ENPH - Earnings call transcript Q2 2024

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Operator

Good day, and welcome to the Enphase Energy Second Quarter 2024 Financial Results Conference Call. [Operator Instructions] Please note that this 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 second 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, June ended XXXX. a After second X, Enphase market for its closed press the release the results quarter issued

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

please of For most discussion SEC. a XX-K more the recent complete and the see XX-Qs with Form our and filed uncertainties, risks

or please not duty measures are to no been on in on statements new reliance and forward-looking to place result forward-looking on future undue expressed Also, financial non-GAAP this as have any adjusted undertakes of information, events you otherwise a certain update expectations. noted a obligation and statements note to or unless that caution any call changes charges. used We basis exclude

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

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

Badrinarayanan Kothandaraman

results. in and hours The for second $XX quarterly us discuss our batteries $XXX our million. million We was of XXX-megawatt channel and our inventory million, and free we X.X approximately million end for QX, today Good $XXX.X of of market afternoon, flow $XXX.X products quarter thanks approximately approximately joining shipped reported generated cash and reduced by microinverters revenue to XXXX million. demand

we normal to Our overall as inventory returned levels QX. exited channel

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

we Let's discuss how customers. are servicing

Our worldwide QX. XX% QX, XX% was NPS in up in from

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

AI initiatives drive several have automation further and We and machine learning reduce wait to times.

operations. about talk Let's

from of that is tax approximately capacity for are quarter, shipped microinverters around million units QX, in we global XXX,XXX X our Our microinverters X.XX per contract those XXX U.S. manufacturing U.S. In credits. million production facilities booked the we

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

owners more IQX later asset Our lease microinverters this ITC for adder. the content on can U.S.-made domestic PPA call. XX% I'll qualify help discuss the in commercial and

pack our China batteries, sufficient in support cell in For capacity have to XXXX. suppliers our ramp-up

to in QX China. the batteries made in power domestically using from enclosures We plan conversion, battery also manufacture and with management packs while cell U.S. starting

Let's to go regions. the

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

normalized, providing increased our U.S. of going statistics detailed sell-through not are dollar In and we QX. QX. QX X% regional With For our metrics to U.S., forward. business, visibility up more breakdown in the our the for providing overall compared sell-through products we we our -- QX. channel compared be not into revenue was The to sell-through will provide will XX% in

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

to sell-through up compared non-California up X% in XX%. our overall was sell-through for The microinverters was QX. X% For up for the was states, and QX batteries sell-through

revenue our to inverters was in up business indicating was flat, has The our France microinverters compared NEM sell-through Europe statistics to Germany. the compared sell-through and The attach in sell-through to in Europe, of call. QX was in and in up rates. our the in in X.X QX our more X% California on compared provide high key In up that provide in on QX, of Europe, QX. of color batteries QX. flat QX NEM some was of California, X the the flat due was X% overall the later XX% QX sell-through our I'll QX. products of I'll batteries markets our was sell-through overall Netherlands, sell-through The and was In battery stabilized. micro up our to our XX%

Netherlands, by down sell-through challenged demand in was the continues uncertainty. The QX. overall solar to our In regulatory to be country's XX% QX compared

to expect Management batteries software without QX, compared a that our storage electricity installers battery Netherlands. this and we wide. become during that in tariff between in We systems, This increasingly battery solar can X-kilowatt with However, for spread X.X making their recently or will third-generation Energy IQ start in flat pick overall see to with beginning feed-in as The market the even we in France, our solar We QX. will QX demand homeowners hour rates up. become to as continue, important dynamic especially retail more prevalent France of launched offer our trend allows launched In plus system our system well. to work battery the are that rates was is and payback modularity a expect deliver economics electricity either a sell-through Enphase along Netherlands the allow NEM. healthy to

growth software on France in our IQ introduce and IQ compared to QX, chargers sell-through Energy earnings we was the Germany, In call. year. in overall EV in reported X% in expect the QX up previous Management building later the We to

served battery and market. Switzerland solution Intersolar we X-phase will available that increase exciting products, unveiled some for our June, our backup Germany, at Munich, Austria In

the the Germany out balcony year. roll which In systems, our Europe quarters. addition, plan small our approximately microinverters we showcased believe our Enphase throughout XXX solar megawatts served, solutions was in ideal increase a for kit, we by Balcony IQ in will We available market and these to also coming

Europe. about comment general A

energy high Spain, all-in markets and Italy, with Sweden and from We microinverters, solar and U.K., seek homeowners quality, savings system, in sales our product app support own We aligns well IQ their software Belgium, more experience strengths. chargers, our accordingly. the X challenges are introduce Energy but Austria, Switzerland, opportunities, Each entire our management and Luxembourg, an still IQ IQ safety, installer and platform batteries, more. home portfolio, scale has plan graph which the its countries to EV European across country increasingly underpenetrated like and

Asia. in to come incremental making Are Asia. Let's we progress

has IQX in revenue small, of doubled Our from of although microinverters. year family with introduction India, ago a

valued. a good team safety we and place. help have in We XXX In Brazil, some traction We are quality solid gaining highly installers Thailand and with tail good in approximately partners. Philippines, the work distribution of through where are long

IQXP our microinverters residential shipping these panels. into currently to newer, are markets high-power emerging support We XXX-watt

In the Australia, year, and there Later a third-generation into approximately panels interest product will for IQ including microinverters is voltage DC we the this products microinverters We Enphase battery. and input higher IQXX introduced Australia, in year more be this our system powered battery. Energy by ago. introducing grid-type

provide me Let some to and come NEM statistics there. X

California demand second end stabilized As I in quarter. for said has us the the in customer before,

a our California high systems have NIM attach which installations of were of These rate an last of NEM X.X to week, As have compared over battery systems, XX% XX%. XX% attach rate, X.X.

the We the revenue few I year. system X using Our of calls. have per data data Enphase the also average the what last back Taking in shows system. consistent into revenue approximately systems stabilizing with NEM reported earnings are that will batteries, our half of NEM X.X account NEM average to is contribute half X.Xx in our this X.X California believe our this

market words have internal the our both few stable share a and microinverters Let me and U.S., share. according say about In data. market to third-party batteries

a inverter more sale. some interest there in common As centralized batteries California, become is in

safety. in continues of success string proposition. value systems to AC-coupled be architecture, over significant offers our which reliability advantages unique performance, We strongly believe Our terms driven this inverter in by legacy and

Our are even IQ system. the which improvements to combiner They to XXXX. battery our in install easier faster available expected to are hour with XX-kilowatt our making IQ fourth our we enhanced system include Collar, backup Meter will all balancer for early further and become applications generation be and

we like a tariff helping Additionally, is software complex homeowners maximize our X.X. structure for believe essential AI-based NEM savings with

QX our to come Let's guidance.

