let's We IQ Canada our the charges in cover launched in and

charger, introduce bidirectional on smart a we like also of We Enphase System. European VXG will this VXH as and part bidirectional to is team This countries, unlock have year. charge chargers GaN-based will and for TV them are The developing cases the EV working expect inverter. use which

expect product XXXX. in release We to the

integrate our system software. we did costly energy PCS dynamically of build PCS, cover recently latest installers utility to software panel main systems power North in national We the code upgrades and and a controls where the the America. flexibility our by produced while launched release electric design systems upgrades System, larger can avoid a Enphase Power meeting giving lot management Let's Enphase requirements. or and that Control, press with to

for forecasting Our manage is optimization. markets increased the software and and energy AI ML complexity by to the leveraging in evolving

next where new payback and Our in the can throughout manage change will Europe, This period tariffs maximize help dynamic software countries Netherlands the and homeowners for to hour. like prices is solar offering intended electricity software reduce ROI Germany. by

Microinverters me an gallium you or Let also on call update GaN. nitride provide with IQX with we

Multiple confident increasingly in and are We providing the expect with us at we of deliver power parts, design. have vendors been costs. reliability microinverters higher to lower IQX our GaN

two markets: the the the is We address XXX as launch small both X-phase XXX markets, watts. product residential is expect XXXX to commercial and one the the first half the of as in to watts well other

improvements some commercial now projects. Let's discuss and and and QX, platform. designed small XD installer design support capability, of announced advanced key our support California in verification including X.X for to Solargraf with NEM and We shading smart enhancements features

to Germany expect and Solargraf is U.S., the currently countries available more release to in installers the and to Austria, Brazil, coming we quarters. it in Canada,

me Let conclude.

demand. We the QX. in XXXX. and stabilize to has believe back demand and back of slowdown we expect less have been becoming California expect wildcard, recover, quarter. increase of a non-California managing and we in half Europe bottom was begun in the through QX already to the a is of to period states bounce We

the are We going are utility and is NEM The long are sales X.X the for in attractive teams steeply batteries. term. rapidly. bullish up rates The plus about solar learning payback

downturn pleased market the that have well the am executed over year. through we last I

flow this cash channel. the while correcting We have free maintained throughout and period profitability

there expansion We portfolio a are lot development sacrificed a or more come. and entering growth new product is cycle a have good growing not and a any now to with geographic plans still and product

begin in We expect Microinverters IQX field batteries our to the and later year. testing microinverters, fourth-generation

We the operating and on of to remain system Mandy? gross costs expenses review our like in to call out returns product results. U.S. and dynamic PCS are over operational our easier the upgrades financial roll as to tariffs reducing enable a healthy We to and strong installation. turn of margin With for laser We and count, concentrating and focused company making growth. that, improvements Mandy will excellence, installer software sell-through maintaining on battery both plan significant balance Europe. faster and I

Mandy Yang

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

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

lower QX Batteries Total approximately megawatt in hours QX compared IQ shipped GAAP XX.X margin net and for in $XXX.X decrease QX. margin was Non-GAAP XX.X% revenue QX, IRA DC IRA XX.X% was million. volume. gross mainly the gross of benefit quarter. benefit. without Non-GAAP driven was The was megawatts net microinverters XX.X% We driven in lower for XX.X% QX QX. XXX.X by of to to for was by primarily gross for XX% margin compared

Given and intangible GAAP restructuring and million impairment Non-GAAP of IRA operating expenses result expenses plan in $XX.X December stock-based million to compared GAAP were $XX.X decrease asset benefit. of operating non-GAAP million of expenses, million implemented net for $XX.X assets for was XXXX. QX. million acquired $XXX.X million for gross margin for compensation $XXX.X compared million $X.X included we QX. $X.X for $XX.X expenses were included for QX million restructuring of QX the The QX to of for charges. the operating QX amortization

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

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

our Directors share we authorized a stock of average in approximately $X at As part million in common Board repurchased by share program July for XXX,XXX price of of total XXXX, QX. repurchase of our of our per an billion shares $XX $XXX.XX

and In addition, approximately $XX taxes to diluted by for million in That XXX,XXX spent cover QX. options vesting shares. stock we reporting by shares reduced the shares employees

million $XX.X to Despite $XX.X a In due this to to operations flow. free challenges, our We U.S. plan. cash QX Capital expected reduction we QX, flow and million in Capital from expenditure we flow. was continue for million macroeconomic free generate million for cash anti-dilution the continue in to compared manufacturing $XX.X spending. in generated decreased cash $X.X expenditure QX. requirements

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

which our a expect $XXX of We revenue for within QX million, XXX- $XXX of range to be to hours to shipments Batteries. of includes XXX-megawatt million IQ

gross within to of range a expect We GAAP to XX% be margin XX%.

stock-based Non-GAAP be and to non-GAAP excludes XX% with gross and XX% XX% a expect to gross margin of margin net benefit XX% range We to amortization. net IRA benefit. IRA compensation before acquisition-related expense within

million in on IRA net U.S. between and We of of $XX units XXX,XXX expect microinverters the benefit to estimated million QX. $XX be shipments

shipments microinverter microinverter in half of shipments X/X this the second U.S. year. increase of the to main expect to overall We our

to asset GAAP range and be We including compensation restructuring million approximately million, expenses impairment within $XXX acquisition-related to estimated stock-based expense, the operating of for million amortization charges. $XXX expect $XX our and

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

We for expect plus IRA benefit. XXXX, discrete and annualized to minus our XX%, or items at tax be GAAP rate, effective with X% non-GAAP excluding

questions. the for With I will open that, line

Operator

comes with from question first Oppenheimer. today's And Instructions] [Operator Colin Rusch

Colin Rusch

of entering about energy little start of how storage, newer a considered you those volume you're can guiding to some with support build XQ, customers? the As much selling be these could talk inventory of into to markets bit you

Badrinarayanan Kothandaraman

that that question, Yes, I didn't could repeat Colin, properly. follow you please

Colin Rusch

Sure.

