Enphase Energy (ENPH) 27 Jul 232023 Q2 Earnings call transcript

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.

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

announcing today, June ended XXXX. a After second X, Enphase market for its closed press the release the results quarter issued

events installers; not future and conference this in and demand; financial customer anticipated to capabilities and expectations. our these technology and and but statements timing the performance, uncertainties, supply could the and manufacturing, management These actual of statements of the related homeowners matters. forward-looking statements, will the product growth involve operations, During differ to, regulatory existing make and materially to our products new and service benefits Enphase risks and and including, introductions from markets; call, including significant limited forward-looking our new our results expected of and tax timing

more recent statements future not update of please any statements the no complete caution forward-looking you reliance risks to For and of or obligation information, the duty result We undertake any as uncertainties, events with forward-looking on XX-K new filed or Form in changes undue expectations. a and discussion SEC. a most and place our to see XX-Qs

on Also, exclude to certain a used note otherwise please that expressed have financial been adjusted charges. this on noted are call measures non-GAAP and basis unless

financial measures in Form of earnings We have website. our X-K GAAP found also provided a non-GAAP in can Relations the be to reconciliation of furnished section measures SEC which with these our release Investor the on financial

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

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

of microinverters hours QX $XXX.X microinverter were quarterly XX% X.X approximately batteries generated and IQX. shipments Approximately $XXX.X revenue and reported shipped million, cash of free We our XX.X-megawatt million. of of million

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

Let's we now how discuss are customers. servicing

QX, in to Our compared QX. in XX% worldwide XX% NPS was

the QX. American North NPS was XX%, Our same as

wait to QX. call time average Our X.X minutes minutes X.X in was compared

continued fixes service of expanded teams cause field customer globally. and our and on service to We customer focus root issues

Let's microinverter talk manufacturing. about

supply and major right now. stable there environment remains overall Our quite no shortages are

Let's come to our IRA.

We the in overall increase IRA U.S. accelerate to expect domestic the the solar and production. demand

part We of in creating jobs clean U.S. are country's the the be to and new pleased energy economy. advancing

QX We Foxconn South shipped Flex from in in XX,XXX and microinverters contract to Carolina our Wisconsin. customers manufacturers, of two in

with QX. third We in track the are contract begin manufacturer to on

to expect facilities. from XXX,XXX customers to approximately QX microinverters We ship in our manufacturing U.S.

Let's now cover the regions.

Our to QX. due revenue a our X% Australia. XX%, microinverters the in QX U.S. up international the our was record to and QX QX for sequentially compared decreased The revenue U.S. sell-through and decreased our U.S., was in the XX% Europe international and X% year-on-year. quarter In growth respectively. XX% revenue was in for mix overall and primarily of

year-on-year In sequentially margin. than gross Europe, our year tripled at more increased revenue and XX% healthy

XX% of QX compared Europe microinverters higher QX. Our sell-through in was in to

microinverters IQX Germany, Spain, shipping France, now We into Netherlands, and are Poland. Portugal

into are Netherlands, Spain, and shipping Germany, batteries Austria addition, we In Portugal, IQ Belgium, Switzerland. France,

some Latin Brazil. Australia, and now on I'll commentary provide America brief

customers. our QX to while introduced the more introduced started our we platform battery America, year-on-year. their Brazil, software than quarter. in Australia shipping IQ the installers help design solar and we PX in revenue proposal doubled residential second which Our Latin will graph We Battery during for In new with Australia in

our healthy to It sell-through distributors statistics color Europe. to we is are additional have installers. provide followed about to our the strengths. revenue recognize me U.S. business share therefore the products a of a Since large Let from We meaningful some representation talk in relevant our and distributors the U.S., when product we trends of on installers. by ship

broad-based The market due high interest experiencing rates. to a slowdown overall is U.S.

in only of earlier, As X% sell-through U.S. the said up was QX up X% QX our year-on-year. I microinverters and compared only to

stronger happen market the environment. quarter this first that than to is did the due not quarter year The typically second

we Let's now of by are seeing the U. discuss rest in the split the and market California trends U.S. S.

worsened states, the of states, and in the lower XX% of For Texas, sell-through utility non-California In rising combination these and as financing interest microinverters QX year-on-year. was disproportionately the QX lesser of X% loan to worse Florida The lesser Arizona. and due sell-through has to compared rates. rates economics was

year-on-year. driven compared higher installation California, In to to high higher is The summer. was the which of was XX% and sell-through this backlog expected X microinverters last QX by QX XX% higher through of sell-through NEM

a impact greater will are We and expect more we on results later. have X.X there speak beyond I seeing QX on will NIM what

to I'd some more revenue our guidance like QX. provide context about for

fourth QX the in and XX% Our high of approximately XXXX QX the to fourth was first peaked sell-through due microinverter sell-through below the environment the quarter U.S. in of half the quarter the interest XXXX. rate in both in in U.S. The

in Our expecting XXXX QX half quarter. seasonally sell-in was a channel the XX% relative first up only channel. the 'XX that the but to in has to materialize. fourth the the This inventory down didn't of increased were We

we inventory, level the our and light in this same to U.S. channel going we aggressive quarter actions Plus and continues are the taking reflected is uncertainty prudent Therefore, the are of in third down manage assuming forward. guidance.