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

We Europe. XXX-megawatt improvement of incremental hours our anticipate batteries. slowdown and XXX- seasonal ship in expect We in IQ a between U.S. to business and

to booked XX% backlog position over midpoint of revenue guidance. in -- are to year. overall our the is our had the last We the we healthiest This have

about products. Starting batteries. with IQ talk Let's new

almost been industry-leading, capability. and has received, quality, well have right we battery to warranty, and offers Our an now. the power IQ modularity serviceability, It differentiated third-generation converted third XX-year batteries generation

Canada, in begin America plan production early our and North battery have Mexico, more We Luxembourg. the battery recently U.S. and started Battery our Netherlands in generation in expanded later to We to third-generation in shipping year customers XXXX. the into IQ and Europe. the France, pilot full in We XP, countries

This battery battery feature will factor, a conversion its structure and a better and integrated smaller management cost to form architecture. thanks new power

be collar reduce balancer with the will Additionally, the Combiner battery the introduced our enhanced generation along IQ cost. to meter fourth and system

are have the in We As mentioned, microinverters the of countries new many now year. we previously plan enter expanded countries. with XX present by to IQX more into many end family of markets and the new

Germany. solutions housing further to to installations and balcony European of out small market starting by and with solar served simplifying aim social available increase We solar systems countries, more our rolling

of this XX and product year, expect to ranging of have The a XX of in quite per kilowatts quarters. site. December other North is commercial microinverter suited last from well kilowatts. installation has IQXP with installed coming been We system product an XXX in variant growth solar small over we cabling feedback X-phase and in positive, accelerate the America to sites new solar average for of the with XXX The this launched

began manufacturing from recently commercial our shipping Texas. microinverters contract facility We IQXP in

We from and U.S. producing residential facility. our manufacturing commercial microinverters are now both

asset solar Some for cost. is when at lease good and microinverter us domestic opportunity think with This XX% select allow owners racking credit bonus U.S. project equipment made PPA for be paired of will commercial of can qualify our content credit. SKUs, a this the batteries. and both valuable on for microinverters the customers We U.S.-made to which overall

volts which for update gallium to XX DC power me output microinverters lower Amperes IQX higher market, up cost. grid nitride XXX is will high-voltage the will higher input at including gallium voltages, small an brand-new provide with commercial on Let us. currents these IQX deliver support nitride. transistors, market family a Using microinverters AC for higher and The

this product on launch are to We in track XXXX.

is what seamlessly The phase cost discuss homeowners by Let's We key European a current upcoming June. Europe solar the or year. dynamic Software solar using in single-phase for in Intersolar XX-kilowatt to features at meter showcased in and Other three-phase include single allowing option. top Enphase OCPP-cloud ampere optimize offers charging and integrates X It versa to Munich charger countries. charging energy. fine-grained We Green a X-phase from and charger many excess switching XX-kilowatt the XXXXX, control called. is and support option and our a with [indiscernible] charging. EV chargers EV batteries to ISO countries vice for plan this introduce to to Phase from charging. later green few maximize to the car, solar

EV most for CS-XXX the fleet electric Additionally, powerful we recently U.S. launched in vehicles our commercial charger

three-phase VXH will GaN-based team for a as for XXX to up applications with feature that will lead both single system. modular phase EV and will XXX providing compatible part is The volts electric and charger kilowatts Enphase charger inverters of applications. Our the vehicles. volt charger VXG developing XX be capabilities and XX bidirectional kilowatts The bidirectional enable

to release XXXX. late targeting in are this product We

cover our now software. management Let's IQ Energy

ROI enhance to periods Netherlands helping as We dynamic forecasting our payback as hourly. services. markets train optimization. fluctuate using technology scale the to energy electricity rapidly of and is from maximize a latest and QX, software complexity and evolving over to AI rates, million software prices our our in for AI manage products ML electricity systems. by models In crucial we and data launched with We Our see reduce handle AI homeowners growing Belgium and X and

the proposal to electricity design, rates, permitting the delivers platform. Netherlands. for that Let's dynamic the recently the our Solargraf energy of Netherlands. and installer With complexities address support discuss software introduced software our in built-in financial calculations markets We platform Solargraf,

release is expect and coming residential commercial also quarters. in to countries Austria, to the the many available to Brazil, and Canada, installers and Solargraf we in Germany it U.S.,

quality and conclude. me delivering focus a best-in-class to remain home Let systems strong with innovation, experience. energy We on dedicated customer

last our have the set new reach year, global Over to worldwide coming years. an and in have we pipeline significantly products launch exciting the expanded of

of QX. by successfully normalized end the channel We have our inventory

compared as to X% Our increased demand in QX. customer by has QX

battery Our is with to business quarter. also doing growth from quarter well very

the in a Our bookings in QX been have year. they are that healthiest

asset U.S. PPA manufacturing commitment and early leased owners. well us with to commercial positioning is Our

the for the We in consumers. to also improving U.S. later rates Fed economics the lower expect year, solar interest

Our bullish about prospects. other macroeconomic Despite challenges, efforts to are promising. we capture our revenue continued international market in share and remain confident in are Europe regions our and long-term growth recovery also

I will the finances. that, over review With Mandy to the our Mandy? turn for call of

Mandy Yang

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

XXX.X million, our margin Total non-GAAP QX. megawatt for without XX.X% margin provided for was section our Non-GAAP approximately for of gross million found net can for have earnings shipped benefit margin these to included DC in We IRA for $XXX.X net release IRA hours posted which was Non-GAAP gross QX flat reconciliations XX.X% gross batteries IR from XX%, QX. also QX we XX.X% in gross benefit. financial GAAP today, was and IQ to megawatts quarter. of $XX.X QX be was margin slide. XXX.X in in Non-GAAP compared QX. GAAP the of measures QX of microinverters the revenue

million operating QX to expenses were for compared QX. for million $XX.X $XX.X Non-GAAP

customer We stock-based [ million amortization for for operations for $XX.X compared a expenses continue new loss was QX million non-GAAP assets restructuring service compared QX $X.X QX. million sales. million of expenses, QX. acquired million to GAAP $XX of for operating $X.X million million from million products, included and On income basis, from of invest basis, impairment On for compared for income ] expenses GAAP to a $XXX.X $XX to Operating were million operations QX $X.X intangible QX. compensation QX for $XXX.X was a charges. asset for of in to $XX.X and

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

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

by employee spent we and $X.X reduced to addition, approximately stock in QX vesting options taxes million withholding for diluted by that the shares In shares shares. cover XX,XXX

flow working due capital management. QX, we cash free $XXX.X plan. and We in expect from our $XXX to to this in In anti-dilution generated operations million flow million cash continue strong

Capital for manufacturing Capital for increased in $X.X million U.S. QX million spending. $X.X an due expenditure expenditure our increase QX. to to compared was

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

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

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

to XX% the benefit. gross benefit be within to with non-GAAP margin XX% net XX% expect and IRA We IRA net range of to XX% before

acquisition-related gross Non-GAAP excludes stock-based and compensation amortization. margin expense