how channel to start at the new much prepared looking is energy dynamic that sales you markets of just into and storage channel selling storage So selling actually guide, and energy the into XQ as get

Badrinarayanan Kothandaraman

Not much are new for really markets us. ramping because just the

QX. For example, we introduced storage in into Italy

that's we really, Prior European we introduced to introduced that, Prior into a if see, market. that, the countries. So only you one few the U.K. we in new to a into introduced where

the healthy. our In is fact, channel is very -- storage

we We we That's storage. on on what actually normalized as I are are storage. speak there said,

Sell-through I didn't while the better in It's sell-through seasonality our seeing of XX% worldwide was hours, than are fact, in I'll on sell-through batteries we QX products. other down. give overall was call. the that about talk batteries QX of XXX-megawatt in XXX-megawatt hours, only much data a you that In X% -- the of the

batteries so XX-megawatt of took That means despite And are the sell-through, the only XX.X-megawatt ship out discipline hours we channel. the doing in Yet general. to hour. XXX-megawatt well hours we had

channel The lean are storage. XX-megawatt we XX- to quite When guidance. I guided is I the That's increasing hours. QX, why for for guided see you

for hours QX, guiding XXX-megawatt to storage. guiding I'm I'm Now XXX- on

is a story. storage good So

to it expect continue. We

over expect, Germany to there. we on soon. the of talked we'll about. solar to is we plus Netherlands, color about. every long about France, talked We already market transition get markets. talked the We term, our storage. some California, there

is storage general, for us. in So good a story

Colin Rusch

the And pricing little you pricing quarter-over-quarter looks around dynamic, the maybe here? bit year was middle flush average. down we through pricing can and as on like then inventory a of you the into and get the get what you X% about the on X-ish, talk Can as microinverter it discounts expect dynamic

Badrinarayanan Kothandaraman

we variance at something mixed something pricing you measure variance ASP we did is The customer much quarter-to-quarter. it. measure means And a your how simply drop variance customer function particular variance. customer called a And ASP of Right. and called how

overall have in particular it will pricing an his For reduction a and customer a up, went example, for up show you if ASP. as lower volume

a you effectiveness pricing answer are ASP of Are very we is at disciplined customer? the the customer Really, in dropping And measure from there. variance. pricing particular comes

but mix, don't we We pricing? to -- move don't you are of comes talked about seeing when do to we to do -- like you inventory, is you play it order No. games result need that. lower what So are in disciplined a extremely

So issue. disciplined, on you're will we what is sell mix seeing be we purely disciplined, product And are we value. a

Operator

And Sachs. from today our Brian at Lee comes Goldman next question

Brian Lee

can or you QX destocked a a at softer. you in was the little onset that -- undership have little talk than bit said expected a because than Badri, little the of about demand you bit would just bit demand call -- less you less

of that in inventory in million for guide. $XX your destock, clear kind the should XQ micros of So the

you're normalized, saying You're XXX. seeing

last XX? So demand is about when like you X are destock million running to out strip know normalized XXX you that the you at $XX XXX. I were inferring Because of talking call,

of us as demand frame your out of through then you normalized maybe seeing to process high of you just kind the maybe run back kind time well? you think all level what what walk rates to like level through thought there, once reset? So get And this inventory what you're those looks get normalized

Badrinarayanan Kothandaraman

Got it.

the So million math, was $XXX in QX, under of shipment. million end demand, which revenue demand, we is QX, $XXX minus is million our in $XXX Therefore, million. and sell-through million $XXX.X customer $XXX can reported do you of Brian,

in $XXX estimated And when $XXX million. I QX, guided customer I now of $XXX Midpoint Now is of my QX, $XXX said sell-through demand million. guidance reflective is which million. to in million is

the shipment. other between is million minus difference million $XXX of minus So under the the million two, $XX $XXX or $XXX million million, $XXX way, the

year. the talking That's be that the Now $XXX could of what we second where in markets. about are million the half

for improve. for expect government future. We metering foreseeable to Europe, approved Netherlands example, the net continuously has

which That in in big sell-through the resulting see to deal. in activations should to higher is starting generation increased are Netherlands. increased a Netherlands, much We lead start and

Next France. the us. rates are utility France, one helping is

So this expect environment, you strong. be we can despite France to see,

And it, and electricity to our solar QX of Germany. higher reported On I batteries of or and one the of again, expect and product high, We solar QX. storage cost sell-through is about in introductions. once is continuously talked Third grow. top from there, XX% we

our we In have IQX everywhere. nice and batteries last year, up by the introducing set

cetera, I'm introduced going Sweden, in are to to introduced We we not Then batteries that. everything. prior U.K. list Even now in introduced countries. QX, Italy. into in XX we Denmark, to Prior we the et that,

both in as U.S. new now we And So back the Asia are as come markets let's to well attacking Europe.

and states non-California mean California the -- the dynamics are U.S., I California. yes states -- and In --

the So there weeks, to prior improving. to let's better numbers we we the us weeks, non-California are to for saw tell data seeing points are are sell-through states, that. X that multiple things compared first data last few That's In say, you point. last what

have contracts, therefore, March. by can being The used we second installers, over we internal which sales is and going X,XXX now continuously one proposals, those our numbers look software, plus in at Solargraf are we can see up is

The numbers up February, versus March. numbers April in are up versus March are in

like So last The month good interactions X sign. the them course, weeks, in of My than last Then, California anecdotal. that's sales in much customers is said with all universally of well February. one general, is, it is March better a can for see versus see the analytics the third-party in reports permits -- And are about you do of that as month permitting. in non-California California March talk February. the you up as

way, few By well trends for last that in the the the as I California are told both valid you weeks. as non-California

the sell-through up. So $XXX for I guidance why QX to And $XXX continuously bottom expect said expect we -- we million are go these we we up why our million. raising we to that QX. is is with growth from And $XXX trends, That's going That's the sell-through are million to said million $XXX are to cautiously optimistic quarter. that's turning. things why

before. And was are that the to going now -- rates. about, be two talk one, maybe instead interest to three last or I interest the We four hear point likely cuts planned two which rates of there wanted

a so that the meaning is is anytime could those there So that going the all even further, into to come expand states cut further, non-California demand play.