technology few customer market on is our a not share for about have distributed we and both share. quality service high third to see say for architecture, data. Competition doing share new so. to party and words microinverters win relied us, we expect stable me Let on based continue today differentiated market with product and and internal always We

and partnerships We that are tools even the deeper downturn. disposal installers, for during our many have go

end For of systems quarter. of storage, we have the shipped the approximately X-gigawatt second battery cumulatively by hour

our We QX QX. inventory storage expect manage improvement and in continued in further to channel

for our we second IQ pricing XP As generation our reduced market we introduced Battery third U.S. in battery. the generation to QX,

sell-through the both well We battery sell-in for attach warranty bigger there as We during XX batteries, battery beyond and for We believe point and X.X. be warranty new with NEM new also for expanded QX. of increased rates adoption California QX customer the strong batteries inflection as early price a driving see as and both years. to will increased the

to in rate a our rates. homeowners. California power includes Europe, maximizes that energy moving control about with upgrades a X.X. panel attach NEM encouraging. We NEM management comprehensive little avoid smart to I'd system which bit X healthy have Since and from battery, we proposal a main Before X.X offer solution, Early of are speak activity storage like activity ROI for date installers NEM system to an anecdotes seen the on crossover X.X NEM increasing April,

fewer The balance can battery them well arbitrage. system smart batteries Grid labor and rate as as do easier significantly both faster less making install. components require of to utility backup, tied and

interactions consumption Our the and a provide tariff solar, solar graph batteries, can tool and simple design complex between model and proposal proposal.

a and analysis can can economics XX% years. sell payback show that expect and homeowners We to financial and Our think cash between offset X installers between for system, XX% X a bill effectively consumers. these

Europe. Let's now cover

Sweden, U.K. into European is later Greece, year-on-year to vacation, down IQX to and plan as more summer business batteries in countries robust. trend very and such due QX remains year. Our this Italy Denmark, introduce Europe is We growth but microinverters our typically strong.

QX. and us. be very We Netherlands strong France continued saw for to strong Europe broad across in based growth

both solar in XX%. to batteries. is solar residential Germany, starting Germany, gain in in are and real Europe roughly the We residential and batteries The X-gigawatts in rates approximately attach attraction for biggest market the is

of and in quarterly We count, growth sequential QX. activations during Germany in through installer saw both sell and batteries strong solar

party devices, which systems. in chargers During Enphase heat QX, we of pumps third also Austria and Germany is the management family of router and into home integration solar part launched energy to select our of our IQ enable battery and EV system

renewable There is towards technologies push the like and energy a heat way are electrification norm is independence. EVs consumers and pumps, in whole other home the to home in Self-consumption support Germany leading want great loads. Europe as countries adopting

competitive into power management home As we complex markets increasingly strengths. playing Europe, positioning see about our we our right and in energy needs think

are delivers our that solution strengthen like position. and market complete plan our cases quality use software this help we green to year self-consumption which differentiators addition service Our charging management features to key release with along energy home will newer and system in

Australia, by the Europe Let's products. our generation Battery in the third XP, in Rico IQ of launched Puerto and in launch cover U.S. We more end new to plans year. with QX

discussed, compared generation to battery same delivers As for I and X-kilowatt the previously of triple the the hour power the has modularity prior and hour a of kilowatt our power continuous batteries. peak double

at battery higher ability of X.X to rate through exporting charging into our grid will in generate the by revenue be beneficial and The time. third its California NEM discharge appropriate for systems generation uniquely

the with generation targeted minutes third is battery our install addition, to commissioning easy commission and times. sub-XX In

from U. excited are have S. customers. feedback We positive and we the received Australian about our

worldwide We have XXXX over certified batteries. to now our installers install IQ

latest for AC supporting and product Mexico, our the watts about emerging segment emerging India, will talk panels new of now residential IQXP This to for the Brazil, Spain XXX up markets. watt product, power, deliver microinverter DC XXX other Let's markets. in

to track IQXP this microinverter on this to later production release are We year. variant

for The other solar products. from variant compatibility, of offer our These same microinverter installation capability new small as X-phase XX grid to with standard high-quality, ranging system is shutdown kilowatts systems rapid commercial cabling kilowatts. the the XXX the well-suited IQXP microinverter residential

market later small this this release to U.S. year. expect We product solar into the commercial

as greater gigawatts. In than we the general, opportunity XX global commercial see

We value bullish in business our small microinverter high-quality solar shutdown can are market, installers to with U.S. forming extremely micro-grid and owners tremendous our about commercial where we we and capability this systems. capability and add believe of Europe rapid

chargers. EV EV X,XXX compared X,XXX QX. U.S. shipped our in discuss to Let's in QX We over chargers

introduce green the Wi-Fi in IQ visibility solar, connectivity, battery, plus have into chargers of the use Enphase These app. QX. enabling will EV cases allowing through charger and system operation smart to expect like We EV plus full chargers charging homeowners smart

updated software released both export system the our Solargraf and X.X installer and operations grid-agnostic The Solargraf platform NEM deliver best to experience configuring and for well QX, discuss electricity a panel and leveraging optimizing grid-tied X.X payback. now for in simplified for Let's by as as including design sizing possible offset offers systems, the systems bill energy placements functionality. management modularity time-of-use platform. designing by battery proposal updates a We NEM platform to enhancing