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

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

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

excluding effective minus that, the our with for items With or and non-GAAP net XXXX X% be XX% to rate, expect GAAP We annualized tax at I'll discrete for questions. line plus benefit. open IRA

Operator

question Instructions] our Shen first [Operator Capital come And will with today Philip Partners. from ROTH

Philip Shen

midpoint of up was QX but million. $XXX meaningfully. $XXX QX here is on are guide batteries sell-through. one The First million your

in you then share And of potentially wondering, Or QX? $XXX the the it expect was you you return sell-through revenue. there's to the half? destocking do you in $XXX normalized when on still million I confirm if to no could it QX. to in for is million So to what more table 'XX? expect back Can Is be

Badrinarayanan Kothandaraman

And -- under shipment over There shipment is sell-in have the do no we not you think In destocking as report for on we should us if about between to balance then only QX. always now need words, and balance. sell-through. a or achieving other

So balanced now good in and we the going forward, shape. are channel is

the question, your million, optimistic. we are answering on So $XXX very

$XXX.X sell-in good million, QX $XXX optimistic. guidance extremely revenue at our QX sell-in million. midpoint in are the see, is we can our growth of a was and for you That's As revenue rate

So like talked what I normalized have successfully channel inventory. our we about,

healthy. is very QX. We -- went or business megawatt QX million XX.X battery from to Our $XX.X in in hours XXX

California are Like guiding QX, demand regions. our customer compared to we to Now in QX. what in said, XXX as is X% increased XXX I to addition other it the in contributing and by to

So a some XXX. to and there why conservatism we building XXX in building potential in little gave into our we risks guidance. you of bit are That's

worldwide the you Our that in are QX we they a after base. risks I continuously removing told about been evaluate over bookings and bunch bookings year. of have too that a XX% on healthiest a

Our early This and PPA with owners. for positioning U.S. commitment bluebird asset to definite a is us commercial manufacturing is lease well the QX.

to later interest lower in rates We year. the Fed the expect

for tailwind, also will U.S. a economics be improving solar So that consumers.

many so countries are Our like Europe, said, there in There progress. I in are efforts what good I to QX, is where what like But we seasonality. are making said, share market Europe, Europe. capture underpenetrated we

about feel So very QX. growth optimistic we in

Operator

come JPMorgan. question next Strouse will Mark from our with And

Mark W. Strouse

the ready leading getting resilient. manufacturing your be margins scale. remember to I So to up very micro to gross continue

You of could of as gave thought split you guidance the as things. credits X XXX keep. far I'm the tax kind on you curious that

a to customer as think also ITC battery to Enphase And that you? how to look if us Just to for $X.XX a content ramp adder an potentially pricing On per passing ready if much U.S., in that incremental like versus to the get split could do simulate then demand? credit comments on going any gets would of be customer you the out can might being $X.XX give domestic side, helpful. is the the watt, of keep strategy that what with you language that there,

Badrinarayanan Kothandaraman

Right.

the we margins on So question, first gross basically, lot. work a

have for that continuously going We a reduction program on cost is and microinverters batteries.

generation We are of continuously going a our our -- make the cell also it. dynamics improve. are non-GAAP in I'll down, progress in batteries our the going we and in lot expect third microinverters margins the the And fundamental U.S. pack I are architecture are tell without IR making fourth making business you from are the battery making gross some in rate for to starting microinverters prices the generation. changes we the to

serviceability Additionally, it you $XX situ advantage board a becomes ], that It basically of architecture. which taking out batteries we easily [ even system replacing the have made means is controllers the worth be modular. XX%. and only take wall, problem very you simply them of in in is that and need often the may third That's for and means serviceability do serviceable battery. $X,XXX our a not to generation, backup not approximately the XX% service the the of batteries a

very actually, we on both margins, and without with IRA. bullish are margins, gross gross So

of as benefit your from comes IRA, us far IRA on most for microinverters. As question the

The talk benefits. in the microinverters increasingly good on -- are now is is Last we to made only our it. about is together early batteries. U.S. inside too our The to the It content. are we We are the news ramp have domestic batteries on act the starting question

to talking with and are everybody the We out working matter, them. that we are details

down? the intention keep to pass of thing And that I'm not or a PPA is end and are plans it it are sure this Our is consumer. they providers lease going good sure may the going several themselves entire incentive they I'm to for it whether are mix. what be for a ultimately

are concerned, even we mean, factories. will we -- us, be for as up far involves I setting As more it

For example, U.S. the enclosure the previously, manufacturing in were the we for microinverters

XX% to the the incentives are watt, is talking we that manufacturing we going especially to setting cost. the with charge about of $X.XX range will ] But Now consumer, are we for this end in a are up basically be looking enclosure a the U.S., factories for in of good project is we and [ be value. thing which

Operator

Brian come next Lee The Sachs. question with Goldman will from

Brian Lee

Maybe Just peer maybe side, on talk the competitive Badri for Can is -- direct the Powerwall some gaining and reports either test traction some thoughts at flip around most struggles. MLPE about landscape or this all? the your then you Raghu. X having

you, is And seasonal kind in the in XQ, might mean bounces about that seeing, we fair XQ? think assume share moving you some that are could uplift Just back what grow talk at kind market of you like you mentioned XQ, some battery pieces, if we XQ. sequentially XQ. you gaining content you you as domestic then Badri, of demand at what's to the just is see all of looking landscape but all Europe traction? about secondarily, are for it can quantify in do the to into it And then continue to shipments take

Badrinarayanan Kothandaraman

give then will Raghu to detailed color situation going I'm some and add competitive on more.

to The is did And X.X. who remarks, not increasing. people prepared California listen in NEM primarily the California our battery steadily we're on are attach For talking ramping here. installers my about

said, like QX. hours in QX. was to XXX Our and numbers, XX.X what QX, overall guiding worldwide XXX growing to shipments in I overall, megawatt XXX in

a attach from is of lot indeed. coming last week battery California as happening. California, it our and of of installations So

a we and data, per lot installations brand-new week. do So this is of data, fresh

X This X.X, point to batteries. than obviously note of One for for very or So half is is for solar news NEM NEM you X good The been more compared to X.X. to are our XX% data is Battery NEM X.X consistent NEM attached is last quarters. XX% has X.X. important, the X.X still type. we Enphase is system, greater our proposition And X.X, this high no attach, XX% NEM be is can I X-kilowatt say no over The hour battery, strong just the balance our a very provide to complexity. customers the grid are NEM data, used. type batteries for we not in ] easy is extra value batteries are but remarks, existing And [ did this box XX% grid-tied batteries. Many prefer install. X, of noticing combiner prepared

have will things We called more a can sure lot in Enphase that not that something what software Power Control make and do do software of any necessary. hardware we than need is to add

And no of I are XX-year panel warranty. about required because to in upgrades serviceability, XX/X Enphase highest Power you easy Software. the talked industry, And main Control support, warranty

don't do to We that able use architecture. of are because fans. We our

have We point single failure. cooling, of air no

backup, is dollars going shell little about are a to balancer XX-kilowatt more streamlining because to has hour we a the useful be For backup user That our complex. And probably more is systems. for backup out is backup, battery.