Brian Lee

Understood.

not barring and it where reason it's you if is the guess or looking basically that's and just, helpful. would exiting any mix shipping we $XXX super XQ think there kind is pricing I dissects meaningful Is like million. today, changes changes -- about the you think in you're trying clean staying level XQ? at demand again, any be you that have of if demand No, to normalized outlook channel Okay. here,

million willing shifts kind to is structural I'm times puts higher million to million. million and the $XXX now, than take nature? it that versus, was -- of the are I there but at $XXX what right I think million, things again, takes to -- $XXX earlier or in for what would guess a just the lead be any stay and that there of is it $XXX how that channel understand view trying is to that $XXX mean I year

So what that higher? then lower it moves what the moves were go opposite if direction? potentially into And that to

Badrinarayanan Kothandaraman

is sell-out meaning I think is what said be and you should once normalized, sell-in the correct, channel balanced.

So that's right.

So for to example, our to we do we QX because sell-through higher. don't But were expect any the $XXX it any under inventory similar million need is to the say taken all out, around, sell-through longer. shipment remain do we be say, sell-in in remains let's now if have level, you would

new financing starting being So at vectors California time. non-California for we on things the products learning improve than commercial all of improving, what which in said, in to But states that like in QX, our U.S. before the balanced options X.X, sell-out are us are general more I small the of several that and are to products. to Europe, introducing, ramp available are installers NEM I do sell-through sell-in to the in installers highlighted, and there which all

sell-through become So and of QX makes that higher start that would optimistic all beyond. me in to

Operator

with Harrison Piper comes question next Kashy from our Sandler. And

Kashy Harrison

what approaches And to I'm where you at and the you that how? you've came point, if the of then to into I wondering So improvement, $XXX million. adjusted second faulty how sell-through are Badri, of million QX the was that, sell-through indicated to Essentially, quarter trying was forecasting spirit land you your in and have And in could continuous is about forecasting And just confidence input expected to one, $XXX last point where a trying to will just at in your to methodology sell-through, can to expectations errors quarter? for approach or specific get the that $XXX Street quarter? second first those I'm walk through get us improving? for million heading you the

Badrinarayanan Kothandaraman

Right. worse. sell-through In the can or bit not based little and in as XX% most the And numbers you We batteries. right about, lower, general, perfect. I a XX% on think, was reported, were the XX% we seasonality. on are California on that And were forecast We places. microinverters I California see about XX% in

So I increasing getting in we with I And which think the California in everything think which mention I are discussed confidence -- California I outlined wildcard, which did California. the was the we we prior installers. quarter. the

we are and So few the of in our to confident the that now, seem forecast quarter in right trending weeks be direction. first

Kashy Harrison

Fair enough. on it. as question my IQX. follow-up is Appreciate And

share release and international indicated and can later said markets, year. from a first date, I ramp product, half to perspective? would IQX U.S. you XXXX just thinking you're You how in XXX%? take commercial about for you pilots the about the think to using this long How it then talk And strategically, lower-cost a in both

Badrinarayanan Kothandaraman

the the frame I first -- the today, I in on two say would One for would with ramp U.S. that a are Yes. And time an probably right X microinverter like for what bread typically, new to a is in we is product microinverter and the be microinverter. that XXX-watt flavors. going the XXX-watt our introducing. The IQX. is we we're of butter that would XXX-watt all, and quarters introduction be consider are experience IQX, a working other would from the based year which upon to and X

So two and flavors, XXX XXX.

the more get In lot interesting. things a XXX,

volts well as watts commercial X-phase now have for We installs. small XXX XXX XXX the to are going as

as form will much It's with doesn't it thing good. uses similar factors. higher got is The it much So nitride. principal power dissipate good gallium that about Gallium high -- be IQX efficiency. heat. And nitride a enables

form AC microinverter using well So we higher go we don't it us gallium DC when are operate in And to working it effects, need of as the nitride kilohertz. get need X-megahertz, XXX gallium blow get advantage to operating with we or operate to we up in order we able IQX, megahertz. our are to at allows today to factor. as that both and other are used we frequency. we can is -- the up With the -- our are in a -- to to we capability on nitride, at -- ASIC Earlier, at to

But once your there. get you down. all who anyone a And transformer big know knows inverters rid can going of can go get you about basically and what to a happens dollars sizes is then lot that in megahertz, is the transformers there of

area power So concerns to higher you're in more since will tighter, now because the get form not one terms things that of so of a efficiency. always get lot they due up talking blowing the factor, is tighter about

When you your x efficiency, you XXX the lot XXX watts that have X%, with like, able power let's means of operate and efficiency. say, of gallium them you operate good nitride with power, a at to efficiency, are XX XX But of watts heat. watts, FETs, that's have, watts at higher same dissipating heat, example, for you're we XX% if

up to so factor. keep inverter, don't blow And the can need we with and elegant we an form it

FYI, the us, And For down. Because the per look it we more integration for continuously just as achieve, installers, better compact we in can make watt more the for microinverter, only bringing transistors need AC is. switch for at called because we dollars ways. the FETs X can both got as are we something FETs there we silicon before It bidirectional on X will where a side, silicon the GaN. the operate

lower same line. because the form level, GaN power your us just you're increasing will factor, back thereby with zooming allow higher the at to operate to watt dollar So efficiency a higher per power dropping

Operator

JPMorgan. today And from next question comes Strouse our at Mark

Mark W. Strouse

two got gross questions on I margins.

been the of to XQ a of you're other a mix of mix color of mix? the mix guiding bit in kind of as down you mentioned want international part earlier, as talking selling anything storage help. question I are as signal installers quarters. the period? far there you XX%, a For would confirm, couple kind of there about that's that that. from of kind what or to to last response XX% is to just kind just to Any you've random Or given In Colin's guide, the