Let me conclude.

period no are growth battery rates, over several grid XX% rising solar such the the EV plus and positive increased adoption, utility there drivers doubled in credit, to managing correction solar has penetration are the We three the believe in We only Enphase the which solar residential growth, after so, X% Even market U.S. that residential phenomenal adoption. will these There will a U.S. is long-term instability, sales ITC accelerate achieved long and increasing tax which doubt years a as in tripled. market change of solar meaningful climate X% drive through the term.

strategy clear Our manage term. the unchanged. We is long and for

best-in-class quality will with energy laser We systems on a focus make home innovation, experience. customer and

are on with doubling our down We relationships customers.

teams. investing We are and service installation down in driving times our

We even product on new are more innovation. investing

IQX We microinverters microinverters making and are emerging in and platform. battery continuous residential expanding for solar to installer accelerating reach IQXP worldwide our commercial the small enhancements introducing our our globally, markets and Europe, business

Before over authorized of to I'm Mandy, has I our share to the a happy that Board program. Directors turn new call announce repurchase

future free Enphase's see and in our additional $X share the authorized flow confidence growth, in our has value Board we billion stock, generation for an cash repurchases. our Given

our the over call her that, for Mandy? to review will of turn With Mandy I finances.

and everyone. Thanks, afternoon, Badri, good

of outlook financial for our business provide will as details the more XXXX. XXXX well quarter second of related results, I quarter our to third as

have today, website. reconciliations which IR release financial provided can in GAAP these We to our the be of posted section our found also earnings in measures of non-GAAP

product improved X,XXX.X in Total to batteries approximately hours $XXX.X The QX. in shipped We driven QX logistics. DC gross revenue megawatt QX of the megawatts was microinverters and increase margin increased XX.X% for IQX by compared XX.X for was IQ and quarter. of was Non-GAAP XX.X% million. mix

compared $XXX were and were was expenses QX. QX gross $XX.X for customers for compared for the QX. to net in benefit operating QX GAAP $XXX.X $XX.X GAAP for gross QX. XX.X% the to a and million million margin QX for shipped our for to for non-GAAP GAAP operating U.S. IRA quarter. million $X.X of million made Non-GAAP included margin expenses in million microinverters

and of and impairment expenses for GAAP expenses acquisition-related compensation expenses and $XXX,XXX intangible million amortization for $XX stock-based and charges. of operating QX included asset of restructuring million acquired assets $X.X

was compared million per a $XXX.X $XXX.X non-GAAP to million for basis, diluted QX. $X.XX from for earnings income for QX. compared million QX QX income for QX. a basis, GAAP On operations was share for On $XXX.X a non-GAAP non-GAAP in million from $XXX.X to net for to This resulted basis, million to $X.XX $XXX.X was for of On QX QX for compared QX. million operations income $XXX.X compared

income $XXX.X for of compared total net QX. income QX with QX. GAAP securities $X.XX to exited We GAAP cash, to net in of cash This was to QX. million balance $XXX.X for marketable billion at compared resulted share the for earnings and $X.XX end $X.XX for QX of GAAP of per QX diluted million compared billion a $X.X equivalents

Enphase shares approximately for of $XXX an authorization $XXX.XX We common Board completed stock QX total repurchased from average approximately million price of at our of million. share our $XXX million repurchase X.XX a of Directors. This in

our Directors $X new repurchase a billion mentioned, of program. authorized As has Board Badri share

reduced withholding diluted employees shares In shares addition, withholding we the shares. in taxes XX,XXX by $XX.X to cover million approximately spent QX. approximately by for That divesting

the year. throughout We expect to point continue this anti-dilution

$XXX.X free Capital million for compared was investment U.S. in primarily generated $XXX.X QX. increase manufacturing to due and million million The In and was $XX.X QX, expenditure cash for $XX in operations QX flow flow. from equipment. cash R&D to we in million

discuss third quarter for outlook let's Now of our the XXXX.

We hours revenue the includes expect XX to megawatt batteries. shipment XXX IQ third $XXX our of million, within a of quarter range of be million of which $XXX to for to XXXX

GAAP and stock-based XX% of within expenses gross be be to margin range XX%, excludes within compensation range gross acquisition-related which to XX% of margin to a expect amortization. We XX% and a to non-GAAP

include Our gross any IRA numbers margin do guidance benefit. not

U.S.-manufactured IRA net million shipments on million be expect of units XXX,XXX and to of We $XX.X estimated $XX.X between benefit microinverters.