basically of the new are basically, eliminating and XX-kilowatt the And have we to a we a battery. have our reducing there, embedding controller, we going have combiner they number to best-in-class we solution the there. we'll neutral, hour system things are We enhancing so are are buy. And are

anywhere is from the PV first DC because range didn't more. the panel for factor, no Per high-voltage inverter in could enhanced explicitly that people a percent architecture, of our most power advantages obviously, example, DC of production XX% AC in it. I product select no over all, string single side, power high Europe are a roof. couple to monitoring. say production, On safe That's some high-voltage simply your important on the numerous,

warranty to is be is important monitoring for Switzerland and panel panel Austria I warranty. about talking content inverters, the was that per XX-year And everything recently, may obviously, mean, we in they was readiness. we matters. I very see monitoring domestic XX-year happening, them. XX-year want warranty say, our versus

course, good competition ready. domestic battery. So also there, solution that believe a and we microinverters both we it are even And to our better will we make and be have going for of readiness, content

value there. to able be some we'll So capture

do the all to At are it's QX of qualify expect the Ragu guide situation. to is those Battery, pan this expect the domestic talk QX quarter. much on conversation point, content, we about includes and in I'll anything takes X. we a growth. I'll we Domestic but number but So situation of me the other to puts have having, content more. and competitive anything, for content little are growth? how domestic do QX the out the answer expect And question. that more, competitive early we fourth it Raghu

Raghuveer Belur

Yes.

can have solutions, better I think the XX-year ] the a the reflected proposition. box is as the of proposition tied, just we batteries. strong we all connect about is battery, has existing if significantly the this warranty like combiner high [ as from structures it right? which a mentioned, Grid require NEM value to X.X that homeowner, improves. they compared get and value is into very have very safety. means company centralized proposition Badri which And XX-kilowatt And onset you about value been where, and NEM your for hour proposition a the big just becomes box, But so you for we greater phase value performance, said, arbitrage much better new even more reliability as X.X, think in anywhere, tariff no the DC when important much really, this

So of with be ] hours and power that the of in X makes XP a the Battery the can IQ XX-kilowatt high done [ it our modularity it our fact battery, battery, the make as of easy that to grid-tied good mentioned to very doing yes, are well. solution fit. install it backup, that as work for lot there's a we the Badri very, at also

in just the distributed always and long win run So we've always ability. reliability key, . cost said architecture for is decentralization is the performance

Operator

from come will question next Our Stanley. of Andrew Percoco Morgan

Andrew Percoco

$XXX just talking this to $XXX did to that you want come year. to million about million guys run rate the earlier I were back

clearing have the good at You quarter basis. a like over inventory. demand has or obviously guys channel million per relatively feels stayed it that so just out on time period, at job done a But stable about $XXX

that to I out to where and So XXXX growth I markets U.S.? of curious but -- be from XQ is here, don't in think or micro-driven? guide from the don't come you expecting going kind you the far you growth guys look the I'm we versus know come that how into what officially just then if much I Europe battery will guess are of And to out, in driven

Badrinarayanan Kothandaraman

Right.

So the questions not of a I prior there a couple I were answered question maybe -- you in of think the couple when ago.

me go let points. through So those

rightly very optimistic you not QX, but we upon guide seen. have we we said, As do based are what

the by We have channel normalized successfully end QX. inventory our of

to Our as customer QX. demand increased by X% compared in QX

well. midpoint doing XX.X do, do we naturally it business and of Our is to guidance, QX, XXX expect well. in QX, XXX QX, in battery phenomenally in

Our are the been you. that year. in they leading These the for a are QX bookings indicators have earliest

Our to manufacturing owner, asset the well respect PPA commercial with to positioning assets. early lease us commercial and is U.S. commitment

asset and there, that to them them solutions is we can So a which opportunity value-added highly solutions, huge commercial for offer and expect drive to one expect the be owners, we demand. to

are we year U.S. rates solar least Additionally, once hearing at interest consumers. will the improving economics for Fed this lower

I things -- effectively Netherlands, table, talked incorporating I at I side, Netherlands, think X.X, and dynamic just Germany. the of talked introduced about absence we sell length Solargraf tariffs And France. the I length at about are talked platform going like international installers absence at NEM the we enables software of that to to the On in kitchen I about mean, there, NEM.

France We greatest battery to third-generation France plan into France. the our latest well our very, in very all phenomenally stayed doing introduce and QX France, Despite our healthy. Coming there is introduced We towards end QX. early introduced EV the of these, chargers Netherlands. battery, mean, of I to battery for just we us. just X-kilowatt hour So has and

are hot water effectively we We software for introduce a for said to in Energy IQ meaning managing is going Management, solutions steering what heater France.

We IQ chargers the expect to there also introduce same EV as well.

In we're Germany, well. doing

the highly Our a battery QX June was with a three-phase overall solution unveiled sell-through compared smallest we battery Munich, capabilities. solution. size it's to our three-phase the Intersolar in and differentiated backup. backup QX. is with It's up smallest, This At three-phase

of off the efficiency have the user round trip when because microinverters going is innovating In addition, the enhances we low avoid consumption pretty waste. is to that on battery that unused phenomenal the and efficiency are turning

than round efficiency be going is better trip So competition. to

up So outages, and They really Switzerland, large in requirement Back backup. emotional there simply not homes like three-phase a that worried are but going and because Austria nice TAM up, people is are do because the an is open Germany, incidents by battery have to requirement. where a way, of Ukraine.

make one we Additionally, IQ and show. in XXX in allowed the is watts export from Germany go add we X consider that panels X of show June, Balcony extra panels, produces hit there the is there on solar. the and a and this can QX. the product launching we into X up into solar beautiful hit loads can because introduced at socket -- they product. those plug then our an That's are to even additional in still XXX was are and that X socket exporting Gateway where to Balcony the solar to of what wall -- basically you you're axillary that only It of Balcony can use our Intersolar And in to Germany, connects Balcony the watts, people panels, Gateway but

the I more, auxiliary is a open is backup, socket, is connection but the in a the will and still automatically side. there the the that into connected powering Further relay if appliance there outage, to maintains disconnect a if mean, wall power Gateway there

for Germany. of is megawatts. Balcony expecting XXX Solar, ultra low backup cost XXX there, So so a that's megawatts in we available TAM We're expect just

Europe. into everywhere solution that replicate to expect We

what the that's we So that's -- introduced Intersolar. that's -- at

EV talked Of I about it. course, our charger,

EV We my made France. a prepared the I in remarks are are statement going to there. all we in that And then in countries charger introduce strong our

in strong the we're Netherlands, in Germany. strong are We

Austria, in underpenetrated Belgium, and Spain, Luxembourg, Switzerland, Italy, U.K., Sweden still more. are We

supplier, They product And apps, all-in-X want they dynamic the supplier, to and rates. have want quality what app. want micro work and about, X entire DC. batteries, portfolio, want things They introduce another do we experience, thing. go to Solargraf. They from X They want don't They it and to don't thing doesn't all-in-X X do for from X no. And these thing apps, app. savings they an plan an solar want? our And They because EV them. all-in-one system same X want I high talked No chargers, energy homeowners software, to work. Balcony management safety. want high-voltage They Want inverters,

of a be are them QX. So will -- in lot are Many them of of available coming. some new products

said, to the be us QX. Some what available going all of them I like in propel will in But they are right direction.