Badrinarayanan Kothandaraman

that question correct. XX% XX% installer what non-GAAP that's IRA -- without you talking on gross question meaning, which this guided QX. the Yes, from XX% was asking, for was was are there the I Colin, in mix, to microinverters margin But we

yes, And XX-megawatt hours. battery why? by increased our is question guidance Your we

to was ratio is As guidance That the to from we XX battery XXX XXX. are we QX XX, increasing increased means can we before. -- microinverter to see,

and better margin gross better you'll batteries, better the on numbers and see getting of are those We and continuously improve.

specifically, out I down called said to battery pack On continuing factors. come costs three the are cell I rapidly.

to are microinverters, the We now in beginning used battery. manufacture which are our

need Those the with that them credit, to We production the product provide tax made which that battery. inverters the U.S. we produce are is intention in the beginning manufacture exactly the U.S., in to in the will us

conversion cutting down the going fourth-generation And battery to direction the in then battery, battery X exciting almost And what's the by we get instead basically, is moving on form is third-generation are we And of microinverters, last each integrated is that Y the is one now management. one, to will happen cut have power which significantly architecture our the XX%. of third-generation microinverters and for have side more to where one factor. battery, going X we

bring in gross big in improvement of another expect that to level So margin. we

So our those and are takes puts on the margin gross batteries.

Mark W. Strouse

Okay. my question. then follow-up quick Very helpful. And

about quarter, $XX within units you about $XX million million talked On margin, benefit. gross a XXX being last the to XXX,XXX

For $XX you're if a XXX credit? wanted of of splitting XQ, million not million you're with of number to kind $XX just that sure signaling more I'm benefit. about that to I'm there, but but you're keeping talking units, hairs just see similar if maybe a

Badrinarayanan Kothandaraman

What of is building. there. power It few we that happens that happened upon are things a the the No. there depends microinverters is

XXX-watt a microinverter is the Sometimes build used per may battery. inside there, XXX-watt we a microinverter, watt that $X.XX we build or do the you may

function of a and purely of that function that. it's So a

out. falls just it So

higher The from you that we make, Microinverters make power which our small we we the we are as U.S. more beginning are why have, starting in beginning commercial well to QX IQXP told the I to -- advantage is

So those are XXX watts.

there. credit gross watt -- production $XX a is $X.XX So benefit tax gross

Operator

from question Praneeth Wells next Fargo. Satish our with And comes

Praneeth Satish

staying just Maybe the on battery.

to be than coming. buy versus battery, this its cheaper Tesla solution. think how battery and X. a this you I Powerwall to it Today, context with about cost to seems can going guess, and a I X an customers? So about do it you keeping the the reduction Powerwall looking like large out cost very that's in on fourth-gen inverter passing Tesla thinking guess, integrated there's specifically, savings Enphase of I'm inverter

guess to But it's string And I a earning while know apples I the using inverter. they're you have oranges gap margins. that because fourth-generation more battery, with the to ability close still

new you battery? guess year with think just that I next see about So I'm that how opportunity to trying

Badrinarayanan Kothandaraman

Yes. Yes, things give let I -- that, a about -- talked color you many there. before me on you mean

about integrated of You inverter benefits battery, battery. you just you you value. why we remind string talked talked talked to I about the competition, want into tremendous and offer about our

they're customers in they experienced. through. trip all my many have string our the X -- of used in weeks, you have have very no So troubles last and the idea inverters are of They gone of

customers on And they mentioned religion -- roof the us. safe some is them, AC for the of for

the So roof. safe on AC

at inverters. above have don't every by you. compare to their normal particular You ultrafast. Per almost to for you MPPT enhanced to Production, it okay, monitoring able That's high-voltage level. installers Enphase. say DC want are Production service because working string and the X% panel, when Per isn't of be on this Enphase and point that. monitoring, panel panel they they're we the can panel love get love XX% to from microinverters able many first thing homeowners our

open XX/X. are We

installers we any roofs you're years. inverters, And unlike on. XX causes that's most with. orientation That's failure XX why no single that maybe RSD, plug-and-play point provide have you count needed. different can you XX-year string your rapid simplicity, higher system. No love nothing got tough -- If orientations, of be warranty, Any devices, competition, in to for else. or uptime familiar Reliability, Enphase, additional our that install, in roofs it's Simple the -- shutdown all much

But running running off by a IQX jump you have on off batteries. sunlight if depleted AC to knows on runs power you've shutdown, for were your you're enabling say, down. Grid-forming this. I are you let's grid, battery Everybody start the turned emphasize, Microinverters grid, accident, battery, your

Then it wakes day capability is every ready and X battery that to and way what up opens particular happen next Black solar runs a minutes the I'm to all called has It Your the or the and for -- X it it few has a got says do down can battery Start. percentage. days.

But after X X% the in state -- battery of away or or the that charge and That below. to X goes that is the dead. battery even is drops energy days,

you charge -- -- the IQ jump of jump start battery form Microinverters, sunlight even do The that comes, and Enphase without could have sunlight with at up. the comes grid, you time grid, battery you start. Now state you the the

microinverters an example, America. our that deal. a that's do. our start Many of course, that. in So made are installers we being of That's And jump sunlight love big now

When UL and deal. chemistry, deal. big the very with that ion it there. have the fire departments lithium batteries comes safe phosphate, of we to XXXXA make fire storage, optimized big And sure we certification, worked have placement

in So for industry. warranty the lot AHJs of done Best it we a have in California.

