Enphase Energy, Inc. (NASDAQ: ENPH), a global energy technology
company and the world’s leading supplier of microinverter-based
solar and battery systems, announced today financial results for
the second quarter of 2022, which included the summary below
from its President and CEO, Badri Kothandaraman.
We reported record quarterly revenue of
$530.2 million in the second quarter of 2022, along with 42.2%
for non-GAAP gross margin. We shipped 3,348,553 microinverters, or
approximately 1,213 megawatts DC, and 132.4 megawatt hours of
Enphase® IQ™ Batteries.
Financial highlights for the second quarter of 2022 are listed
below.
- Record quarterly
revenue of $530.2 million
- GAAP gross margin
of 41.3%; non-GAAP gross margin of 42.2%
- GAAP operating
income of $94.0 million; non-GAAP operating income of
$152.4 million
- GAAP net income of $77.0 million;
non-GAAP net income of $149.9 million
- GAAP diluted
earnings per share of $0.54; non-GAAP diluted earnings per share of
$1.07
- Free cash flow of
$192.0 million; ending cash, cash equivalents, and marketable
securities of $1.25 billion
Our revenue and earnings for the second quarter
of 2022 are provided below, compared with the prior quarter and the
year ago quarter:
(In thousands, except per share and percentage
data)
|
GAAP |
|
Non-GAAP |
|
Q2 2022 |
|
Q1 2022 |
|
Q2 2021 |
|
Q2 2022 |
|
Q1 2022 |
|
Q2 2021 |
Revenue |
$ |
530,196 |
|
|
$ |
441,292 |
|
|
$ |
316,057 |
|
|
$ |
530,196 |
|
|
$ |
441,292 |
|
|
$ |
316,057 |
|
Gross margin |
|
41.3 |
% |
|
|
40.1 |
% |
|
|
40.4 |
% |
|
|
42.2 |
% |
|
|
41.0 |
% |
|
|
40.8 |
% |
Operating expenses |
$ |
124,969 |
|
|
$ |
115,149 |
|
|
$ |
68,401 |
|
|
$ |
71,169 |
|
|
$ |
66,250 |
|
|
$ |
51,696 |
|
Operating income |
$ |
94,036 |
|
|
$ |
61,824 |
|
|
$ |
59,400 |
|
|
$ |
152,412 |
|
|
$ |
114,529 |
|
|
$ |
77,165 |
|
Net income |
$ |
76,976 |
|
|
$ |
51,821 |
|
|
$ |
39,351 |
|
|
$ |
149,852 |
|
|
$ |
109,670 |
|
|
$ |
74,676 |
|
Basic EPS |
$ |
0.57 |
|
|
$ |
0.39 |
|
|
$ |
0.29 |
|
|
$ |
1.11 |
|
|
$ |
0.82 |
|
|
$ |
0.55 |
|
Diluted EPS |
$ |
0.54 |
|
|
$ |
0.37 |
|
|
$ |
0.28 |
|
|
$ |
1.07 |
|
|
$ |
0.79 |
|
|
$ |
0.53 |
|
Our total revenue increased 20%, compared to the
first quarter of 2022. Our microinverter shipments were up 18%,
compared to the first quarter of 2022. Our IQ Battery shipments
were up 10%, compared to the first quarter of 2022. Our non-GAAP
gross margin was 42.2% in the second quarter of 2022, compared to
41.0% in the first quarter of 2022, driven by a favorable product
mix.
Our non-GAAP operating expenses were
$71.2 million in the second quarter of 2022, compared to
$66.3 million in the first quarter of 2022, primarily due to
increased investment in R&D, customer service, sales, and IT
infrastructure. Our non-GAAP operating income was
$152.4 million in the second quarter of 2022, compared to
$114.5 million in the first quarter of 2022.
We exited the second quarter of 2022 with
$1.25 billion in cash, cash equivalents, and marketable
securities and generated $200.7 million in cash flow from
operations in the second quarter of 2022. Our capital expenditures
were $8.7 million in the second quarter of 2022, compared to
$12.4 million in the first quarter of 2022.
Our quarterly revenue in the second quarter of
2022 was driven by strong demand for Enphase Energy Systems,
powered by IQ® Microinverters and IQ Batteries. IQ8™ Microinverters
constituted 37% of all our microinverter shipments during the
second quarter. The grid-forming IQ8 Microinverters can provide
Sunlight Backup™ during an outage, even without a battery. And,
with the Sunlight Jump Start™ feature, IQ8 Microinverters can
restart a home energy system using sunlight only after prolonged
grid outages that may result in a fully depleted battery.
