Enphase Energy, a microinverter-based solar and storage systems supplier, recorded a net income of $141.85 million during the third quarter (Q3) of 2023, a year-over-year (YoY) decrease of 19 % from $175.51 million.
During the quarter, the revenue was reported at $551.1 million, a YoY decrease of 13%, primarily attributed to adverse macroeconomic conditions.
Specifically, revenue within the U.S. decreased approximately 16% in Q3 2023 compared to Q2 2023.
In Europe, revenue decreased by approximately 34% during the same period due to excess inventory held by distribution partners and softened demand in key markets, namely the Netherlands, France, and Germany.
Operating expenses totaled $99 million in Q3 2023, slightly up from $98.2 million in the previous quarter.
Enphase’s IQ8 microinverters accounted for approximately 86% of all microinverter shipments during the quarter. The company expanded its market presence by introducing IQ8 Microinverters in various countries, including the United Kingdom, Brazil, Sweden, Denmark, South Africa, India, and Greece, extending their global footprint to 15 countries.
In the same period, the company’s IQ Battery shipments increased to 86.2 MWh, up from 82.3 MWh in Q2 2023. The company expanded its presence by introducing IQ Batteries in Sweden, Denmark, and Greece.
During the quarter, the IQ Battery 5P was launched in the United Kingdom and is now being shipped to Australia, the United States, Puerto Rico, and the United Kingdom. Furthermore, more than 4,100 installers worldwide have obtained certification to install IQ Batteries.
Microinverter shipments began from the company’s third U.S. contract manufacturer, Salcomp, in Arlington, Texas.
Approximately 531,000 microinverters were shipped to customers in Q3 2023 from the company’s three contract manufacturers, including Flex in South Carolina, Foxconn in Wisconsin, and Salcomp in Texas.
In August, the company introduced a comprehensive solution to maximize the return on investment for homeowners under California’s new net billing tariff, called NEM 3.0.
September witnessed Enphase’s new system launch, which features its new IQ Battery 5P and IQ8 Microinverters, focusing on the United Kingdom market.
Enphase Energy entered the Greek solar market in October by introducing IQ8 microinverters and IQ batteries, marking its expansion into new territories. Additionally, the company made an EV charger available in the United States and Canada to boast smart control and monitoring capabilities.
Shipments of its IQ8 microinverters also commenced in India to support high-powered solar modules, while South Africa saw Enphase’s entry with IQ8 microinverters for grid-tied residential and small commercial applications.
Enphase posted a 183% YoY surge in profit at $147 million for Q1 of 2023, mainly driven by increased microinverter and battery shipments to new regions.
Previously, the company said it planned to add manufacturing capacity in America to address the demand and build on the incentives related to the Inflation Reduction Act.
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