years approximately. at competition XX see You

of moving the no parts warranty DC years, Our batteries. or XX Low-voltage is fans. operation

on inverter we take there on of more a inverter takes of If obviously, of lot where inverters that. which solar roof care you've storage, got you a and is distributed But stress architecture, hybrid see care that means a concept have a solar. the one

the inverter there goes other battery system You down, are the the storage. take battery that care is And to never down. inverters got in in The of one help. even if inverters

situ serviceable taking I the wall Field talked this, This didn't time, the I downtime. but say deal. about it of margin. gross is minimizing a in big battery without

big a you your a it the off thing we out Our battery the is overhead once system take it has ship worst him again battery. in you the commissioned to figured component take his to is The in for to row, and spend time field warehouse. off you or it how you not dropping then have installers to many is aromas. manufacturer running what, hanging wall. homeowner The valuable do expensive doesn't the aromas work, installing off to quite do costs because has the business bit a battery are expensive An have days on installer new have OEM to the wall, back the manufacturer product or a

homeowner off, a He $XX of With your hour, an take down. dollars, of and major add It lot. storage. instead The like in especially new a and serviceability can battery, solar be is losing take $X,XXX can that is that put field situ a out, taking matter and source California, losing of a up a is in our we board. place a running. can He self-consumption PCB the board annoyance. board, up In

double batteries previous battery, X-ton are hour enhanced enough one, start double and air X-ton hour our a our the of both that. to XX-kilowatt The conditioners. for LRA love continuous next the X-kilowatt hours is enough a X every power our and are peak XX-amp of installers X-kilowatt -- And power for so XXX batteries, that generation, to serviceability. And LRA. amperes An X start

Simple to commission. install and

like our of economic most much time a battery grid-tied The provides battery such saver the X.X. identical. is installed. simply are a what X.X all or example, rate installs installs install The installing -- Germany, grid-tied NEM has savings of For a scenario, NEM -- our a installs -- called our many or That is install advantage. of premium. or And use battery, is they're the install

in you're on X You AC than all and the of be you main X bus, you take is you size, there simply to upgrade, place done the off need kilowatt-hour X to you then worry roof, finish it, to with nothing there hours. hang -- the off it hang is no AC bus, do can don't batteries, it solar, AC our the you less your done to installation need is panel where about to

component connect no you're up you You same for use combiner and solar, extra it to box the running. and that

or becoming saver battery Rate battery extremely So that's very popular. a grid-type becoming popular.

that's that. So

So I and Storage Enphase told you solar the System. Enphase benefits of

has of with in is all at to solar look of mess got difficult the manufacturers mobile it's that. all you storage If problem The app. possible, having and a one And but homeowner of it's apps. keep multiple track

through grid that off provide the care new The doesn't who your from power technicians information an the app. XXX type. you well. valuable to the need well XX/X your all his big fingertips. take have And We service Enphase of solar XX-hour ability can control service on home take know, We as an as as both install. a with and focus system installer the as from is you with the -- customer So will spend provide field AC-coupled at is The system to He your batteries. advantage batteries.

combination power. means the So even more

system. course, PCS software. last to of That have And by software, don't inverter invaluable You not we way, is power to panel upgrades. going do And do for one invaluable one -- -- be old systems. maximum PCS NEM current That long -- if is your you as you X.X do the can your your simply your X.X installers your to system, as system output. main PCS exporting expansion is the constraining control one our do export even NEM energy anything consumption can still you X.X system, from beyond NEM to the -- want system energy old support expand while to not

expansion X.X is easier. lot NEM now So a

not value So stopping. we on and some color the that add, gave we I you are hopefully,

of cost. boxes batteries we are all we the -- to have cost going going on every to we eliminate plans are be our with removing do clear off opportunity, wall. to focused are was what sensitive. And be on boxes more to are on customers wall. with are installers, the with The We the me going and Raghu

drop we as So as question. ultrasensitive because are value we to in we need And to competition, providing so. aren't your will to do we response pricing compared if much

Praneeth Satish

Maybe answer. on batteries. very more it. again, quick Got on expensive one one that -- just

the that channel batteries. said for you normal So is

hours hours. for has that You XXX-megawatt guidance QX QX to sell-in equal weak XXX- there The I'm QX. assuming battery shipments seasonally in of at quarter. And battery at in are for a sell-through XXX-megawatt sell-through

decrease Because to XXX? of guidance the the a that XXX-megawatt slight lot can battery in you if Or from what's maybe business. hours talk seems there tailwinds that are conservatism? So factors? just it Is there's other of about like driving

Badrinarayanan Kothandaraman

it that And is questions would you're almost intelligent. said. guys worded me that I there. conservatism. I I -- is because carefully you knew the That The yes, ask said That's what

on So you're run general. but expect quite lean we right in The batteries. -- to battery,

yes, does there It conservative. is opportunity we that And for so upside some there. seem are

Operator

And comes ROTH Philip Shen our question MKM. today from with next

Philip Shen

is said I could a this you be QX? half that? in out either the on more QX And $XXX for chance Brian's to QX can $XXX Or if million to us normalized we the QX? track question the there or year. of Badri, of likely earlier call, last the on back in still think Back come would million QX? revenue. or gets So Are the you timing it is walk that, pushed through, that on

Badrinarayanan Kothandaraman

give And we we we described XXX. the for guidance Phil, know don't sell-through of that XXX you all but growing QX the nor described to vectors. Well, growth tailwinds. QX, of -- I And demand a are by from

in of takes all Europe. talked we talked about talked bullish And optimistic there. about growth about vectors. puts Netherlands, We are extremely Germany, France, and talked the about we are about We we we the

We a in new are lot of introducing regions. those products

we have that last -- the in expect We year. done

the states we we back We expect about them to take off. non-California seasonally up. are where Then bounce them seeing talked

like The are installers after X So said, was trip. California I also my shows -- data of trends. say -- weeks I what and extremely I California, would optimistic last X good to

to numbers in a about I go while talking in and and the we QX, up customer sell-through demand are So QX. demand million $XXX of QX expect continuously

Philip Shen

Great.

Okay.

definitely be bit you like. It very path. there So a on sounds still might risk, path, of but a see but little much

Badrinarayanan Kothandaraman

Yes, I do.

