Enphase Energy (ENPH) Q2 2023 Earnings Call Transcript

Prepared Remarks

Questions and Answers

Call Participants

Prepared Remarks:

Operator

Good day, and welcome to Enphase Energy's Second Quarter 2023 Financial Results Conference Call. [Operator Instructions] Please note this event is being recorded.

I'd now like to turn the conference over to Zach Freedman. Please go ahead.

Zach Freedman

Good afternoon, and thank you for joining us on today's conference call to discuss Enphase Energy's second quarter 2023 results. On today's call are Badri Kothandaraman, our President and Chief Executive Officer; Mandy Yang, our Chief Financial Officer; and Raghu Belur, our Chief Products Officer.

After the market closed today, Enphase issued a press release announcing the results for its second quarter ended June 3, 2023. During this conference call, Enphase management will make forward-looking statements, including, but not limited to, statements related to our expected future financial performance, the capabilities of our technology and products and the benefits to homeowners and installers; our operations, including manufacturing, customer service and supply and demand; anticipated growth in existing and new markets; the timing of new product introductions and regulatory and tax matters. These forward-looking statements involve significant risks and uncertainties, and our actual results and the timing of events could differ materially from these expectations. For a more complete discussion of the risks and uncertainties, please see our most recent Form 10-K and 10-Qs filed with the SEC. We caution you not to place any undue reliance on forward-looking statements and undertake no duty or obligation to update any forward-looking statements as a result of new information, future events or changes in expectations.

Also, please note that financial measures used on this call are expressed on a non-GAAP basis unless otherwise noted and have been adjusted to exclude certain charges. We have provided a reconciliation of these non-GAAP financial measures to GAAP financial measures in our earnings release furnished with the SEC on Form 8-K which can also be found in the Investor Relations section of our website.

Now, I'd like to introduce Badri Kothandaraman, our President and Chief Executive Officer. Badri?

Badri Kothandaraman

Good afternoon, and thank you for joining us today to discuss our second quarter 2023 financial results.

We reported quarterly revenue of $711.1 million, shipped approximately 5.2 million microinverters and 82.3-megawatt hours of batteries and generated free cash of $225.5 million. Approximately 78% of our Q2 microinverter shipments were IQ8.

We exited the second quarter at 46% gross margin, 14% operating expense, and 32% operating income, all as a percentage of revenue on a non-GAAP basis. Mandy will go into the financials later in the call.