Our IQ Battery shipments increased to 132.4
megawatt hours in the second quarter of 2022, compared to 120.4
megawatt hours in the first quarter of 2022. We shipped batteries
to the United States, Germany, and Belgium during the second
quarter, and made updates to improve the installer and homeowner
experience. We now have more than 1,600 installers worldwide that
are certified to install our IQ Batteries.
Our revenue in Europe for the second quarter of
2022 increased 69%, compared to the first quarter of 2022, led by
strong growth in the Netherlands and Germany. Homeowners want
self-consumption as the region not only faces rising energy prices
but also a growing demand for home electrification driven by EVs
and natural gas shortages. We expect to introduce IQ Batteries in
more European countries during the second half of 2022.
Our strategy is to build best-in-class home
energy systems and deliver them to homeowners through our installer
and distribution partners, enabled by an installer platform. We
have completed five acquisitions in the last six quarters, one for
EV chargers and four to help create our installer platform. We
shipped more than 8,250 ClipperCreek EV chargers to U.S. customers
in the second quarter of 2022 and expect healthy growth going
forward. We are working to move production to our manufacturing
partner in Mexico, making our chargers smart and integrating the EV
chargers into our home energy management systems.
We recently acquired SolarLeadFactory LLC to
provide high-quality leads to our installers and further strengthen
our installer platform. In January 2021, we acquired Sofdesk Inc.
to provide solar design software capability and approximately 950
installers are using the Solargraf software. We acquired a business
in Noida, India in March 2021 to provide proposal and permitting
services for installers and are focused on automating these
services. In December 2021, we acquired 365 Pronto, Inc. to
simplify maintenance for installers by matching cleantech asset
owners to a local and on-demand workforce of service providers. All
four acquisitions aim to make life simpler for installers by
providing them high-quality products and services, ultimately
reducing their soft costs.
BUSINESS HIGHLIGHTS
On April 19, 2022, Enphase Energy announced that
ADT Solar™, formerly Sunpro Solar, a leading rooftop solar provider
and one of the fastest-growing residential solar-plus-storage
service providers across 22 states in the United States, is
now exclusively offering Enphase IQ8 Microinverters as part of its
comprehensive home energy solution.
On May 9, 2022, Enphase Energy announced that
Enphase IQ Batteries now officially support the most common
third-party string inverters in Belgium and Germany,
helping meet the increasing demand for energy independence in the
region. Since the 2021 launch of the IQ Battery
in Belgium and Germany, installers of
Enphase products have seen increasing deployments of Enphase
Energy Systems powered by IQ Microinverters and Enphase IQ
Batteries, as well as residential solar-only energy systems powered
by IQ7™, IQ7+™, and IQ7A™ Microinverters.
On May 23, 2022, Enphase Energy announced that
the Enphase IQ8 Microinverter system is the first in the world
to be certified by UL, a global safety science leader, to UL
1741, 3rd edition including the Supplement SB. This
certification meets the new North American safety and grid
interconnection standards for connecting solar inverters, energy
storage systems, and distributed energy resources to the grid in
compliance with IEEE 1547-2018 and IEEE 1547-1 2020.
Enphase Energy recently announced that
installers in Rhode Island, Massachusetts, Washington, New Mexico,
Texas, New York, Florida, Hawaii, Missouri, Michigan, Southern
California, and Puerto Rico have seen growing deployments of the
Enphase Energy System powered by IQ Microinverters and IQ
Batteries.
THIRD QUARTER 2022 FINANCIAL OUTLOOK
For the third quarter of 2022, Enphase Energy estimates both
GAAP and non-GAAP financial results as follows:
- Revenue to be within a range of $590 million to $630 million,
which includes shipments of 130 to 145 megawatt hours of Enphase IQ
Batteries
- GAAP gross margin to be within a range of 38.0% to 41.0%;
non-GAAP gross margin to be within a range of 39.0% to 42.0%,
excluding stock-based compensation expenses and acquisition related
amortization
- GAAP operating expenses to be within a range of
$137.0 million to $141.0 million
- Non-GAAP operating expenses to be within a range of $77.0
million to $81.0 million, excluding $60.0 million estimated for
stock-based compensation expenses and acquisition related costs and
amortization
Follow Enphase Online
- Read the Enphase blog.
- Follow @Enphase on Twitter.
- Visit us on Facebook and
LinkedIn.
- Watch Enphase videos on
YouTube.
Use of Non-GAAP Financial Measures
Enphase Energy has presented certain non-GAAP
financial measures in this press release. To view a description of
non-GAAP financial measures used and the non-GAAP reconciliation
schedule for the periods presented, click here.
