Enphase(US:ENPH)2025-02-08 00:06Financial Performance - Net revenues for the year ended December 31, 2024, were $1,330,383, a decrease of 42% compared to $2,290,786 in 2023[384]. - Gross profit for 2024 was $629,138, down from $1,058,388 in 2023, reflecting a gross margin decline[384]. - Net income for 2024 was $102,658, a significant drop from $438,936 in 2023, resulting in a diluted net income per share of $0.75[384]. - Comprehensive income for 2024 was $98,294, down 78.1% from $447,830 in 2023[388]. - Cash provided by operating activities in 2024 was $513,693, a decrease of 26.2% from $696,780 in 2023[395]. - Total revenue for the year ended December 31, 2024, was $1,330.4 million, a decrease of 41.9% from $2,290.8 million in 2023[471]. Cash and Liquidity - Enphase Energy reported cash, cash equivalents, restricted cash, and marketable securities of $1,717.6 million as of December 31, 2024, compared to $1,695.0 million in 2023, indicating a slight increase[355]. - Cash and cash equivalents rose to $369,110 in 2024 from $288,748 in 2023, indicating improved liquidity[383]. - Cash and cash equivalents at the end of 2024 were $464,116, up from $288,748 at the end of 2023[395]. - Total cash, cash equivalents, and restricted cash increased to $464.1 million in 2024 from $288.7 million in 2023, reflecting a growth of 60.7%[396]. - The company's cash equivalents, restricted cash, and marketable securities totaled $1,539,890,000 as of December 31, 2024, with money market funds comprising $191,410,000[500]. Assets and Liabilities - Total current assets as of December 31, 2024, were $2,327,084, down from $2,443,518 in 2023[383]. - Total liabilities increased to $2,416,660 in 2024 from $2,399,388 in 2023, with long-term debt at $1,201,089[383]. - Accounts receivables as of December 31, 2024, were $223.7 million, a decline of 50.1% compared to $446.0 million in 2023[472]. - Total contract liabilities increased to $579.2 million in 2024 from $487.5 million in 2023, with $110.3 million representing cash prepayments for products to be delivered in 2025[477]. - Total inventory decreased to $165.0 million in 2024 from $213.6 million in 2023, with raw materials at $38.7 million and finished goods at $126.3 million[479]. Research and Development - Research and development expenses decreased to $201,315 in 2024 from $227,336 in 2023, indicating a reduction in investment in new technologies[384]. - The Company expenses research and development costs as incurred, which primarily consist of expensed equipment for product development, personnel costs, and other professional costs[457]. Warranty and Impairment - The company's warranty obligations increased to $192,889 in 2024 from $189,087 in 2023, reflecting ongoing commitments to product reliability[383]. - The warranty term for microinverter units is typically 15 years for first and second generation units and up to 25 years for subsequent generation units[443]. - The Company recorded asset impairment charges of $2.3 million, $5.7 million, and zero for the years ended December 31, 2024, 2023, and 2022, respectively, related to property and equipment[432]. - The Company recorded intangible asset impairment charges of $3.5 million, $3.8 million, and zero for the years ended December 31, 2024, 2023, and 2022, respectively, associated with developed technology and customer relationship intangible assets[441]. - The company recorded a $3.5 million impairment charge for developed technology and customer relationships for the year ended December 31, 2024, due to a decline in fair value[499]. Acquisitions - The acquisition of GreenCom Networks AG was completed for approximately $34.9 million, enhancing the company's engineering capabilities in Europe[484]. - The acquisition of GreenCom was completed for approximately $34.9 million, with net assets acquired valued at $34,896,000, including $16,536,000 in goodwill attributed to expected synergies in solar offerings[485][491]. - The fair value of identifiable intangible assets from the GreenCom acquisition totaled $13,900,000, with developed technology valued at $8,000,000 and customer relationships at $5,900,000, both amortized over 5 years[488]. - The acquisition of SolarLeadFactory was completed for approximately $26.1 million, with net assets acquired valued at $26,051,000, including $12,612,000 in goodwill expected to be deductible for U.S. federal income tax purposes over 15 years[490][491]. - The fair value of identifiable intangible assets from the SolarLeadFactory acquisition totaled $11,200,000, with developed technology valued at $3,600,000 and customer relationships at $7,600,000, both amortized over 5 years[494]. Foreign Currency and Risk Management - Sales denominated in euros accounted for 21% of net revenues in 2024, down from 28% in 2023 and 17% in 2022, reflecting fluctuations in foreign currency exposure[351]. - The company anticipates that a hypothetical 10% adverse change in foreign exchange rates would not materially impact its financial condition or results of operations[352]. - The company has not engaged in any foreign currency hedging transactions, indicating a straightforward approach to managing currency risk[352]. - The company reported a foreign currency translation adjustment of $(4,715) in 2024, compared to a gain of $1,190 in 2023[392]. Operational Risks - Manufacturing problems could lead to delays in product shipments, adversely affecting revenue and competitive position[19]. - Enphase Energy's expectations regarding demand for its products are critical for future financial performance, with potential impacts from macroeconomic events and supply chain disruptions[16]. - The company faces risks related to the reduction or expiration of government subsidies for solar energy, which could negatively affect demand for its products[19]. Stockholder Equity and Repurchase - The company repurchased $391,364 worth of common stock in 2024, slightly down from $409,998 in 2023[395]. - Total stockholders' equity at the end of 2023 was $983,624, an increase from $825,573 at the end of 2022[391].