Philip Shen

Great.

of Shifting that might data Okay. gears be maybe ahead sell-through. even to

this are a X% amount a of and versus challenging market. guys pretty healthy share a from share. might be X% recent gaining did, XX% gaining in make potentially it's time, the whether suggests you source we with one of U.S. work that healthy That's channel difference. you And resi Our poll can big

that So that the and is if so the can what and implied you to revenue maybe that might sell-through track seeing see to for way wanted can see beyond? the QX activation be for what versus a QX, was And sell-in? maybe help you articulate you you what compared in us I obviously you do activation understand implied revenue

Badrinarayanan Kothandaraman

Yes. third reports, quart we reports, do sell-side I see do do see we we see mean, reports.

working on difficult and We installers times. these times. our are with are highlighting These in focused value

efficiency, are how trying is it all understand proposal, their understand can proper service, to we to with whether services the have, understand So it's help them is installers. whether whether understand whether it's whether their we it's their modeling, how it improve or Kaizen with to simply help them doing labor, we permitting, leads their the RMAs,

and going the no I the that gains, QX associated forward in us, a times in gain activations results to switches -- installers it show I but up with about as will QX There us, sell-through you mean, know, call. down highlighting. start when And what is ramping relationships share mean. increases. ramp That's because, as on sell-through market like I our using the definitely we reason say will to what one are new is X will And our for installers from these ramping us XXX% share will most that. any you're take that up switched with -- potentially QX seeing we we to weeks. So will they single Normally, any market that believe X product. And in would the report that report we

Operator

with Barclays. from comes question next Cho Christine Our

Christine Cho

between sell-through and year-end. $XXX a It's to by somewhere different $XXX million million get question So to to I'm XQ going way. in to ask expected the $XXX

how all give that take million, U.S.? Is it to then by by driven end of you inventory? X considering weeks? it versus like Is Europe but And you So done half? much Can midpoint, you what to the QX, driven then of it And by batteries? $XX that more more how an $XX levels when just the much Is comments is be of back you the us is let's versus of XX that assuming say normalized are Is you're it microinverters idea guys million. us individually, destocking just gave will Europe? it that combining of U.S.?

Badrinarayanan Kothandaraman

Yes.

of let them. So me answer all

expect XX-XX and from U.S. Europe. I have Europe We the do as We expect America vectors us. well mean healthy North for growth -- as

question other was... Your

Christine Cho

versus MIs batteries.

Badrinarayanan Kothandaraman

battery I battery? Micro that isn't attach Yes, micro states say, versus considering non-California versus high. would battery,

So is is micro on versus XX-XX measure our say micros weeks asked would last the battery, today, XX quarter, this hand. the I versus you rate, divide hand one would still inventory get rate, have looking what you backward we weeks is say. is the over typically hand this sell-through sell-through inventory that you on by way say what The on the we to the was And the on X is battery I is weeks. the

weeks One of will or last measure a would would in hand X, front increased the that they inventory, interesting the X that be for be the last forward-looking of will by if amount have significant rate distributors the X of weeks ways divided uptick, is, them that demand, example, on in weeks I it X shows which expect existing in weeks.

on forward-looking good times, lower so hand. hand inventory those will weeks And be on the numbers, in than weeks the backward-looking

channel our of We we measure the QX, This at always XX this it. rule inventory way inventory our general number QX. the thumb, in always I weeks. consistent that, at for example, you okay, divided is to X are -- -- been tell happened happened is tell sell-through this was inventory we hand, by the that has on for sell-through in quarter That QX. in, whenever what weeks of look And us, end for the I number so And the the you will what

smaller weeks upswing, hand that. on on forward-looking you be the are could If than

Christine Cho

Right.

you your that XX% were Okay. nuance. My X.X your the backwards. That's your did you I an looking prepared systems NEM in that -- realize interesting of not second attaching battery. said are question, remarks

meter if should color a us or shifting whether you a this your towards give Do -- using whole I'm more we question, the are of whole can when a of where with out? California. you you're sense sense installers are to with have installers of backup? roll Praneeth's development mentioned it it. you expect in you also product You just and meeting not -- bunch you a of in of one your missed And and your answered met But bunch with also install load the I leaning sure

Badrinarayanan Kothandaraman

Load a the That's right. is of right. coming color fraction shifting installers, meter is, when our the And then significant is out. second that's

when have for called insert one a main audience, both California and just main the meter structure. into something combos of basically, meter meter integrated the So you benefit backup, spent the main ugly the has These have And combos. to switch panel your in things everybody knows And a between. there's apart, that that. you of therefore, have you ripping like have doing lot to loads is put backup actually in labor do to

Typically, a is loads controller spent X and and system relocating in of center. main a load those all the or meter then the in day putting between

the around you microgrid elegant collar, the those loads. the It's you there With which means basically switch that way, meter. It's the a is the meter. spend at interconnect very at MID, meter that relocating -- have it's labor the at a meter right device that any color, comes don't where and switch the relay got

piloting the It coming Our version the by out shortly. be end will of the of meter color year. is

Operator

from James today And comes next West question Evercore our of ISI.

James West

little or their any you over how a base to you about real talked respond conversations on if me. met your about to about -- growth bit as quick installer -- in significantly, X as that California is a with all see ability they talked it, the does Based cut costs there Badri, back come your last weeks, you concern at one you growth? how the for the X pretty and

Badrinarayanan Kothandaraman

-- XX in million X all between less. The service. $XX if and they more $X They X people X are do revenues between the what or and can use No, very employees they and to, we Company you the think, revenue. I They are savvy core million people. they X become smart have lean especially even very less met think year see a to They segments contractors means team. And year. of X much generate well. to as and than $XX million annual they're crews, representative That have managing typically probably $X X I is relatively usually long a they teams we have megawatts crews tail. than million money --

have shouldn't options available less that They They inventory. don't be in know they they more They them. has times. changed that have to other a big thing -- be should they lot money. these is One now financing waste lean

meet of PPAs. I are least to Northern XX% maybe lot So of at installers did leases as they them, no they work have a do California. well, of or cash the -- available options them. as were have loans not in well the still to Many customers if -- Those X/X Southern have They California problem. selling

other folks that But who lease rapidly are or now multiple there are to the PPA moving suppliers.

all, exactly a They happening. savvy to what is are number understand of the I trying what improve even products. So us are do they all times not than in say to are grow think whether able on very in nimble. is able ideas -- times. like I'm I'm that They They in to gave They'll better what doing. worried they good are us we be grow. will to we And these that going to be exactly and take and feedback,