Conference Call Information
Enphase Energy will host a conference call for
analysts and investors to discuss its second quarter 2022 results
and third quarter 2022 business outlook today at 4:30 p.m. Eastern
Time (1:30 p.m. Pacific Time). The call is open to the public by
dialing (833) 634-5018. A live webcast of the conference call will
also be accessible from the “Investor Relations” section of Enphase
Energy’s website at investor.enphase.com. Following the webcast, an
archived version will be available on the website for approximately
one year. In addition, an audio replay of the conference call will
be available by calling (877) 344-7529; replay access
code 9407506, beginning approximately one hour after the
call.
Forward-Looking Statements
This press release contains forward-looking
statements, including statements related to Enphase Energy’s
expectations as to its third quarter of 2022 financial outlook and
expense levels; the capabilities, advantages, features and
performance of its technology and products; its business strategies
and anticipated demand for and availability of its products and
services; market demand for residential solar and battery
deployments; and growth in deployments of Enphase Energy Systems.
These forward-looking statements are based on Enphase Energy’s
current expectations and inherently involve significant risks and
uncertainties. Enphase Energy’s actual results and the timing of
events could differ materially from those anticipated in such
forward-looking statements as a result of certain risks and
uncertainties including those risks described in more detail in its
most recent Quarterly Report on Form 10-Q for the quarter ended
March 31, 2022, its most recent Annual Report on Form 10-K for the
year ended December 31, 2021 and other documents on file with the
SEC from time to time and available on the SEC’s website at
www.sec.gov. Enphase Energy undertakes no duty or obligation to
update any forward-looking statements contained in this release as
a result of new information, future events or changes in its
expectations, except as required by law.
A copy of this press release can be found on the
investor relations page of Enphase Energy’s website at
investor.enphase.com.
About Enphase Energy, Inc.
Enphase Energy, a global energy technology
company based in Fremont, CA, is the world's leading supplier of
microinverter-based solar and battery systems that enable people to
harness the sun to make, use, save, and sell their own power—and
control it all with a smart mobile app. The company revolutionized
the solar industry with its microinverter-based technology and
builds all-in-one solar, battery, and software solutions. Enphase
has shipped more than 48 million microinverters, and over
2.5 million Enphase-based systems have been deployed in
more than 140 countries. For more information, visit
www.enphase.com.
© 2022 Enphase Energy, Inc. All rights reserved.
Enphase Energy, Enphase, the “e” logo, IQ, IQ7, IQ7+, IQ7A, IQ8,
Sunlight Backup, Sunlight Jump Start, and certain other names and
marks are trademarks of Enphase Energy, Inc. Other names are for
informational purposes and may be trademarks of their respective
owners.
Contact:
Karen SagotEnphase Energy, Inc.Investor
Relationsir@enphaseenergy.com
ENPHASE ENERGY,
INC. CONDENSED CONSOLIDATED STATEMENTS OF
