Supplemental Operating Performance Information

October 26, 2023

Enphase Energy, Inc. Q3'23 Supplemental Information

All $ figures in millions, except per share; other metrics specified

Operating Metrics & Revenue Detail

Metric

Q3'22

Q4'22

Q1'23

Q2'23

Q3'23

Financial Outlook

Q4'23

IQ Microinverter Shipments

Units, k

4,343

4,874

4,831

5,198

3,905

GAAP

IQ Microinverter Shipments

MW (DC)

1,709

1,937

1,957

2,121

1,586

Net Revenues

$300.0 - $350.0

IQ Battery Shipments

MWh

133.6

122.1

102.4

82.3

86.2

Storage Shipments (MWh)

80 - 100

Net Revenues

$

634.7

$

724.7

$

726.0

$

711.1

$

551.1

Gross Margin after net IRA benefit

46.0% - 49.0%

Gross Margin before net IRA benefit

38.0% - 41.0%

Net Revenues by Geography

Operating Expenses

$142.0 - $146.0

United States

$

451.8

$

518.0

$

473.0

$

417.6

$

350.5

International

$

182.9

$

206.7

$

253.0

$

293.5

$

200.6

Non-GAAP

Net Revenues

$300.0 - $350.0

Supplementary Income Statement Information

Q3'22

Q4'22

Q1'23

Q2'23

Q3'23

Storage Shipments (MWh)

80 - 100

Gross Profit (GAAP)

$

267.9

$

310.7

$

326.4

$

323.3

$

262.0

Gross Margin after net IRA benefit

48.0% - 51.0%

Stock-based compensation

3.2

4.3

3.7

3.4

2.7

Gross Margin before net IRA benefit

40.0% - 43.0%

Acquisition related amortization

1.4

2.1

1.8

1.9

1.9

Operating Expenses

$85.0 - $89.0

Gross Profit (Non-GAAP)

$

272.5

$

317.1

$

331.9

$

328.6

$

266.6

Gross Margin (GAAP)

42.2 %

42.9 %

45.0 %

45.5 %

47.5 %

Stock-based compensation

0.5 %

0.6 %

0.5 %

0.5 %

0.6 %

Acquisition related amortization

0.2 %

0.3 %

0.2 %

0.2 %

0.3 %

Gross Margin (Non-GAAP)

42.9 %

43.8 %

45.7 %

46.2 %

48.4 %

Income from Operations (GAAP)

$

135.4

$

157.0

$

167.7

$

170.3

$

118.0

Stock-based compensation

52.3

63.6

59.7

54.2

43.8

Acquisition related expenses and amortization

5.6

7.0

5.5

5.8

5.8

Restructuring and asset impairment charges

0.6

1.8

0.7

0.2

-

Income from Operations (Non-GAAP)

$

193.9

$

229.4

$

233.6

$

230.5

$

167.6

Income from Operations (Non-GAAP) Margin

30.5 %

31.7 %

32.2 %

32.4 %

30.4 %

Income Tax Provision (GAAP)

$

(19.4)

$

(14.4)

$

(32.1)

$

(27.4)

$

(23.4)

Non-GAAP income tax adjustment

0.1

(15.9)

(22.5)

(13.8)

(23.9)

Income Tax Provision (Non-GAAP)

$

(19.3)

$

(30.3)

$

(54.6)

$

(41.2)

$

(47.3)

Net Income (GAAP)

$

114.8

$

153.8

$

146.9

$

157.1

$

114.0

Stock-based compensation

$

52.3

$

63.6

$

59.7

$

54.2

$

43.8

Acquisition related expenses and amortization

$

5.6

$

7.0

$

5.5

$

5.8

$

5.8

Restructuring and asset impairment charges

$

0.6

$

1.8

$

0.7

$

0.2

$

-

Non-cash interest expense

$

2.1

$

2.1

$

2.0

$

2.1

$

2.1

Non-GAAP income tax adjustment

$

0.1

$

(15.9)

$

(22.5)

$

(13.8)

$

(23.9)

Net Income (Non-GAAP)

$

175.5

$

212.4

$

192.3

$

205.6

$

141.8

Weighted Average Basic Shares Outstanding (GAAP)

000s

135,633

136,167

136,689

136,607

136,165

RSU/PSU/Options

3,344

3,123

2,434

1,760

1,307

2023 Convert

900

900

900

900

750

2025 Convert + Warrants

2,010

2,046

1,888

1,756

1,566

2026 Convert

2,057

2,057

2,057

2,057

2,057

2028 Convert

2,018

2,018

2,018

2,018

2,018

Elimination of 2025, 2026, and 2028 Convert Shares

covered by hedges

(5,328)

(5,328)

(5,328)

(5,328)

(5,328)

Weighted Average Diluted Shares Outstanding (Non-

GAAP)

000s

140,634

140,983

140,658

139,770

138,535

Net Income per Share, Diluted (GAAP)

$

0.80

$

1.06

$

1.02

$

1.09

$

0.80

Net Income per Share, Diluted (Non-GAAP)

$

1.25

$

1.51

$

1.37

$

1.47

$

1.02

Supplementary Balance Sheet Information

Q3'22

Q4'22

Q1'23

Q2'23

Q3'23

Cash, cash equivalents and marketable securities

$

1,417.3

$

1,612.8

$

1,778.4

$

1,800.5

$

1,783.9

Debt (GAAP)

$

1,288.3

$

1,290.4

$

1,292.4

$

1,294.5

$

1,291.6

Add: Debt discount and issuance costs

$

26.4

$

24.3

$

22.3

$

20.2

$

18.1

Debt (Non-GAAP)

$

1,314.7

$

1,314.7

$

1,314.7

$

1,314.7

$

1,309.7

Supplementary Cash Flow Information

Q3'22

Q4'22

Q1'23

Q2'23

Q3'23

Cash flow from Operations (GAAP)

$

188.0

$

253.7

$

246.2

$

269.2

$

145.8

Less: Purchases of property and equipment

$

(8.9)

$

(16.4)

$

(22.4)

$

(44.0)

$

(23.8)

Free Cash Flow (Non-GAAP)

$

179.1

$

237.3

$

223.8

$

225.2

$

122.0

This supplemental information contains forward-looking statements, including statements related to Enphase Energy's expectations as to revenue, storage shipments, gross margin before and after net IRA benefit, and operating expenses for the fourth quarter of 2023. 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 Enphase Energy's most recent Annual Report on Form 10-K and Quarterly Reports on Form 10-Q and other documents filed 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.

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Enphase Energy Inc. published this content on 26 October 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 26 October 2023 20:39:58 UTC.