Operator

today question Sutton from next of our BNP Moses And Paribas. comes

Unknown Analyst

Coming This can XQ, in the is provide a non-U.S.? of have And Heidi million versus $XX in was under was U.S. question. $XXX XQ, quick then you Moses. I the million rough non-U.S.? of how to versus the same on back in shipment expected much just for from shipments breakout U.S. what under

Badrinarayanan Kothandaraman

roughly in shipped, would and is, is that it the say, X/X that we expect which X/X basically ratio I Europe. would U.S. I the

Operator

Levy next Securities. with today question from our And Truist Jordan

Jordan Levy

with updates arrangement an in think, [indiscernible] SunPower. back end, if that the that, was I you to come scheduled exclusivity to had on any I March. know

touch on curious anything there's there? just if So to

Badrinarayanan Kothandaraman

Tom any Tom. to and we update know SunPower knows, as there Right business now, for everybody us. is talking been new as SunPower? question have The it's is, management, a well. on I usual has

We have a very relationship. strong

We well know. a sign And such let when you SunPower we are contract, vice supporting and versa. will we

Jordan Levy

updates just that role And mind other curious a as I talk with have or at end process? ready the someone I any maybe any that to just in or in I'm for June you if follow-up. to think, details could getting you know down, step if

Badrinarayanan Kothandaraman

the we're is already Yes, a already guess having question, question. Chief I Commercial time your is but got we think hard a Yes, I hearing -- I we this you, Officer the that. for replacement finalized yes, have finalized that

experienced because for put us. very in have is X executives Europe, that somebody in a understands very have charge I the We so live Europe wanted important I properly. headquarters to experienced executive who

so is me staff, that of he to to name running is going the Africa be sales. Europe reported executive his of one and And meaning all one our Sabas South

rest is Americas, he manage to both that's especially basically, of seasoned team. it, order South, in team. I Asia, North well north a relocating team call team -- the the And Americas, as So the Europe is very actually as then to world, in that American India, Australia,

We American North to Ken to the of the while going rest is report sales, will Fang team, Senior who Fang runs have Vice our him. world manage President, is Ken and

experience a Enphase is actually the business created high unit it one got and -- He batteries. and to who battery at lot the of So in ramped revenue. has

expect incrementally have as they'll for and a the and executive more to it us. be able attention lots we experience, lot to these positive both regions, to as of So be pay well

Operator

And comes question with today Andrew Stanley. from our Morgan next Percoco

Andrew Percoco

have for But channel, just all been the we this my second, if last your been I this zoom visibility out cycle guys just Most at are isn't a this be going can improving curious, answered. It's you doesn't see. questions maybe so how of the issue happen very that point I'm assuming to call. again? inventory into comprehensive I'm

a guess make are avoid next and you I more inventory how time? side go whether these sure platform, have shock the So be there's the channel in time the next visibility issues or to you demand that software otherwise, around, to investing next

Badrinarayanan Kothandaraman

Right.

It then to the on I into which is installs happen, the into is somewhat activations. the answer the converted and have then contracts, end, leads into converted permits proposals, mean, is So front simple. hold basically of converted metrics get get you

have front into So getting we end, get the we the to have end. into Solargraf. front And

is the customer -- us, are versus visibility doing, what broad is us every what proposal Solargraf provide broad we strokes gives interested region, happened and on what what give and in the the because it us platform is that leads software. but And to signed. doesn't -- for statistics entire the need particular of this or contracts design the therefore, helps customer we saying, trends month, us this a which

in we And do permits. the software course, products when the for then sell channel. to do And reports which And have of third-party from activations. own have our is between, for sell-through, have enlighten distributors we installers of course, our we

that putting metrics at Solargraf installers is and tool. and more there. point more that as to possible proposal So what and for revenue And tighten design particular essentially more by up so are entire tool that chain every are by coverage doing in we having on many

some So of then aggregate statistics. continue even we get a reports from third parties regression a have with maybe together model, lot create the and putting to more as sophisticated all available they of these to as help We'll much are learning. machine

us do -- think at for the we of Therefore, be the day, to into get the succumb by then -- to exuberance? don't into bands much selling not make used on the of the decisions don't the like rational key sell-through as the everything mass end call channel the channel? sell it guard how then into a into to boss always And to ship is ex to lot you selling channel that, succumb What more my That is a go to going than is you ever balance. great. are

whatever ship you of means out balance channel. you the channel, into Mass ship the

it. of we control we and already those putting process better in So in statistical all are for place, are

we because review, exactly to sell-through, the starting on sell-through. in why growth, on so sell-in, focus help much -- to much which above Any the start ship goes And do how training us helps increase XX real to is how the ways should we weeks which and we really stay weekly request time then installers then do every our within we is it's weeks. XX much is guardrails, it you it? somebody sell-in, is us saying, focusing Our many to are X have Wednesday, our graph going of

volume installers understanding enough which the of aren't with start you. doing You

on right in Sales channel. guys stuff versus the things are into pushing focused the

lot a last this year. I think better the company So in front has gotten during

Operator

from comes question And our next today Mizuho. Maheep with Mandloi

Unknown Analyst

question give leads penetration for or installers get in Solargraf to David is some Can visibility some the insights your U.S.? thoughts with us the This in share Maheep. follow-up. within on Just market. you on the I've sales and market then got please a with a trying

Badrinarayanan Kothandaraman

Yes.

tool. and using over We we our have design our installers tool. X,XXX have Solargraf over And using a proposal hundred on few permitting

Unknown Analyst

little about Great. like concentrated on materials? challenge source to you the any then going be markets? you And other from that X.X or the or bit talk mostly on impact Okay. NEM Can U.S. lastly, solar thoughts And where plan in a a California just nitride. the on the gallium annuities from on demand to the China follow-up, Is CBD thoughts

Badrinarayanan Kothandaraman

lot gallium Gallium nitride, we sources transistors. do nitride a for have of

Some the silicon FETs. we do of business people with already sources for are the

aren't worried. we So

is gallium quality the people There opportunities. with question will many of lots have We And nitride FETs. Raghu NEM take X.X. good on

Raghuveer Belur

our was we fact to because overturn. it's the they if actually court. the lost Yes, -- are case into seen react Appeals us, was the be -- obviously, lower there gone it's it's for I they aware Court NEM it to the challenge that do, think difficult will It is -- as where business going in usual. be -- X.X, But the -- to But remains differently. now, market of for this

We We the recognize go. plus are the way that to term, long is in solar out going there. battery

what take that thing, So best-in-class, we that's are not their focused solution working -- making do is their time, we doing and will now. the towards courts it's we and are on. But that are really battery really sure something they'll right but our

Operator

with question our And Moeller Austin comes next Canaccord. from

Austin Moeller

Just are on upgrades homes? or my look market that first new growth installed already here. battery question of installations solar What on home sales existing the like is arrays versus opportunity for

Badrinarayanan Kothandaraman

Yes, Raghu will take it.