OPERATIONS (In thousands, except per share
data)(Unaudited)
|
Three Months Ended |
Six Months Ended |
|
June 30,2022 |
|
March 31,2022 |
|
June 30,2021 |
|
June 30,2022 |
|
June 30,2021 |
Net revenues |
$ |
530,196 |
|
|
$ |
441,292 |
|
|
$ |
316,057 |
|
|
$ |
971,488 |
|
|
$ |
617,811 |
|
Cost of revenues |
|
311,191 |
|
|
|
264,319 |
|
|
|
188,256 |
|
|
|
575,510 |
|
|
|
367,061 |
|
Gross profit |
|
219,005 |
|
|
|
176,973 |
|
|
|
127,801 |
|
|
|
395,978 |
|
|
|
250,750 |
|
Operating expenses: |
|
|
|
|
|
|
|
|
|
Research and development |
|
39,256 |
|
|
|
35,719 |
|
|
|
22,708 |
|
|
|
74,975 |
|
|
|
44,526 |
|
Sales and marketing |
|
53,588 |
|
|
|
41,344 |
|
|
|
25,586 |
|
|
|
94,932 |
|
|
|
45,208 |
|
General and administrative |
|
32,125 |
|
|
|
38,086 |
|
|
|
20,107 |
|
|
|
70,211 |
|
|
|
40,230 |
|
Total operating expenses |
|
124,969 |
|
|
|
115,149 |
|
|
|
68,401 |
|
|
|
240,118 |
|
|
|
129,964 |
|
Income from operations |
|
94,036 |
|
|
|
61,824 |
|
|
|
59,400 |
|
|
|
155,860 |
|
|
|
120,786 |
|
Other income (expense),
net |
|
|
|
|
|
|
|
|
|
Interest income |
|
796 |
|
|
|
460 |
|
|
|
98 |
|
|
|
1,256 |
|
|
|
171 |
|
Interest expense |
|
(2,168 |
) |
|
|
(2,736 |
) |
|
|
(12,506 |
) |
|
|
(4,904 |
) |
|
|
(19,835 |
) |
Other income (expense), net |
|
(456 |
) |
|
|
(2,141 |
) |
|
|
(633 |
) |
|
|
(2,597 |
) |
|
|
(60 |
) |
Loss on partial settlement of convertible notes (1) |
|
— |
|
|
|
— |
|
|
|
(13 |
) |
|
|
— |
|
|
|
(56,382 |
) |
Total other expense, net |
|
(1,828 |
) |
|
|
(4,417 |
) |
|
|
(13,054 |
) |
|
|
(6,245 |
) |
|
|
(76,106 |
) |
Income before income
taxes |
|
92,208 |
|
|
|
57,407 |
|
|
|
46,346 |
|
|
|
149,615 |
|
|
|
44,680 |
|
Income tax benefit
(provision) |
|
(15,232 |
) |
|
|
(5,586 |
) |
|
|
(6,995 |
) |
|
|
(20,818 |
) |
|
|
26,369 |
|
Net income |
$ |
76,976 |
|
|
$ |
51,821 |
|
|
$ |
39,351 |
|
|
$ |
128,797 |
|
|
$ |
71,049 |
|
Net income per share: |
|
|
|
|
|
|
|
|
|
Basic |
$ |
0.57 |
|
|
$ |
0.39 |
|
|
$ |
0.29 |
|
|
$ |
0.96 |
|
|
$ |
0.53 |
|
Diluted |
$ |
0.54 |
|
|
$ |
0.37 |
|
|
$ |
0.28 |
|
|
$ |
0.91 |
|
|
$ |
0.49 |
|
Shares used in per share
calculation: |
|
|
|
|
|
|
|
|
|
Basic |
|
135,196 |
|
|
|
134,327 |
|
|
|
135,094 |
|
|
|
134,768 |
|
|
|
133,209 |
|
Diluted |
|
143,725 |
|
|
|
144,617 |
|
|
|
141,533 |
|
|
|
143,602 |
|
|
|
144,022 |
|
(1) |
Loss on
partial settlement of convertible notes of less than $0.1 million
for the three months ended June 30, 2021, primarily relates to the
non-cash loss on partial settlement of $0.1 million aggregate
principal amount of the Notes due 2025. Loss on partial settlement
of convertible notes of $56.4 million for the six months ended June
30, 2021, primarily relates to the $9.5 million non-cash loss on
partial settlement of $87.1 million aggregate principal amount of
the Notes due 2024, $9.5 million non-cash loss on partial
settlement of $217.8 million aggregate principal amount of the
Notes due 2025 and $37.5 million non-cash inducement loss incurred
on repurchase of Notes due 2025. |
ENPHASE ENERGY,
INC. CONDENSED CONSOLIDATED BALANCE
SHEETS (In
thousands) (Unaudited)
|
June 30, 2022 |
|
December 31, 2021 |
ASSETS |
|
|
|
Current assets: |
|
|
|
Cash and cash equivalents |
$ |
495,473 |
|
$ |
119,316 |
Marketable securities |
|
752,328 |
|
|
897,335 |