Operator

And our from will Rusch next Colin come question with Oppenheimer.

Colin Rusch

existing and channel potential Can markets? for how and you about you much module the product growth the think geographies And you then of sizes from and and that the the How as can to speak market? to for is for that have coming talk batteries? the fit about market from IQX you any much product is headwinds the guidance and of introducing evolution bringing efficiency, new

Badrinarayanan Kothandaraman

we the you, a but usually I I tell regions, bit mean, will out little we seasonal. break Europe expect is don't Yes.

maybe California but is So lot a coming the a U.S. And a the of on little Colin, growth batteries. I lot flat think from question? down and growth growth second in in -- Europe, to your of

Colin Rusch

cetera, given The efficiency, as form the to any headwinds you're product module et bring that of market, factor, market.. you evolution expecting

Badrinarayanan Kothandaraman

about IQX, working allows for are very offer and I IQX on talk be a technology. to the yes, going can to iQX. interesting us Right. GaN-based hard we GaN higher It structure. is same actually, power IQX, IQX very cost is

what IQX. for So What will offer? we offer Enphase will

market. small market, We do are commercial be which first product XXX-volt is we -- will going play, to the our today, where the on focused not commercial

three-phase, XXX-watt So it structure. small product we will the commercial outstanding cost will market have introduce a for [ ] an

the we bidirectional have have, are X innovation ] [ key FETs GaN switches. -- GaN will We we is that X in of instead silicon

save So that cost. you how is

XXX drop XXX size is there at structure cost save to you frequency, those frequency, therefore, main you way big, kilowatts or XXX the if cost is transformer the even switches becomes high kilohertz run double the kilohertz opportunity Another big. and

to automatically of we which the will Europe, markets XXX also some for well as for the as offer And in the on a [ cost and XXX much for customers. watts be per cost commercial ] that an places the as absolute watts, be would that same heels the will this available emerging watt both residential be means will our as on well for are So IQX, product, lower. as basis goals make internal

of market XXXX. to expect we the in have lot plans, first into a So IQX

Raghuveer Belur

that market question. product Great right? fit, you I asked mean

seeing are up. to that continuing power go the We is module

already because with power our can fewer so can have you Enphase that in platform future address And go the plans, developed increase continues number in build that as of uniquely we up, and to power fact, same the foreseeable for system any modules. the benefit

are X-kilowatt you big XX if doesn't before, with it XX -- a with do now you can opposed As need modules inverters don't doing inverter. You box modules, is a inverter, right? it X-kilowatt to matter

now unique have some any So are platform to modules we direction comes address benefits it IQX which in we in and with with with IQX going, fact, module in -- increase the power. have the the to and when getting both better

Operator

And our ISI. Evercore next question from will James with come West

James West

question. sales that A to quick products? in the the That's is the new the that and Is adding highlighted penetrating dollars? first increase question more you've about under Is penetration? where What you're countries Europe. strategy it

the and second kind see of is Commercial question The Products there? around is outlook you the business what

Badrinarayanan Kothandaraman

are. into all which simple. is systematically regions, new quite It's products those of we Yes. to It introduce

has for region are it We microinverters every region almost up, today. example, following every like, IQX

need be end backup EV will will that told QX. be the three available regions by chargers, of and the you what I available the similarly And batteries single-phase with phase year. of will Some batteries in IQ again even then

steadily have platform in we Solargraf -- those make countries. coverage We in to the there are revenue lot a sure of all releasing of the

the platform The provide is IQ Solargraf last the that helps installer table. us Management value enhance can bit And Energy to the the homeowner the at Software. kitchen proposition

NEM minutes balance -- and an Netherlands, X, sure how every X.X tariff, are are instead that in may rates, there, time that phenomenon will region a some come. help aren't many of have a I'm an the instead dynamic where places So type Norway, but getting we a or few dynamic of use countries, day ahead. or its we there more that's there tariff be much ahead own are getting that, electricity And thing which will information tariff imbalance, us even now, a those Germany, in day Sweden, can

we are So of that. ready for getting all

that [ But do. to ] and all XX/X We do handholding installers, these the great that is FAE the and all coverage, we of are training sure more short our something products need available to them answer there sales, service, for is more well customer regions. making continue

I we expect products as don't I growth the So function, steady but expect over introduce years. a step

Operator

with from Dumoulin-Smith will come Julian next question Jefferies. our And

Julien Dumoulin-Smith

Appreciate the time.

kick Just to here wanted off first.

expectations SunPower Just here. quarter third on in

adjusted think on sure know fourth and whatever think it's about of how holistically, the then make been Just expectations about And to there. you you do you more that kind wanted I happens third here, guide quarter, confirm quarter that just as provided domestic but for maybe content.

you additional the the value think here? a How a we about talked we've you mean, close of year as about that in XX%. the in for bit recovery in do health backlog how more California, resi step sort with function little overall instance. of But out I ads a think about do being You clearly, that drag proposition metric out adding volume split. that to market seen of impacting

Badrinarayanan Kothandaraman

you. Thank

as on But you. globally, going the with comment here. exactly world So we we will to usual, one, we take you we always do when one. guidance the that first not is, in customer we gave to in done give we specifics respect have and risks That's that guidance SunPower, what everywhere

can demand it get be also and a the is PPA economics see QX the believe in providers, tell, domestic incentive content of content, the what hopefully, some early large it situation incentive that to for we the used robust. for the propel their industry sure installers for improve economics be industry, -- to because output making improve On again, domestic will to seeing. we'll to it's We that but we -- with positive, is like are start

we I are happy benefit domestic the think solutions, product are set And other. with combined and those today everybody we have racking products select certain content. will for or So that we -- right it qualify even today, to basically way provide our some now in we

microinverters for the and domestic closures which and that better quarter. our manufacturing We by ready getting making is fourth content, increasing are in that

available So to then play, But service and very once of able be able there, be the excited customers will in percentage is content increase to it. that we we'll I'm by domestic better.

has potentially Fed significantly propel with think to rates market I the QX. the got potential along this, the in

Operator

Craig-Hallum. from question And Stine with come Eric our next will

Eric Stine

how do that you Just volumes you think rates, be were were the until long time XX% then how And when way curious, any may mean about mentioned NEM takes? think you're through high storage it's your what comes? curious attach of just your I X.X. know X.X, that dragged for thinking you just NEM ballpark energy some to installs on you it think time, I for long

Badrinarayanan Kothandaraman

to Yes. you I were tell just if something. history mean,

approximately think X last told time you XX% months I I ago.