Raghuveer Belur

Sure.

equally valuable. Look the on at I geography. depends think both opportunities it are

NEM you are So if going X.X have all you're to part be solar. in California, of for homes installed. And must new an example,

because need be to a obviously going your have about to you install if at solar-only you batteries X.X, So did NEM XX%. in

as the be hours XX-kilowatt add battery, as high XX%, high of as last You could X.X grid-tied NEM XX%.

ahead in sense complete So and go battery add that I it to a makes case. think

a kilowatt that for a retrofit be, ahead the retrofit again, because with their NEM the an themselves terms whatever called like that are more program. the an in for you're acts already go get whether in of resiliency of programs and the and purpose. programs people utility only or X.X of grid environment, per basically, or X.X, a do case, and batteries in and VPP you it for you may battery avail in or case for participation backup for grid case upfront California, until these in would would incentives, to that lot The on services come In case in case NEM seeing adding other battery for geographies, provides be where, California, at is if the you're outside other your dollar what VPP more battery that if use In in not ongoing hour system least battery. incentive want to incentive an of incentive of

in Europe Very similar situation as well.

uncontrolled is there do level get which there, of given market, example, the but the a at Netherlands, is a obviously, metering you that's look about you, net for If export for penetration penalized solar. because just push for there XX%, retrofitting batteries of solar

towards battery. tariff it program. So makes managing sense what's in by dynamic consumption. move adding a that is called And what's to a plus called do through especially then way by you battery system software, self participating the And that solar

other You Same well. also have in as Europe obviously Germany VPP countries that. and applies to thing

Austin Moeller

utility What current a demand you and growth Great. credits key driver as see a potential do to And you changes like And in that? in Italy primarily for impediment just see do in follow-up. as particular? Germany, it tax that Is to countries Europe rates?

Raghuveer Belur

Yes.

is as to more you're tariff inversion refer it in Europe, in seeing wherein significantly -- particularly buy and I usually, So rate the sell rate. feeding more than higher

into grid you of retail the what the the cost energy paid than lower for energy. feeding So is significantly get

no makes the economic single export it So into grid. even sense to a electron

It driver. is self-consumption. the that's So

top of monies. supporting the you in you a that participate on Layered is if paid grid program, VPP through get additional

it steerable and now adding It a chargers all that it's the have EV because beyond And if But driver ROI. And plus seeing that. batteries beyond Europe, solar assets in are you're those you goes are additional a pumps. for the solar, some pump. meter. that heat sitting towards goes So work behind heat better with sophisticated a really very the do and are economics very the home best system, fine like or energy ML EV do we and deliver doing, of battery, management which can charger all we very, you homeowner AI and optimization combination you're

And for any that matter, combination thereof.

in So Europe moving all you're assets. see energy to going system these of all these Italy with included of a markets towards whole management

happens year bill. a fully you what behind to that's from EVs powerful at use become the imagine consumption and optimize your or asset your another bidirectional, when Now sitting X you that meter now optimize yet can get

Operator

question next Wolfe Research. from comes today our And

Unknown Analyst

for quick a Just me buyback. one on

share with XQ, you quarter more less like flow generated. little your cash in you than whereas bought think a repurchases I more free generation, back up or So it looks in the matched

at the ramps think here? demand about these as cash hopefully of should just how your how up allocation levels? So repurchases you're attractiveness curious And back about we thinking from

Badrinarayanan Kothandaraman

explain but did add we I'll The in more. nuance is Mandy we QX, both did shares the approximately add we -- back -- some quarters, can million. in amount I'll for bought then Yes. color, $XXX similar and

our basically we bought million. about is essentially for which options a Those allow market. While shares And stock which stock did in -- back $XX-odd were combination, we some what was we the to options, didn't vesting. QX, dilute them did actually Mandy, we of

about So spent anti-dilution there. basically $XX we as million

market, -- us money, the the attractive, same So now. continue for amount shares as for long I $XX of in million, expect shares preventing million spent And sense, it which stock should $XXX out to is is you back did buying market, we mean, million the a continue similar a that. to do $XX into right the we we to as

Operator

question next Dushyant Jefferies. with comes from Our Ailani

Dushyant Ailani

I you being NEM X.X. XX% talked one on remaining NEM installers? backlog think Just much is how the with X.X about

NEM drill So expect to the XQ, going X.X? cadence how into can backlog we from down

Badrinarayanan Kothandaraman

that who X with installers had X an are of our the was a months. there was with months. backlog All mean And question. installer I backlog Yes. X there conversations installers, of is interesting -- there

sure sure we NEM installers So X.X their is within really answer the that I'm the I'm are were NEM But X.X. depleting still months, is. know what X.X They on backlog. But X through XX% Like the surprised can't number are number. rapidly. learning we you, it NEM I not forecast don't that will

down.

Operator

back question-and-answer over our to turn I'd Badri and conference the remarks. And for concludes any closing Kothandaraman gentlemen, this like session. to ladies

Badrinarayanan Kothandaraman

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

Operator

Thank all call. you. today's This you conference We thank concludes today's attending presentation. for

day. your You lines, and wonderful may disconnect have a now

Enphase Energy (ENPH) 23 Apr 242024 Q1 Earnings call transcript