Accounts receivable, net |
|
312,451 |
|
|
333,626 |
Inventory |
|
130,266 |
|
|
74,400 |
Prepaid expenses and other assets |
|
45,474 |
|
|
37,784 |
Total current assets |
|
1,735,992 |
|
|
1,462,461 |
Property and equipment,
net |
|
86,778 |
|
|
82,167 |
Operating lease, right of use
asset, net |
|
16,987 |
|
|
14,420 |
Intangible assets, net |
|
96,887 |
|
|
97,758 |
Goodwill |
|
197,004 |
|
|
181,254 |
Other assets |
|
129,153 |
|
|
118,726 |
Deferred tax assets, net |
|
174,307 |
|
|
122,470 |
Total assets |
$ |
2,437,108 |
|
$ |
2,079,256 |
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
Current liabilities: |
|
|
|
Accounts payable |
$ |
90,398 |
|
$ |
113,767 |
Accrued liabilities |
|
197,919 |
|
|
157,912 |
Deferred revenues, current |
|
74,067 |
|
|
62,670 |
Warranty obligations, current |
|
29,197 |
|
|
19,395 |
Debt, current |
|
88,429 |
|
|
86,052 |
Total current liabilities |
|
480,010 |
|
|
439,796 |
Long-term liabilities: |
|
|
|
Deferred revenues, noncurrent |
|
217,095 |
|
|
187,186 |
Warranty obligations, noncurrent |
|
67,354 |
|
|
53,982 |
Other liabilities |
|
23,864 |
|
|
16,530 |
Debt, noncurrent |
|
1,197,786 |
|
|
951,594 |
Total liabilities |
|
1,986,109 |
|
|
1,649,088 |
Total stockholders’ equity |
|
450,999 |
|
|
430,168 |
Total liabilities and
stockholders’ equity |
$ |
2,437,108 |
|
$ |
2,079,256 |
ENPHASE ENERGY,
INC. CONDENSED CONSOLIDATED STATEMENTS OF
CASH FLOWS (In
thousands) (Unaudited)
|
Three Months Ended |
|
Six Months Ended |
|
June 30, 2022 |
|
March 31, 2022 |
|
June 30, 2021 |
|
June 30, 2022 |
|
June 30, 2021 |
Cash flows from
operating activities: |
|
|
|
|
|
|
|
|
|
Net income |
$ |
76,976 |
|
|
$ |
51,821 |
|
|
$ |
39,351 |
|
|
$ |
128,797 |
|
|
$ |
71,049 |
|
Adjustments to reconcile net income to net cash provided by
operating activities: |
|
|
|
|
|
|
|
|
|
Depreciation and amortization |
|
15,247 |
|
|
|
15,558 |
|
|
|
7,596 |
|
|
|
30,805 |
|
|
|
13,154 |
|
Provision for doubtful accounts |
|
(16 |
) |
|
|
147 |
|
|
|
257 |
|
|
|
131 |
|
|
|
271 |
|
Asset impairment |
|
1,200 |
|
|
|
— |
|
|
|
— |
|
|
|
1,200 |
|
|
|
— |
|
Loss on partial settlement of convertibles notes |
|
— |
|
|
|
— |
|
|
|
13 |
|
|
|
— |
|
|
|
56,382 |
|
Deemed repayment of convertible notes attributable to accreted debt
discount |
|
— |
|
|
|
— |
|
|
|
(6 |
) |
|
|
— |
|
|
|
(15,585 |
) |
Non-cash interest expense |
|
2,046 |
|
|
|
1,979 |
|
|
|
12,307 |
|
|
|
4,025 |
|
|
|
19,463 |
|
Change in fair value of debt securities |
|
(987 |
) |
|
|
1,116 |
|
|
|
(932 |
) |
|
|
129 |
|
|
|
(2,369 |
) |
Stock-based compensation |
|
53,064 |
|
|
|
47,797 |
|
|
|
15,312 |
|
|
|
100,861 |
|
|
|
30,156 |
|
Deferred income taxes |
|
12,452 |
|
|
|
3,165 |
|
|
|
5,240 |
|
|
|
15,617 |
|
|
|
(30,127 |
) |
Changes in operating assets and liabilities: |
|
|
|
|
|
|
|
|
|
Accounts receivable |
|
51,770 |
|
|
|
(24,224 |
) |
|
|
(44,812 |
) |
|
|
27,546 |
|
|
|
(98,531 |
) |
Inventory |
|
(33,830 |
) |
|
|
(22,036 |
) |
|
|
(2,880 |
) |
|
|
(55,866 |
) |
|
|
4,008 |
|
Prepaid expenses and other assets |
|
(18,310 |
) |
|
|
(3,042 |
) |
|
|
(10,154 |
) |
|
|
(21,352 |
) |
|
|
(15,194 |
) |
Accounts payable, accrued and other liabilities |
|
12,033 |
|
|
|
(1,805 |
) |
|
|
10,514 |
|
|
|
10,228 |
|
|
|
46,890 |
|
Warranty obligations |
|
12,972 |
|
|
|