$XXX be million acquisition-related our and stock-based amortization. $XXX million, GAAP expenses of within range expenses to expenses expect estimated approximately operating for including to a million $XX compensation We and

continue product to innovation, invest to our international of We be service will expenses to growth. $XXX $XXX range customer operating non-GAAP expect the within as in and million million we

taxpayer. credit a utilized of tax operating now Moving significant our we are research we loss cash most Since to tax. and net have carryforward, U.S.

and for X% with minus non-GAAP effective to IRA tax annualized expect We be at rate benefit. GAAP or plus XXXX XX%,

production for the how production credit discuss the originally production from based the reduction We Treasury, to like on will the reflected earnings. IRA be tax credit in therefore, a U.S. from But had I'd expect Now the sold. claim credit to goods account the reported by is pay, cost and advanced income expenses. in that we manufacturing credit direct latest our in guidelines production thought the of as

$XX net credit, the in in incremental costs customers We microinverter for manufacturing, to sold domestic be per $XX expect the QX. to production any of to range of

expect to XXX,XXX this customers microinverters We ship to quarter.

reach We end U.S. plan to facilities manufacturing have We our XXXX. the contract shipments robust of of per fully the to assuming operational of XXXX, microinverters X.X demand. estimate capacity end by U.S. our million by quarter

will With open for that, line questions. the I

go comes Please Lee from The line Instructions] today first ahead. Brian Goldman Lee, Brian [Operator question Sachs. is open. with your

question. your ask may You

is ROTH question ahead. Shen with next Sir, Please from The comes your Phil MKM. line perhaps go muted?

Hi everyone. questions. taking Thanks for my

between Sorry, calls. I'm bouncing

check to micros wanted I on on So U.S. the doing you're in with in what pricing

customers discounts may recent suggest week your semi-exclusivity. be in spot "aggressive" for checks this exchange Our with big

on anything, try know a if Thanks. greater have that of discount, mean, blended but volume Or of may Tesla. might to be the to suggest to the maybe you ahead? contacts some discounts it incrementally, response kind historically, Our of ASP-basis might that always what what quantify the business? Can in to going spot is some you now it if maintain I be, magnitude anything? that

Right.

pricing We not are general, overall. planning in reductions any microinverter

for always As used pricing pressure, us. it Since are regarding pressure. to normal pricing is inception, we

Distributed no with used X. architecture architecture on are single basically company founded string This failure. We distributed point inverters from always to Day means was based of competing wins.

which number that basically means distributed years It XX be has less and very means got that high failure of architecture, X.XX% inverters versus also components it's number string rates. semiconductor-based which of many means of other that So architecture warranty quality, a half may years.

for that an very And X.X-type home It customers NPS. NEM is In as example. an coupled with which service - that strongly addition, energy Enphase in to management are as of more for the there we Enphase more come. customer EV important in tariffs XX% believe charger become storage. it's AC a already Also, combination system and full XX/X an system service, is architecture, well. for well. Europe, Enphase It's tariffs system means those starting And solar. we

always. - special life. are So adjustments, are for fact SPAs, we standing are pricing We of disciplined. a They do that very

We times we And lot have like a volumes. form customers with And upon team. in at our course, a pricing have it we tools of And do we the partnership always depends deeper of this. disposal. -

we We digital have done M&As our and that transformation recent did.

option example, able us design give to invaluable software homeowners. at the making sell of time, can are this to because an and for for designing is Solargraf that customers they MX platform sure - showing effectively we

leads this. generation even company got. Solargraf in lead times of like we That use is coming So

is So answer normal. basically, your to question, pricing

batteries, reduction On batteries, our our I clear We of aren't battery. pricing month battery. cut any And we planning that, introduced price public on it's story. On the third-generation was yes, call, on generation a microinverters. saying in we back very a second the different

of both that Europe. in will as second-generation very be batteries for grid-tied the believe NEM good well them And We as grid-tied coexist. battery X.X

comes happy The time, that third-generation a are very about, commissioning that priced appropriately battery we XX-minute backup. for which is with

decisions and have done done are extensive They upper to - these on do aren't the planning. channel fly. with our So pricing And pricing protection we partners.

way. doing in believe in This a no we is so structured exception. things And

Thanks, Badri. Great.

channel a magnitude? price accounting that bit little for quarter we the well well Did protection you You price channel for about storage, micro it already that micros, as for the then which about just that we cut results? was see What does existing for talked in and pursue would inventory a the hit? is an hypothetically, inventory. the Or had protection standpoint, protection. you was read full? And QX should price since Thanks. we channel as expect And in price provide QX? if From

accounted for There protection be in price price the or been protection, in we our has QX policy. earnings. will offer impact as so other Phil, distributors a to going forward. for storage no And

lower for in point, to protection. our like micros, ADLP this provide So case, are do if planning that we will we that. things not price we By

Mandy. Thanks Okay.

I'll it pass on. Okay.

you. Thank

comes with go Oppenheimer. Rusch Please question next The from ahead. Colin

your of down much there's you for several little out cost talk supply next sounds that continue here Thanks your available supply to a and the guys. driving opportunities to It walk plenty cadence so over bit of quarters. the Can chain? about like ability

world-class mean, microinverters batteries. I Yes. we work on for initiatives cost and

microinverters, is we on there So of a do. negotiations that lot tactical

me this, put like nice side. Let on especially That's the that not a a is but extremely number, - insignificant. procurement organization that's times active. in That's