X-X. So right now, it is XX%,

from about So something the have I yes, another talked batteries, And X, eventually the you when right know go. I battery don't answer, I the economics, like -- XX-kilowatt they provide mean, the grid-tied XX Raghu will quarters to maybe X bill improves XX. if is hour offset, think

-- it ] can go X two go to -- [ from can have to you batteries, If XX%. XX% kilowatt-hour

So that's choose is batteries. that's tied. who for [ the people And grid spot two X-kilowatt hour ] sweet

back about chose talked in. what up we early too, there Now are who people

expect So There to full the is attach. -- see drive to if NEM still we only XX% you battery is X.X mathematically, do conversion converted.

the of many health installers, cetera. the Now of things like plays course, into this, et

QX flat first So think but revenue still I to of are QX microinverters up I all, I number, X% battery by, said And compared our I from in fact, QX. a has through cannot I split up, were was in XX%. up because, California to stabilized quite -- the means was you positive revenue which we it think and by gave guide

but one it is So it good generally news, quarter. is

significantly. be business to remain our optimistic we to drive that going is growth battery cautious, this battery have We

Operator

with our question from And Levy Truist will Securities. next come Jordan

Jordan Levy

details all provide on one the squeezing me continued there. you Maybe just Appreciate manufacturing outlook and appreciate have to a me. all U.S. in here. you quick I for your

an I perspective Obviously, and Just in you're Europe? how in with the get in both front maybe see U.S. about IRA going here the just a on upcoming wanted thoughts. wanted from election, and over Europe. lot the thinking to risks geopolitical there your to in then

Raghuveer Belur

like feel we We of sound right? very control don't course, have what happens business. think that, we But there, a we

of proposition -- our stands excellent. of alone it value these is incentives. independent the And Our business product

back brought manufacturing creating we to are -- what doing obviously, now about jobs. have IRA, specifically and U.S., the talking We're that high-technology So of more we now. the

investments. be And who making is we regardless government. . to that of are believe, supported We this, in something is the is expected

without all the we IRA. things share and like gross So think things. we are We you doing with the margin right with

So we're giving you a lot about regardless of of details business, our incentives.

to all So in seen. but remains think right happens have done our control, what the the not I I It's think we be outcome things. we are --

Jordan Levy

that Absolutely. initiatives just should installer follow-up. driving of of where certified and wondering to I'm Yes. quarter. noticed number growth are number I this battery expect what there And of just we a get kind kind then some quick nice certifications, those trend... you the installers the saw really

Badrinarayanan Kothandaraman

I number in that training mean of those are reflective the providing. are the Yes. are of we we countries we entering are

department a have and training in Enphase an we active We very have worldwide, University.

the simple, -- course, aren't grid-tied are installation although battery Of getting we installations there.

all are the both in connectivity that in wireless in XP had Europe it of trained cetera, some U.S. we have the lot need is fixed. of a The good training. Battery So and of some does installers terms we getting the of solved IQ as deficiencies earlier power And a et It those product. low

it's battery we with X-phase just it address And market. being up the you're what received to the are So now globally, seeing. following That's the U.S. well not

on You're about sort provide when in ago these problems for are from Switzerland, But like, sure We we once make perfect to installers, in a in month just installers, We them couple training, correct the strength Switzerland celebrate are installers. quickly. not Those There anywhere focusing and megawatts. are guidance. of X we We're example, X solve installers was all the we X our problems. a on the I days. know, I many them. times. that big Austria to that seeing met And about not

Raghuveer Belur

think solar this should expect I to from seeing think to is transformation you're this what energy. trend you continue. And I

really into battery markets of from have heat turning you charger now We about it's number this if to a solar made where it, plus reality look plus EV plus have at transition talked solar but a pump.

And transformation. so with see are can you our that products how aligning

introducing IQX the XP from with XX-kilo, We backup, everything you're introducing three-phase to doing what software. IQX module all on the XX-kilowatt match on at continuing of then inverter are our side looking the battery are battery to for increases, chargers, introducing power and next-generation EV we battery doing going our the

and with need DNA that systems, is because to us. to all And unique software are what advantage also increase. for the this So selling you're of the defined, for we software do seeing now is building good this is building hardware, that more our software this comfortable us get is, on systems that is a systems people trainings

Operator

our come question will And from Christine next Barclays. with Cho

Christine Cho

you great are batteries is said I the customers California, rate the But rest NEM XX% battery are think batteries said I backup think the not the arbitrage. U.S.? In XX% that primarily used for your your your rate for of in X.X attaching you would and getting time. outside are for arbitrage. who I at versus your of inverters Is grid-tied and are this different think California, California

you U.S. that is versus find for market in California if curious of share So your batteries higher rest

Badrinarayanan Kothandaraman

and have of program grid But is U.S., is lot are summer. places the the the grid some backup. the example, helping of Duke And an You're are where where during PowerPair batteries battery U.S. services lot used are a out, correct there simply using example. there the for you do outside especially a Massachusetts incentives for that in an

you're battery. NEM security, it they people for In of it generally some battery the is with longer. the though, why it function It's in in battery, rates. need of for a NEM world, -- NEM backup U.S. That's really the X.X. California, most Therefore, not when right, is a It's So the grid add security. emotional places kind is

game a in And therefore, pure California. there, it makes sense. there economics It's

between lot Market is as I but as outside share California would know well the And to there. so say California grid-tied don't equivalent. market the in that, sense batteries I probably the of Coming make market a answer share. to share.

Christine Cho

clear would general, XQ. hours I batteries you to is we I quarter-over-quarter. for your megawatt But be your gave know Okay. in currently weeks that and the get standard inventory for that the you numbers would say know weeks. be of we storage is said XX channel sell-through would X but sell-through And able And -- your you to then for also

Badrinarayanan Kothandaraman

the the to now the of to have batteries [ problem, that have. you ] make Well, good going weeks I'm an batteries. the tight where batteries. are less general, guardrail get stay very very problem weeks like to I inventory. the we'd weeks. need the us on enough than the NEM short for opposite channel I of sure on tight We to, to always to that's tell And can the installers but meaning that's in And is a X We're X in have right do in hand say, XX channel, is, would batteries U.S.

Operator

Praneeth from question come Fargo. Satish next will Wells with our And

Praneeth Satish

quick X domestic Just on questions content here.

you racking. QX. QX mentioned the in your domestic qualify inverters benefit that will domestic in come uplift First, lease the today, content no mostly But providers There's you use PPA with included assuming guidance.