9,906 |
|
|
|
5,385 |
|
|
|
22,878 |
|
|
|
14,025 |
|
Deferred revenues |
|
16,033 |
|
|
|
22,061 |
|
|
|
28,469 |
|
|
|
38,094 |
|
|
|
47,909 |
|
Net cash provided by operating activities |
|
200,650 |
|
|
|
102,443 |
|
|
|
65,660 |
|
|
|
303,093 |
|
|
|
141,501 |
|
Cash flows from
investing activities: |
|
|
|
|
|
|
|
|
|
Purchases of property and equipment |
|
(8,691 |
) |
|
|
(12,375 |
) |
|
|
(16,428 |
) |
|
|
(21,066 |
) |
|
|
(26,368 |
) |
Purchases of marketable securities |
|
(60,061 |
) |
|
|
— |
|
|
|
— |
|
|
|
(60,061 |
) |
|
|
— |
|
Maturities of marketable securities |
|
116,298 |
|
|
|
76,735 |
|
|
|
— |
|
|
|
193,033 |
|
|
|
— |
|
Investments in private companies |
|
— |
|
|
|
— |
|
|
|
(20,000 |
) |
|
|
— |
|
|
|
(45,000 |
) |
Business acquisitions, net of cash acquired |
|
(3,055 |
) |
|
|
(24,625 |
) |
|
|
— |
|
|
|
(27,680 |
) |
|
|
(55,239 |
) |
Net cash provided by (used in) investing activities |
|
44,491 |
|
|
|
39,735 |
|
|
|
(36,428 |
) |
|
|
84,226 |
|
|
|
(126,607 |
) |
Cash flows from
financing activities: |
|
|
|
|
|
|
|
|
|
Issuance of convertible notes, net of issuance costs |
|
— |
|
|
|
— |
|
|
|
(949 |
) |
|
|
— |
|
|
|
1,188,439 |
|
Purchase of convertible note hedges |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(286,235 |
) |
Sale of warrants |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
220,800 |
|
Principal payments and financing fees on debt |
|
— |
|
|
|
— |
|
|
|
(344 |
) |
|
|
— |
|
|
|
(1,422 |
) |
Partial repurchase of convertible notes |
|
— |
|
|
|
— |
|
|
|
(79 |
) |
|
|
— |
|
|
|
(289,312 |
) |
Repurchase of common stock |
|
— |
|
|
|
— |
|
|
|
(200,000 |
) |
|
|
— |
|
|
|
(200,000 |
) |
Proceeds from exercise of equity awards and employee stock purchase
plan |
|
4,183 |
|
|
|
404 |
|
|
|
3,428 |
|
|
|
4,587 |
|
|
|
3,642 |
|
Payment of withholding taxes related to net share settlement of
equity awards |
|
(5,463 |
) |
|
|
(9,344 |
) |
|
|
(7,813 |
) |
|
|
(14,807 |
) |
|
|
(16,998 |
) |
Net cash provided by (used in) financing activities |
|
(1,280 |
) |
|
|
(8,940 |
) |
|
|
(205,757 |
) |
|
|
(10,220 |
) |
|
|
618,914 |
|
Effect of exchange rate changes on cash and cash equivalents |
|
(238 |
) |
|
|
(704 |
) |
|
|
(224 |
) |
|
|
(942 |
) |
|
|
(926 |
) |
Net increase (decrease) in
cash and cash equivalents |
|
243,623 |
|
|
|
132,534 |
|
|
|
(176,749 |
) |
|
|
376,157 |
|
|
|
632,882 |
|
Cash and cash
equivalents—Beginning of period |
|
251,850 |
|
|
|
119,316 |
|
|
|
1,489,010 |
|
|
|
119,316 |
|
|
|
679,379 |
|
Cash and cash equivalents —End
of period |
$ |
495,473 |
|
|
$ |
251,850 |
|
|
$ |
1,312,261 |
|
|
$ |
495,473 |
|
|
$ |
1,312,261 |
|
ENPHASE ENERGY,
INC.RECONCILIATION OF NON-GAAP FINANCIAL
MEASURES(In thousands, except per share data and
percentages)(Unaudited)
|
Three Months Ended |
|
Six Months Ended |
|
June 30, 2022 |
|
March 31, 2022 |
|
June 30, 2021 |
|
June 30, 2022 |
|
June 30, 2021 |
Gross profit (GAAP) |
$ |
219,005 |
|
|
$ |
176,973 |
|
|
$ |
127,801 |
|
|
$ |
395,978 |
|
|
$ |
250,750 |
|
Stock-based compensation |
|
3,131 |
|
|
|
2,507 |
|
|
|
1,060 |
|
|
|
5,638 |
|
|
|
2,042 |
|
Acquisition related amortization |
|
1,445 |
|
|
|
1,299 |
|
|
|
— |
|
|
|
2,744 |
|
|
|
— |
|
Gross profit
(Non-GAAP) |
$ |
223,581 |
|
|
$ |
180,779 |
|
|
$ |
128,861 |
|
|
$ |
404,360 |
|
|
