Microinverter-maker Enphase Energy Earns $351.5 M Revenue in Q3FY21

California-based supplier of microinverter-based solar and battery systems Enphase Energy has released its financial results for the third quarter of 2021, reporting quarterly revenue of $351.5 million, along with 40.8% for non-GAAP gross margin.

The company shipped approximately 2,599,575 microinverters, or 913 megawatts DC, and 65 megawatt hours of Enphase Storage systems during this period. Strong demand for our microinverter systems continued in the third quarter of 2021, while shipments of our Enphase Storage systems increased approximately 51%, compared to the second quarter of 2021, said the firm.

In a conference call with investors and analysts, Enphase Chief Executive Officer, Badri Kothandaraman said, “Since the company’s inception, we have invested in custom application specific integrated chips for our micro inverters and today we see a big pay off with the software defined micro-inverts smart enough to form a microgrid. Many home owners often assume that solar systems will function if the sun is shining, even during a power outage. This has unfortunately been true, until today.”

“Now with IQ8, homeowners can realise the true promise of solar to make and use their own power,” he said. Four days ago Enphase launched IQ8— “the industry’s first microgrid-forming microinverter.” “Unlike competing devices, IQ8 can form a microgrid during power outages using sunlight, providing back up power even without a battery,” stated Kothandaraman.

Enphase’s financial highlights for the third quarter of 2021 are listed below:

• Record revenue of $351.5 million
• GAAP gross margin of 39.9%; non-GAAP gross margin of 40.8%
• GAAP operating income of $37.4 million; non-GAAP operating income of $85.9 million
• GAAP net income of $21.8 million, non-GAAP net income of $84.2 million
• GAAP diluted earnings per share of $0.15; non-GAAP diluted earnings per share of $0.60
• Cash flow from operations of $113.4 million
• Ending cash, cash equivalents and marketable securities balance of $1.4 billion

Some business highlights are as follows:

• In August, the company renewed its partnership with Grid Alternatives, a national nonprofit providing access to clean, affordable, renewable energy, transportation, and jobs to economic and environmental justice communities.
• In September, Enphase began shipping its IQ7+ microinverters for residential and small commercial installers across Brazil starting in Oct. 2021.
• In October, the company started shipping its Encharge™ battery storage system to customers in Belgium, further expanding the product’s availability in the European solar market.

For the fourth quarter of 2021, Enphase Energy estimates both GAAP and non-GAAP financial results as follows:

• Revenue to be within a range of $390 million to $410 million, which includes shipments of 90 to 100 megawatt hours of Enphase Storage systems.
• GAAP gross margin to be within a range of 37.0% to 40.0%; non-GAAP gross margin to be within a range of 38.0% to 41.0%, excluding stock-based compensation expenses.
• GAAP operating expenses to be within a range of $119.0 million to $122.0 million, including $52.0 million estimated for stock-based compensation expenses and acquisition related costs and amortization.
• Non-GAAP operating expenses to be within a range of $67.0 million to $70.0 million, excluding $52.0 million estimated for stock-based compensation expenses and acquisition related costs and amortization. The non-GAAP estimates include
• increased investments in new products, software, and marketing, and a $3.6 million accrual for post combination expenses from prior acquisitions.