Enphase(US:ENPH)2024-04-23 20:28Revenue and Sales Performance - Net revenues for the three months ended March 31, 2024, decreased by $462.7 million, or 64%, compared to the same period in 2023, primarily due to a 71% decrease in microinverter units shipped[144]. - Approximately 1.4 million microinverter units were sold in Q1 2024, down from approximately 4.8 million units in Q1 2023, and IQ Batteries shipped decreased from 102.4 MWh to 75.5 MWh[145]. - The demand environment for products experienced a slowdown beginning in Q2 2023, leading to elevated inventory levels with distributors and installers[136]. - The company expects continued adverse effects on revenue in 2024 due to higher interest rates and changes in net energy metering policies in key markets[136]. Profitability and Expenses - Gross profit for Q1 2024 was $115.5 million, a decrease of $210.9 million, or 65%, from $326.4 million in Q1 2023, with a gross margin of 43.9%[146]. - Research and development expenses decreased by $2.9 million, or 5%, in Q1 2024, totaling $54.2 million, primarily due to restructuring actions[149]. - Sales and marketing expenses for Q1 2024 were $53.3 million, down $11.3 million, or 18%, from $64.6 million in Q1 2023[151]. - General and administrative expenses decreased by $1.1 million, or 3%, in Q1 2024 compared to Q1 2023, mainly from lower facility and equipment costs[154]. - Restructuring and asset impairment charges increased by $1.2 million, or 175%, in Q1 2024 compared to Q1 2023, reflecting a new restructuring plan[156]. Financial Position and Cash Flow - Cash, cash equivalents, and marketable securities decreased by $148.8 million, or 8%, to $1.63 billion in Q1 2024 compared to Q1 2023[165]. - Net cash provided by operating activities decreased by $197.0 million to $49.2 million in Q1 2024, primarily due to lower revenue[171]. - Net cash provided by investing activities was $17.7 million in Q1 2024, compared to a net cash used of $363.5 million in Q1 2023[172]. - The company repurchased 332,735 shares for an aggregate amount of $42.0 million under its share repurchase program in Q1 2024[168]. - Total debt increased by $3.5 million, or 0.3%, to $1.3 billion in Q1 2024 compared to Q1 2023, primarily due to accretion of debt discount[166]. Interest and Taxation - Interest income rose to $19.7 million in Q1 2024, up 51% from $13.0 million in Q1 2023, primarily due to increased interest rates[158]. - The income tax provision decreased by $27.5 million, or 86%, to $4.6 million in Q1 2024 from $32.1 million in Q1 2023, due to lower profitability[162]. Product and Market Information - The average selling price (ASP) for microinverters increased due to a favorable product mix, with more IQ8 microinverters sold compared to IQ7 microinverters[145]. - The company shipped approximately 75 million microinverters and deployed over 4.1 million residential and commercial systems in more than 150 countries as of March 31, 2024[132]. - The Enphase IQ Battery storage systems have usable capacities of 10.1 kWh and 3.4 kWh for the U.S. market, and 10.5 kWh and 3.5 kWh for Europe and other international markets[140].