QX could I guess any And first So in also maybe track on is, of or QX. be the the benefit we inverter in qualifying end QX. to is see question secondly, then tail SolarEdge

up with any extent will think some to in QX you Do of or market XXXX? those larger gains you PPA gains QX So sustain lease providers. tied do pick share the domestic into to content the

Badrinarayanan Kothandaraman

But But is yet. doesn't use right comprehend them Number comprehend doesn't It for right. QX. Yes. of is you're that guidance available. our some don't could that question now, X question, may what content know. first any already our I domestic guidance be

probably For own all content. their with come our QX, of competitors yes, will domestic

offer the MLPE, to also opportunity we enclosures the So we up in in domestic quite for have content by are to to And is need to the U.S. climb making a the made value way sure see us, right our bit continue our it customers. we

you only racking So can percentage number good us where need or less a from elsewhere. take that to

that QX expect and then out we're focused up of end by early to QX. go getting the we So there. on the demand And

Operator

Harrison next from with And Kashy Piper our come will question Sandler.

Kashy Harrison

following maybe normal just XQ. Badri, your global on that commentary channel is up the in

weeks. are You a batteries than question flagged in less that prior X

storage between And through, be health for geographic you by U.S. Just to help for so sorry, -- understand product, notable trying micros Europe think by differences wondering, could the are through? micros and the if I that was and there just us channel, other we geography. and any should U.S. of thinking

Badrinarayanan Kothandaraman

a you gave I number. global look, mean, I Yes.

Our It's global number gave is what you. I healthy.

will be means -- there I that -- some start if is by Of I to mean it we've fix, I there the on make are good It batteries problem it's not giving also mentioned weeks. focused a for which customers. variability. has problem country that X is course, fix trying sure you to XX a country, But good are to got enough at inventory. -- is that the channel to we we

some have X regions close regions to XX close to Some weeks, might might weeks. have

we range. And focused on that are

exceed that never to will allow We range. that

the will about into we process where ship in and We controls we place it have actually more talk channel. statistical not

way So going to like will be about we channel basis, and we the what I global we're why said, forward, it plan not keep talking a we've normalized is that on selling...

Operator

Dylan question next our from Research. come Nassano will Wolfe with And

Dylan Nassano

QX at or as Can the year? like the And into higher your being do much that bookings visibility over to improved you demand a how channels last last healthiest cleared? on quarter XX% they've been all year. compared is has you say Just feel forward the in

Badrinarayanan Kothandaraman

time the we We takes of not but because We is considering about and too XX% order number are and healthy QX, not and QX our the don't numbers the of that are and there, good is really do considering each the visibility over number. puts QX, for that's a week. bookings, give after right, number talking QX risks, lead bookings have some

by that book definition, only time. lead So within will distributors

Operator

will come from with BMO next Markets. our Thakkar Ameet And Capital question

Ameet Thakkar

kind question on had the term. just balance thinking longer of about I quick just sheet X

like, $XXX next to months. guys of over will of, think, convertible you the it, million You come have I call XX that kind debt

the You traditional of obviously You're mean would shares delevering little now. have or longer corporate a just talk kind buying sheet us about accessing you the thinking some bank just term? kind very to think I maybe of advantageous in about liquidity Or market back a position. on are you bit plan you the Can you terms bond debt? business? balance of about how

Badrinarayanan Kothandaraman

obviously, anything factory do that. will the content, I our mean, look, we invest need is the investment, things, of account domestic first like business, take priority in the right if needs to into we the

Second conversion. X value many areas opportunities we is the as done shares and verticals have few we And ]. there one, we're we a or the X power is, In don't in we [ the as batteries, that. repurchase systematically. in looking quarters, share what below done long And we software, we conservatively that have price we find And can. have exactly. intrinsic if last then estimated actively we've done third are is in we which meaning always are any Even at that new get M&A can and looking inorganically

per cash what Mandy $XXX And free million flow we at these back at is said, macroeconomic like a look a have managed tight well. cash something. We've taken do we board make you even along our excellent important bought her continue X basis. And out things for want team shares It's to is -- and Mandy, We'll our us. I million. $XXX on to we'll cash quarter. situation, free decisions add flow with our quarterly in said,

Mandy Yang

Yes.

that that of XX still is about out of away. next only $XXX we and year million due pay The our convert terms own XXXX March could amount of right, XXXX maturities, right? $XXX [ million easily debt In we off cash, months ] have

are current from now, earlier or of we the going to than optionalities we a have whether we year right? In there refinance, do So that. partially anything lot pay rate a off not environment, right,

Operator

our come And Jonathan with next question from Capital Markets. will Kees Daiwa

Jonathan Kees

that one [indiscernible] bullish have is in brought then you demand, commercial Europe your are understand, you prospects, Badri, a I'm in in if couple kind And of down terms reduction and gloomy utility and encouraged more another kind Netherlands said housekeeping. about your is year [indiscernible] their things, you they've can and employees reduction started a Two I for there. a still to you're yes, things have residential the who in is you're of and the in back [indiscernible] staff, second talked peer MLPE help numbers remarks for terms looking in of peer, June. And me and your trying announced quite guess for Europe. of specifically since this back and industrial of months force for their

you with I'm these the Is these data bullish peers, points. was So we your outlook off? really -- happening [indiscernible] trying are I take just kick something I last can market of know different outlook like And Or off guess it to doing couple Was else? months your the everybody this are in a tie improve? what's from of but terms did there. in just there?

Badrinarayanan Kothandaraman

the I think I it probably like we No, times for key underpenetrated is in I what call, said the country, you in X us, are Europe. said in And -- already Europe, dynamic. every understand need to

Germany. strong strong are on France, Netherlands, I we're those very in color markets. gave We detailed in strong in

our We well and are managing distributors inventory with installers.

we we and where We products other are introducing -- are opportunities have in underpenetrated, new of there. not we a where are countries lot

still Europe it Europe. learning it's for -- are we about -- into into So and us, penetrating

Solar installers didn't more just a they market have for solution So like, that love introduced Germany to high-quality we because and our lot left, access example, that. we a for like Balcony have

Now can access we example, that country, same charger. the they for have EV take IQ and the to three-phase battery, every deal,

want all every plus that get plus manage I and If solar charger better I deep software and to the high integration, integrate for us, went a EV need that's actually, charger, just pay EV like they Switzerland, is I are storage Austria, you with and to EV interesting. heat of was with said, smart We very market pumps. at for price when They see, to the that, what very charger but willing Switzerland and opportunity unique.

is strength our -- be to tail have We long work to installer. with

we heard, not are in the Unlike commercial. scale. that you of some utility the large-scale We not yet have in news

sector. but on the the scratching are firmly are we on implanted surface commercial, residential small We

you supporting inventory On partners growing was weren't X% helping strengths and are talked which of countries, the present we sell-through X%, tightly, up distribution to but managing was Netherlands was our Germany Europe, QX, the flat, and all a in sell-through bunch QX our down had France side, That's our was installers XX%, residential why before. of about growing up [indiscernible]. from

we So robust optimistic are and to our solutions countries very . all these of long answer, but introduce about there plans feature.