The other is over is which we design multisource. three opportunities one, take - in six months to where will

our For example, having a drivers, gate three we And of of example, sources in transformers, especially fourth for one. extremely this. three you fourth need times excursion. are fifth also on is group AC when and because we our careful for a we circuits quality integrated running that quality. having when very XXX Those a are last thing extensive The active have, qualification, versions DPPM have microinverter like with source,

foremost sure the that's that preserved and of all that. quality is making priority first through So us, for

to months. there term, comparator a a for to in integrate another We which more the is Is save us look one cost? little $X.XX? an for there opportunity us into can platform third for so look opportunity save an redesign that ASIC the long ASIC. we and material. at open And ASIC Is the to We XX to over at packing is bit nine

worldwide million million. $X shipped a savings our XX microinverter, we year, So assuming in for example, a $XX that's units

is $X.XX at amount. looking $XXX,XXX. a you're It's big So

you make that program We to question, my we until business can same a never batteries? the the QX, And will margin same. many batteries. called our business in on - you keep least make so is And answer in at continues my money we gross It massive have gross margin. baseline Cost. where even and are like always is the increase unless on convinced That's enter World-Class - people see, a asking

is we a are little higher batteries, bit Generation better. cost. And getting X lower. was so Generation on X

X, to on of we of we And have Generation Now where warranty, are in out lot a out. getting a we lot it, of are batteries. in better figured take terms cost top then ways on

conversion, instead battery, a we board entire the We you the are serviceability components, homeowner, have electronics, even cell them to fails. are pack, the which that bulletproof. and replace making battery of introducing where we for out batteries, that fail, never those so It is the because pack the battery which the and having power inside, installer figured replace power ones you on is cumbersome management of consists are and mechanical

battery. can situ. don't We battery But We to coming We replace a back need take it replace low. a wall. customer $XX $X,XXX can board. Therefore, need to very is the replace that, to the downtime of we don't the in

than and as will standard, are we you hours, we a to Our downtime your be costs XX lot. when to customer minimized achieve the achieve are more that, find want we your no replacement and And that. warranty our teams driving

So the generation. that's third on

there Fourth combining Now generation? of scheduled power happening within into got year, one are X fundamentally is management I'm approximately is more on conversion to has aggressive. and a board. What cost the batteries bit doing structure. if within are a we And maybe little we a battery fourth that what's the transformative months, come generation

will cost get the accompanied two in This us now become reduction, gross fourth X that component on margin So will even is curve. boards reduction, by in boards and third significant generation. significant the better the generation count

ship on of batteries. a takes We So, serious I accessories. our inverters, boxes. our are gave on And bunch also we then micro combine you puts and

have cellular We modems.

the have We gateways.

box. That dollars is as combiner it time installers. be going them in cost-effective as Europe, introducing to QX, are well is For on And going to we very going be help example, savings. for in to a both

And we lot years this company. of in actions ago, So started six the a then. have not we since stopped

much so Thanks guys. Excellent.

here. follow-up simple Just a

inventory. indicating this You've to here at for that weeks you're the to you're about seeing XX get historically what those in channel U.S. guidance XQ from wanting to of point? you the levels X talked Will have

Right.

So clear let to and have because some been too. in me have more present, not everybody provide may been not may general it context they

So of the sell-through was same that. is sell-through which in XX% QX. QX about below our XXXX. 'XX of QX quarter the in the the in sell-through level, peaked fourth U.S. XX% in at below microinverters The 'XX was And

Now what it did same a was as the that only in we we we That's thought. sell-through not that our QX sell-in, XX% be good But to seasonally was will QX QX. reduced was case. what quarter. thinking QX, QX, with respect

with we find So the channel. ourselves excess inventory in

And the the as from reduce - do, correction inventory thing by in way that. for and taking - the is much to channel. that channel to we onetime To my correction The shipping point, correct a in not inventory only to to is reduce take responsible a is there. do of

that. So we doing are

the We to aggressively reducing at come we of to channel. And more the end the in expect levels are inventory normalized QX. the inventory, on the hand, back channel weeks

guys. much so Thanks Okay.

The next ahead. Mark question Strouse from comes Please JPMorgan. with go

taking questions. for much very you Thank our Great.

billion Just with coming you're $X down valuations thinking this about the potential M&A space, prioritizing new how weighing versus buyback. across

business mean, lab? investing we manufacturing? all, domestic on building How we number care allocation new first. we have of take We need way internally? I How capital chain? about about to the How of one. first, work supply is, first the That's domestic R&D capital things the battery to do in enough Right. think the a needs of about about

at in is for, the we two, We small always company commercial well value opportunities battery increase the see we the in can management in exciting. in M&A. of are look we the areas which whether at software in the to Maybe space. space, significantly, home as as the look space, normally Number maybe energy look space. Those the

So decisions. -- to but going be making hasty are we not

We of usually like to easy most bolt-on we aware acquisitions, integrate integration companies. big fail are - integration which that are because

So very cautious. always we have we And clarity. are

company example, that enough do anything buy organically For think we we talent we grow. we can because a to homegrown not specifically inverters on will have

look M&A the for those. that's we piece. active have opportunities, We will we So and look and second cash, for

$XXX. of The estimated of at third the conservatively one we buy we after care looked the a -- about of stock which back at approximately did. last a taken quarter, Mandy stock, M&As, of we estimated? we are that. million it. $XXX after about at bought we conservatively million needs shares have disciplined is look And talked of can have We intrinsic - the is value but the some at X.XX value below actions is And So business, we the stock at