$ |
252,792 |
|
|
|
|
|
|
|
|
|
|
|
Gross margin
(GAAP) |
|
41.3 |
% |
|
|
40.1 |
% |
|
|
40.4 |
% |
|
|
40.8 |
% |
|
|
40.6 |
% |
Stock-based compensation |
|
0.6 |
% |
|
|
0.6 |
% |
|
|
0.4 |
% |
|
|
0.5 |
% |
|
|
0.3 |
% |
Acquisition related amortization |
|
0.3 |
% |
|
|
0.3 |
% |
|
|
— |
% |
|
|
0.3 |
% |
|
|
— |
% |
Gross margin
(Non-GAAP) |
|
42.2 |
% |
|
|
41.0 |
% |
|
|
40.8 |
% |
|
|
41.6 |
% |
|
|
40.9 |
% |
|
|
|
|
|
|
|
|
|
|
Operating expenses
(GAAP) |
$ |
124,969 |
|
|
$ |
115,149 |
|
|
$ |
68,401 |
|
|
$ |
240,118 |
|
|
$ |
129,964 |
|
Stock-based compensation (1) |
|
(49,933 |
) |
|
|
(45,290 |
) |
|
|
(14,252 |
) |
|
|
(95,223 |
) |
|
|
(28,114 |
) |
Acquisition related expenses and amortization |
|
(3,867 |
) |
|
|
(3,609 |
) |
|
|
(2,453 |
) |
|
|
(7,476 |
) |
|
|
(6,455 |
) |
Operating expenses
(Non-GAAP) |
$ |
71,169 |
|
|
$ |
66,250 |
|
|
$ |
51,696 |
|
|
$ |
137,419 |
|
|
$ |
95,395 |
|
|
|
|
|
|
|
|
|
|
|
(1)Includes stock-based
compensation as follows: |
|
|
|
|
|
|
|
|
|
Research and development |
$ |
16,266 |
|
|
$ |
13,729 |
|
|
$ |
5,467 |
|
|
$ |
29,995 |
|
|
$ |
11,216 |
|
Sales and marketing |
|
22,176 |
|
|
|
13,057 |
|
|
|
5,335 |
|
|
|
35,233 |
|
|
|
8,872 |
|
General and administrative |
|
11,491 |
|
|
|
18,504 |
|
|
|
3,450 |
|
|
|
29,995 |
|
|
|
8,026 |
|
Total |
$ |
49,933 |
|
|
$ |
45,290 |
|
|
$ |
14,252 |
|
|
$ |
95,223 |
|
|
$ |
28,114 |
|
|
|
|
|
|
|
|
|
|
|
Income from operations
(GAAP) |
$ |
94,036 |
|
|
$ |
61,824 |
|
|
$ |
59,400 |
|
|
$ |
155,860 |
|
|
$ |
120,786 |
|
Stock-based compensation |
|
53,064 |
|
|
|
47,797 |
|
|
|
15,312 |
|
|
|
100,861 |
|
|
|
30,156 |
|
Acquisition related expenses and amortization |
|
5,312 |
|
|
|
4,908 |
|
|
|
2,453 |
|
|
|
10,220 |
|
|
|
6,455 |
|
Income from operations
(Non-GAAP) |
$ |
152,412 |
|
|
$ |
114,529 |
|
|
$ |
77,165 |
|
|
$ |
266,941 |
|
|
$ |
157,397 |
|
|
|
|
|
|
|
|
|
|
|
Net income
(GAAP) |
$ |
76,976 |
|
|
$ |
51,821 |
|
|
$ |
39,351 |
|
|
$ |
128,797 |
|
|
$ |
71,049 |
|
Stock-based compensation |
|
53,064 |
|
|
|
47,797 |
|
|
|
15,312 |
|
|
|
100,861 |
|
|
|
30,156 |
|
Acquisition related expenses and amortization |
|
5,312 |
|
|
|
4,908 |
|
|
|
2,453 |
|
|
|
10,220 |
|
|
|
6,455 |
|
Non-cash interest expense |
|
2,048 |
|
|
|
1,979 |
|
|
|
12,307 |
|
|
|
4,027 |
|
|
|
19,463 |
|
Loss on partial settlement of convertible notes |
|
— |
|
|
|
— |
|
|
|
13 |
|
|
|
— |
|
|
|
56,382 |
|
Non-GAAP income tax adjustment |
|
12,452 |
|
|
|
3,165 |
|
|
|
5,240 |
|
|
|
15,617 |
|
|
|
(30,127 |
) |
Net income
(Non-GAAP) |
$ |
149,852 |
|
|
$ |
109,670 |
|
|
$ |
74,676 |
|
|
$ |
259,522 |
|
|
$ |
153,378 |
|
|
|
|
|
|
|
|
|
|
|
Net income per share,
basic (GAAP) |
$ |
0.57 |
|
|
$ |
0.39 |
|
|
$ |
0.29 |
|
|
$ |
0.96 |
|
|
$ |
0.53 |
|
Stock-based compensation |
|
0.39 |
|
|
|
0.36 |
|
|
|
0.11 |
|
|
|
0.75 |
|
|
|
0.23 |
|
Acquisition related expenses and amortization |
|
0.04 |
|
|
|
0.04 |
|
|
|
0.02 |
|
|
|
0.08 |
|
|
|
0.05 |
|
Non-cash interest expense |
|
0.02 |
|
|
|
0.01 |
|
|
|
0.09 |
|
|
|
0.03 |
|
|
|
0.15 |
|
Loss on partial settlement of convertible notes |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
0.42 |
|
Non-GAAP income tax adjustment |
|
0.09 |
|
|
|
0.02 |
|
|
|
0.04 |
|
|
|
0.11 |
|
|
|
(0.23 |
) |
Net income per share,
basic (Non-GAAP) |
$ |