Operator

Mandloi Our Mizuho. from Maheep next will question come with

David Benjamin

on This the is you quick David half IQX. second half if in Europe. we decline first that X% were if a you I you timing hearing question. Maheep. I've pricing could competition a could pricing Europe, was in Benjamin launch? on I Is Europe? in any wondering, then clarify about had And on -- XX% was the got to there wondering, or comments from

Badrinarayanan Kothandaraman

QX, on too no, That's of then Yes. I mean, planning do. on it don't to any change in not the IQX, have though. the much pricing. second year we And We we half what we pricing think comment, are will beyond the be to one, and today think. our other not plans

Operator

question from Gosai Bank next will of Dimple with America our And come

Dimple Gosai

that, please? we're think last call, the you open taking what market price concessions, if hearing think becoming elaborate I I needed. And being think on increasingly from time. spoke I is the you Can guys to just Badri, from you our on about peers the promotional. Appreciate

between your the markets, strategy on how Europe X strategy? might Just differ U.S. and ASP

Badrinarayanan Kothandaraman

strategy Yes. the or I different. done no X for years mean, look, we is thing have same years, X our

called we adjustments that have something value do volume have their -- installers, we pricing -- provide. upon We based special

in are my the of the appropriate The Europe. we relatively on is will But need feel point don't the The planning going focused on is time, So there the very opinion. we to best this do. compared isn't add U.S. we alternative, to in we the that. and pricing extraordinary At value stable between situation Enphase add different anything are products next day, there nothing at end action. value, we take and to moment

Operator

our come next And from will with Austin Moeller question Genuity. Canaccord

Unknown Analyst

sorry $XX QX IRA the inverters million in U.S. in the line new I'm on with the million forecasted previous Two-part then on to guidance. operations. net I be Is guide $XX manufacturing and for facility QX, U.S. and in target facilities It's on sales running benefit first And to for Andrew includes battery up is the missed this part. second, commercial question. Steinar the of if the IQXP Austin. the battery U.S.

Badrinarayanan Kothandaraman

the Yes. To a answer, -- and we only we the approach in it expect manufacture need enclosure from to U.S. to battery is QX, content our that are We to the on going little doing things the the manufacturing. They're treasury. in power a in more and late U.S. due to already We which do changing battery we domestic we working few conversion, begin are because are There the to on also, are have chassis are the -- pull we on. management in guidance

going fourth So it I -- yes, and batteries does to on million to includes quarter. million, regarding include And the not include it the us does well. question XX the that's IQXP, true, it to take for the microinverters your XX mean as

Operator

come Graham And question will Price our next with James. from Raymond

Unknown Analyst

me Just Sell-through on was X XX% X down quick Netherlands. the quarter-over-quarter. for

was overall X%. Europe up mentioned You

your what normalized wondering EU just in slowdown does have the impact revenue? So Netherlands on overall the

Badrinarayanan Kothandaraman

is seeing you're the impact is This already. mean it I having. it

up were only there from here. the but Europe was numbers an sell-through opportunity QX and to Our flat QX by X%, is

to seasonally We opportunity in on. be While Netherlands at we because uncertainty. right consumers do kitchen as to consumers this Netherlands on them homes to QX we And regulatory hundred just introduced battery software help turn table have very better the a weak, are be what base. having is thousand attach. with still are going several sell stooped installed And working into little Solargraf is to platform. the high We're will an there that now, an installers working exact

the intelligent NEM energy the care when know take we doing penalties energy like things don't by providers. go. worried is management. penalties with They can of to They're software, about IQ from IQ going

charge grid For consume means solar. that our ahead signal the it when any called battery. more negative deck the find you let's has day It when example, can -- you that's there produce or don't is -- in tariff, PV, example, mean that this excess say, doesn't investor as to and tariff energy your you tariff. and you'll for But Negative actually an provide a intelligent paid are now.

Your paid to power. consume

PV. export don't You

business And come. PV. like are going that curtail models You to

with some to they because utilities millions because X-kilowatt installed a dealing of are add We capability can have many nice battery there do a base. this the several that assist can we want assist times, of and unique opportunity Many We would dollars of there. imbalance. losing we hour a have

products Netherlands about see might good regions I Balcony market. talked several X-phase weak enormous I other So The Solargraf we region. charger, potential, remain for in actually, I and will batteries battery, new think as the have well -- clearly time, some EV Solar, everywhere. that but potential for IQ And it

lot So of a to we're Europe. going be introducing products into

Operator

come our Curran from Tom Partners. question And will next with Seaport

Thomas Patrick Curran

year, NEM Badri, target to sticking XX% are gross And hit in with comes some X.X. so batteries battery Ragu, the in second battery. are my calendar X.X NEM question, a under of let's second to then California XXXX. you at When margin the say, half the your XX% attaching that systems before still point it of expecting rival's

your Tesla Franklin's XX%? that capture And interesting systems maybe been any But changes battery X we've think a Home that's has assuming there. trying with home been Power in Franklin of that? mainly is strategy been how for portion I Powerwall in smattering a higher SolarEdge's there of then to evolving and

Badrinarayanan Kothandaraman

Yes.

healthy. margin me doing battery I let think margin is coming [ our we between and we is, inverters. the ] don't gross and down Gross talked batteries about rapidly. But Cell margins are break it, clarify. pricing pack batteries but really

warranty in the we for will Our going That means are some U.S. the where the make benefit down. costs, increasing. microinverters from have Then service is we IRA serviceability costs we batteries

doing on of contribute by to of those So the factor deep And form and power the X number towards are cutting third that have then, some fourth architecturally from cutting GM, the integration [indiscernible] we management battery, quarter-over-quarter. are generation generation GM the we on battery where battery do down generation very fourth and significantly. improving sequentially we good the conversion,

helps architecturally. that also one us so And

continuously rival for that So the attach names. like to remained improve has what other can the been our reported the And X.X NEM solar -- systems one But on to I X It's XX%. that or will answer Enphase is we XX% margin. steady I question then gross last X name confirm other the say cannot quarters. and steady, cannot in thing. I who

battery, we controller. hours. grid talked are XX-kilowatt and -- an to Today, to about brand-new be meter XX% is a XX% introducing and are installations battery are those plan Our over system The we plans. -- will of going our collar tied, be we enhanced

hours So that and means the modularity will be XX-kilowatt X. not

the whistles. the are have Also enhancing battery will that a it, have and system to a in the neutral which combiner boxes. eliminating means of we we are in lot controller bells fewer And

So connect enhanced the even chargers, installer feedback taken just is can functionality EV and they there. it's

So on well I think there. are way our we

expect enhanced the generation quarter XXXX, the our do system, first expect of well. that collar, combiner fourth We in the to introduce is we which to and battery,

Operator

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

Badrinarayanan Kothandaraman

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

Operator

today's now has Thank for conference attending you concluded. presentation. The

at now may lines disconnect this time. your You

Enphase Energy (ENPH) 23 Jul 242024 Q2 Earnings call transcript