The authorized buyback, disciplined, $X But billion quarter. for another million flow $XXX share aggressive. to to things it expect us generate can cash Board you close do has be free when of every makes not be and overly we considering sense

And Thanks, just a Okay. then Badri. follow-up.

backlog X.X start what on - I you on California, repeat about this and removed as to selling think said that you but guidance and when just touched bit NEM maybe expect you systems be a the what XQ X.X? assumes, far as

And direction, mean QX, continue to of we battery solar. solar, who of nice, QX. anecdotes X and that NEM for on add X.X, years, for get even fact educated NEM even then of a in battery, that even hour kind XX%. rates will installers, need the X.X their battery, We our which X.X pretty payback. through we NEM It be from are are think X let add what continue is, the matter standardizing between September. We to payback say, hearing you big XX-kilowatt you attach installers, NEM is through our you I hearing That's the summer than when the believe will start. When until installers. some are of higher most X.X achieve but installers our better say from some they will seems - pure and a us pure

X years payback to years with X to to So enough from a X high comes battery system. the down X

more of installer lot the economics, has confident selling once that a they So them X.X. NEM are realized then

tells these them tool things Solargraf exactly. Our

It Germany is my Also, another And - is on that evolved. now, are in - solar how grid-tied is a of it may grid-tied of plus to most phenomenon evolve is view my California the California And That's today. is storage California it similar. very, right in is that's systems. Germany direction, to very majority move going view.

system install. to is a And grid-tied suddenly easier

panel You to don't worry upgrades. need about main

the home You worry full battery the a needs partial back fact, grid. And the to provides of can battery don't yes, to summer, in the in battery a savings. backup home months about couple export and money is and of all help of energy lot need backup maker where for that. a and And grid the

new. think storage Therefore, having said that, installers take But very their but - eventually, sell. XXXX. ramp. solar in normalize I X.X it I is will seeing start will to And NEM easy So we and think have will be will -

Okay. much. Thank you very

comes The Morgan Please question with Andrew next go Stanley. Percoco from ahead.

Great. a the I to question for had Thanks much to stable. Phil's so question pricing be so follow-up relatively appears on - just earlier question.

context, in really guide appears So the XQ that it is like volume-driven.

So your what regions, could you between provide fourth on in just the third you that the you. also volume how can if to expectation helpful. quarter, that context in would expect change Thank you maybe quarter, around just or is to And specifically? rebound discuss be start more

And to In to to we grew mean, QX, be typical strong And QX. in Europe very for in France. are the - due about slightly QX, in and compared I QX seasonality. expect Yes. to context, underpenetrated. us - we Netherlands down summer XX% summer compared Europe we just for in is general, Europe

blue countries almost Like Poland. Denmark, ocean. But -- Germany. other Switzerland, a in are Greece, the Italy, upcoming are us, U.K., Austria, for We Sweden, other

We those of all regions. entering are

extremely on are so Europe. And we bullish

of the U.S., is QX. I revenue It which the demand, XX% QX, overall heavier elaborated now. for as said, I because But indicative both our we is XX% QX the in down well to because sequentially a said XX% which peak. as was decreased compared U.S. following In which phenomenon, as the just in real in customer QX that of are compared - sell-throughs, to taking is we of down our And hit QX QX. is

a the shipments of dropped was the by We seasonal the expected sold to rationale That channel dropping be channel. we into into And only didn't happen. We the QX only recovery quarter. strong XX% XX%.

these have for we two now And correct so quarters. to

are we going it, the of assuming And sell-through depressed forward. on top

that's mimic think for basis. But in demand a we revenue drop will in general, taking So the are on U.S. I us onetime percentage why quarterly the the a exactly correction

maybe That's just And inventory a I levels? one understand what on on But on XQ you're is channel it. across just Europe what seeing can inventory ask that and helpful. historically quarter. I on Got levels? you're light can more elaborate you seasonally Europe super seeing maybe

because inventory is mean, introducing us, on why It cautious Europe. are products newer Channel in about it, we that's we we're for not are Right. side really XX-week is. now. And I bit little countries. in the But a worried high

X So we it to can we maintain week XX the think in range.

Got it. Thanks so much.

comes question Please Julien of Dumoulin-Smith Bank next The go America. from ahead. with

appreciate by implied growth, on it. might what any a inventory levels bit Can that here? to front? about you functions different And these the you. a you about afternoon, the about talk Excellent. as European risk think Can write-down inventory and cetera? team. Thank more you talk little especially I continued be Good bit et just inventory across normalizing importantly, the levels more backdrop geographies, levels, thinking just little

QX a is as question is And to higher Europe introducing about The answered to why inventory talked for in bit slightly several it's quarter I said XX normal, at are level just on and I Europe. little approximately a about products. we down down Yes. we weeks. that the But in although Europe, now the then we is expect in be compared new revenue seasonally QX. side

to new are where introducing going from U.K., today. we products, is we example, growth in are in in Greece, All Europe nonexistent Denmark, our Sweden, Poland, in Italy, several in coming products. in And in be new for

- inventory So about revenue to about there. worried incremental all be mean, those I worried are of not not and going

