Enphase Energy, a global energy technology company, reported a significant decrease in net revenues for the first quarter of 2024, with a 64% drop to $263.3 million compared to $726 million in the same period of 2023. This decline was attributed to a 71% and 26% decrease in microinverter units and IQ Batteries Megawatt-hours shipped, respectively. Despite the decrease in volume, the average selling price for microinverters increased due to a favorable product mix. Gross profit fell by 65% to $115.5 million, and gross margin decreased slightly from 45% to 43.9%. The company's cost of revenues also saw a 63% reduction, benefiting from tax credits under the Advanced Manufacturing Production Tax Credit. Research and development expenses decreased by 5%, while sales and marketing expenses dropped by 18%, both as a result of...Show More

Enphase Energy, a global energy technology company, reported a significant decrease in net revenues for the first quarter of 2024, with a 64% drop to $263.3 million compared to $726 million in the same period of 2023. This decline was attributed to a 71% and 26% decrease in microinverter units and IQ Batteries Megawatt-hours shipped, respectively. Despite the decrease in volume, the average selling price for microinverters increased due to a favorable product mix. Gross profit fell by 65% to $115.5 million, and gross margin decreased slightly from 45% to 43.9%. The company's cost of revenues also saw a 63% reduction, benefiting from tax credits under the Advanced Manufacturing Production Tax Credit. Research and development expenses decreased by 5%, while sales and marketing expenses dropped by 18%, both as a result of restructuring actions aimed at reducing costs. General and administrative expenses saw a minor decrease of 3%. The company faced a challenging demand environment, with a broad-based slowdown in the United States and Europe, leading to elevated inventory levels with distributors and installers. Enphase Energy continues to innovate, shipping its IQ8 series microinverters to 24 countries and launching the new IQ8 Microinverter for the small-commercial market in North America. The company's Enphase IQ Battery storage systems are being shipped to multiple countries, and the latest Enphase System features the new IQ Battery 5P and IQ8 Microinverters. Enphase also introduced EV chargers compatible with most EVs in North America. Looking ahead, Enphase anticipates continued adverse effects on revenue in 2024 due to market trends in the United States and Europe. The company ended the quarter with $1.7 billion in net working capital and $1.6 billion in cash, cash equivalents, and marketable securities. Enphase's cash flow from operating activities decreased by $197 million compared to the previous year, and the company utilized cash for stock repurchases and tax payments related to equity awards.