1.11 |
|
|
$ |
0.82 |
|
|
$ |
0.55 |
|
|
$ |
1.93 |
|
|
$ |
1.15 |
|
|
|
|
|
|
|
|
|
|
|
Shares used in basic per share calculation GAAP and Non-GAAP |
|
135,196 |
|
|
|
134,327 |
|
|
|
135,094 |
|
|
|
134,768 |
|
|
|
133,209 |
|
|
|
|
|
|
|
|
|
|
|
Net income per share,
diluted (GAAP) |
$ |
0.54 |
|
|
$ |
0.37 |
|
|
$ |
0.28 |
|
|
$ |
0.91 |
|
|
$ |
0.49 |
|
Stock-based compensation |
|
0.38 |
|
|
|
0.34 |
|
|
|
0.11 |
|
|
|
0.73 |
|
|
|
0.22 |
|
Acquisition related expenses and amortization |
|
0.04 |
|
|
|
0.04 |
|
|
|
0.02 |
|
|
|
0.08 |
|
|
|
0.05 |
|
Non-cash interest expense |
|
0.02 |
|
|
|
0.02 |
|
|
|
0.09 |
|
|
|
0.03 |
|
|
|
0.14 |
|
Loss on partial settlement of convertible notes |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
0.40 |
|
Non-GAAP income tax adjustment |
|
0.09 |
|
|
|
0.02 |
|
|
|
0.03 |
|
|
|
0.11 |
|
|
|
(0.21 |
) |
Net income per share,
diluted (Non-GAAP) (2) |
$ |
1.07 |
|
|
$ |
0.79 |
|
|
$ |
0.53 |
|
|
$ |
1.86 |
|
|
$ |
1.09 |
|
|
|
|
|
|
|
|
|
|
|
Shares used in diluted per share calculation GAAP |
|
143,725 |
|
|
|
144,617 |
|
|
|
141,533 |
|
|
|
143,602 |
|
|
|
144,022 |
|
Shares used in diluted per share calculation Non-GAAP (3) |
|
139,650 |
|
|
|
139,289 |
|
|
|
140,931 |
|
|
|
139,527 |
|
|
|
141,379 |
|
|
|
|
|
|
|
|
|
|
|
Net cash provided by
operating activities (GAAP) |
$ |
200,650 |
|
|
$ |
102,443 |
|
|
$ |
65,660 |
|
|
$ |
303,093 |
|
|
$ |
141,501 |
|
Purchases of property and equipment |
|
(8,691 |
) |
|
|
(12,375 |
) |
|
|
(16,428 |
) |
|
|
(21,066 |
) |
|
|
(26,368 |
) |
Deemed repayment of convertible notes due 2024 and notes due 2025
attributable to accreted debt discount |
|
— |
|
|
|
— |
|
|
|
6 |
|
|
|
— |
|
|
|
15,585 |
|
Free cash flow
(Non-GAAP) |
$ |
191,959 |
|
|
$ |
90,068 |
|
|
$ |
49,238 |
|
|
$ |
282,027 |
|
|
$ |
130,718 |
|
(2) |
Calculation of non-GAAP diluted net income per share for the three
months ended June 30, 2022, March 31, 2022 and
June 30, 2021, as well as the six months ended June 30, 2022
and 2021, excludes convertible notes due 2023 interest expense, net
of tax of less than $0.1 million in each period from non-GAAP
net income. |
(3) |
Effect of
dilutive in-the-money portion of convertible senior notes and
warrants are included in the GAAP weighted-average diluted shares
in periods where the Company has GAAP net income. The Company
excluded the in-the-money portion of convertible notes due 2024
totaling 45 thousand shares and 1,506 thousand shares in the three
months and six months ended June 30, 2021 from non-GAAP
weighted-average diluted shares as the Company entered into
convertible note hedge transactions that reduce potential dilution
to the Company’s common stock upon any conversion of the notes due
2024. The Company excluded the in-the-money portion of convertible
notes due 2025 totaling 557 thousand shares in the three months
ended June 30, 2021 and 1,137 thousand shares in the six
months ended June 30, 2021 from non-GAAP weighted-average diluted
shares as the Company entered into convertible note hedge
transactions that reduce potential dilution to the Company’s common
stock upon any conversion of the notes due 2025. |
Enphase Energy (NASDAQ:ENPH)
Historical Stock Chart
From Jun 2024 to Jul 2024
Enphase Energy (NASDAQ:ENPH)
Historical Stock Chart
From Jul 2023 to Jul 2024