- other means - the the we installer selling - hand, on we distributor shape were buying great in in the sell-through. is U.S. which of QX at was the Sell-through quarter. our meaning highest is sell-through U.S., called from end 'XX, are

is the healthy Our QX our with for for at in QX, overall highest, the channel sell-through What of QX. XX%, and to sell-through happened the respect rates rate U.S., declined was QX. was and the inventory end very

we and good turned to channel, throttle our out will didn't enough be into we because seasonally that, it not but quarter, in - be to response throttle case. which therefore And a assumed did we QX the shipments the

also that making And are of inventory added forward, And going are assumptions. assuming, is So therefore, two we two we quarters of with extra are meaning left any now not we on. inventory. aggressive quarters

demand saying QX. why are is And same guide today. it channel. is the light taking the are as is We level our And a for onetime will at shipments the be therefore, we correction for that into

time, related confidence - over it. as guys here. obviously, equal within is implicit I gross comment you that And some as margins. sustain you consistently to can gross margin far if here, And I read inventory the quarters just least providing for Great. been excess at on guidance that several mean, then that time. Right. provide improving to Effectively

You higher of this margin supporting confident gross through these feel backdrop time several this levels here quarters? still despite period in for

are guidance. on margin we the careful look, mean, gross I

didn't XX% We said, have we gentlemen guidance I is example, we to the And for me who before. to that even like question the - what non-GAAP XX%. I like, gave asked say this

quarter, For example, in qualification, purely cost qualification Like saving of the $X semiconductors, lot from of only logistics, second by initiatives last we world-class ASIC, parting, by source saved or a resister, capacitor, quarter. multisource but a million. have negotiation. a simply, Last on not cost we

we on on that do So on do we that do that, microinverters. and do We buses that accessories. and batteries. We combiner

of we now more little us our dollars. higher and a And is and saved IQX, margin lot has higher a invaluable world-class are of bit which effort to IQX. got So mix cost moving a gross than has

to service margin. generation how a better Instead we do example. faster the replacements, commentary the Now that. $XX, terms basically replacement. product. We the batteries unit in batteries, other hit on terms on of boards of for on big warranty, done return, are are full than learning don't gave gross we taking $X,XXX I board within of much the which are we And a in getting from have on improved one also that

to our overhead ways So batteries costs on in reduce order innovative are also helping.

generation now And huge like batteries electronics, generation are a the batteries which battery coming. integrated reduction - conversion. what of I provide in The fourth management power power said, into is terms our fourth is

X will boards. we significant process, Gen take And that in a now so two system cost out. X boards And in be

both of So quite microinverters in trajectory batteries. confident our general, are on we on and margin gross

Right.

you come. much. Sounds it's to for several very Thank quarters

A - Badri Kothandaraman

Thank you.

next with comes Sandler. Kashy go Please Piper question Harrison The from ahead.

the you getting So process is are of we just based year-over-year down from early maybe that on the is speak X.X that feedback your distribution to non-California will data non-California that installers. you you NEM you're to believe on - your wait, receiving where recalibrating? do data? the Can larger on are encouraging bottomed And you in in based just by sell-through Can still the maybe speak to impression XQ? Or have said the then leading-edge network, is you XX%. attachment trends, from just

Yes.

question in mean I I think to sell-through answer QX. much non-California, on changed for it has your QX and not

That a In fact, to I was the it is worse for a until in this the at meaningful QX, level compared probably turn better. said to and worse X% rates be little QX take think about bit I expected interest non-California.

distribution happening. X.X NEM only October are NEM is that some NEM of Many have X.X. until do few - installers November. partners I X.X, anecdotal may installations we channel now. On said right mean, a And The NEM even our still X.X or evidence

X.X only in And for will QX, start it will We that QX. most are getting data data hearing NEM we be of X.X. sell-through on NEM

don't activity rate can't a the to I we like benefits NEM nice. of - see I in us in over there market I a the design it buying X.X. Solargraf designs lot space. And the meaningful from X.X. the are because lot of proposal a able NEM of software But we of it see cases. see. is very early quantify signs of trends I are see XX% attach software we on most like But Solargraf yet, the and have platform share I the battery one

And payback facts The grid-tied like fine is awesome solar. we pure what have solar. for said, batteries for clear even is I payback that the and

X,XXX matter throughout was there evangelize Raghu, And we quarter. So has a a lot of installers to training NEM our he And to last job himself came X.X. who sitting of with is his me, think visited sessions actually, only it is installers.

X.X, showed them We sell to what is on how payback, homeowners. Solargraf software design the for how with platform to to the NEM

that very the having But so we installers statistics to consumer. sell to have don't have end still, yet. confidence said that, high And

getting start the will statistics We fourth in quarter.

there adding you have for my the to to beneath Do amount maybe Romania? U.S. manufacturers? of agreements need with your significant Thank is maintain levels minimum then question. a in peak would you ramp by capacity just throttling that the for to Also, demand follow-up Mexico, that are India Or ability capacity color. activity And you're tracking as clearly, contract expectations U.S. to per back and your you

question. Good

of have Foxconn that even how be versus load is new is factories inside total one We right is now. their because partner, outside There we that sensitive factories with them we forever. U.S. And the Wisconsin. highly relationships the manufacturing chose want them. we microinverters to of the a U.S. X on in with our of us have been X, deep And we contract reasons have Two manufacturers one - those

- healthy and quarterly you have we we then. make the partners, to our guidance contract units will is million we this factories. I X.X to demand X.X ramping QX 'XX And that pending to number, the decision If on from decision mean, will basis. by to us with come steadily we not, of on of of robust load demand. a are number our that is a Now, XX,XXX be course, take. right And assumption QX how provide of to - expect with QX going will appropriately a we long-term do we work units, And manufacturing

you. Thank

Please comes Levy from ahead. question go The next with Truist. Jordan

my Good afternoon, for questions. everyone. Thanks taking

Just me. quick one for a

to Just side and into how that? break the us to takes a segment it give bigger viewing toward curious business grow things, a of and the charging if you're what bidirectional charging progression could little more you detail that on then EV - eventual

Right.

to a end EV of start can lot Flextronics company we that And of we was to basically So Mexico. have now towards so ClipperCreek, moved we EV chargers, in called scale we and done what the XXXX. a is the have those chargers that manufacturing bought basically,

That's We have done X. that. Phase

chargers, high durability we the what smart of way, were and very doing, The by great and will release service. which we are simply high is chargers. an ClipperCreek TV QX, Now and in popular very their IQ very quality original because

are that taking as And to are ClipperCreek charger. smart EV the rebranding we we So architecture, taking and adding EV we IQ charger. that connectivity are an it

never do interesting EV you once storage, And app, like Green from my only. configure in things you have things. Like, EV the charging saying grid. and plus that. then of you can into can solar solar. integration We lot interesting the the for charge Enphase example, charge a your do connectivity can Only from

So current I That will the QX in in. call quarter in we X. are happen that's Phase what

phase countries into to will be Now happen QX QX introduce 'XX. and the and next all of Europe, in these chargers EV that in will

We the are same working already on And thing there. that.

plus energy EV partners channel chargers be existing managing heat be full partner, storage. selling plus well. solar solar extension all home capable would are system with a to It Enphase plus storage them Our pumps for selling natural of Enphase management a as

So that's Phase X.

demonstrated and aligned We our it our closely is EV Ensemble bidirectional very website, with have charging. architecture. It on is already

that port the digital DC There's there car, There digital is the is called interface. and into a interface. a interface. interface tap we power of essentially, So

will charge of DC which is of of inverters, conversion, The the state management our interface which system. like home plug control we digital power the an you can basically XXXXX, system, will that other basically and have exchange higher-wattage car And take coupled The use. inverters that same into inverters is then that the things we signals. the and SOC AC is the our it car, energy

can VXX, we as we is well as VXH once So and VXH do VXG. do easily that, which

days on our - to QX is of and expect year. we early now. by we right next the there, bidirectional into are come are we That that product market working in still So inverter

add Raghu can those So are here. and that's four - the phases, then

Yes.

the plays that importance to this charger in energy important of EV terms Badri home of connected the quarter, management your again, are system. in going as release mentioned in an we So role,

the certain grid of battery the your construct NEM in which the it as time-of-use You certain times of of or to the about at particularly avoid discharge well, is think you of preserve when X.X as day, times want context allow -- charging the your at summer. battery the your right? well Specifically, times day, power car of to in certain as at the into part

like think offset system So think about of EV well U.S. load as as well period in homeowner, payback you as extremely vital management for an bill here as the you can Europe home management significant X.X in control getting both as, NEM your of becomes energy as a so terms we deliver under the home savings great as about broadly energy well. in

that. much for so Thanks

Thank you.

Sachs. with The comes Lee Brian from Please next ahead. Goldman go question

Hi kind appreciate, quarterly Apologies about about disclosure you've the guess Badri, I guys. channel. earlier. question you're of about the - all reading Thanks for experienced. the had detailed taking destock questions. how cadences the I a I the the, and

based kind in of math, sell-through XX% do you the I if quarters shipped more commentary the U.S. on So row a in your X than

little call So $XXX math that more. is guidance much million, correct. my it, And if down sequentially, is let's not bit your effectively if a roughly,

correct is -- get at with? as here, this of you into imply be start the to again. looking starting then normalized So if all entirely in channel that does kind we're what the going of once in Like math what's you're sort implication begin fill you're to XQ, XQ? And to channel a resetting environment, the to

Right.

way to you is - So in look at your one it the on-hand inventory, that way always forward. going a at - projected addition the look assuming Brian, demand ending to more other math,

not level of any We assume uncertainty the are QX. QX. for for we optimistic same demand continues So assuming

another math that really to that's of be portion into needs much in so done shift should the And QX. the we calculate channel how to

took that account. we And into

due As to to Europe, compared as in slightly to be we I expect also quarter said, down last seasonality. typical

the bring question, So the QX. back and that a place of the to answer to at end your to healthy We'd idea. -- that's channel like

assuming just the the channel the continued line approaching the flat sell-through you the in of XQ even you're how through Okay. Fair that that's rates? reset enough. guide weakness. year, of of for be Do you're embedded way kind this XQ, and a anticipate like rest end year, But to sounds your assumption all beyond

That's right.

I a we the little NEM have this up reason products coming bit onetime is also us. assuming confident that that more we - correction. are look, is for But X.X. this mean, a We lot a are - on new is The are

And clearly so onetime we correction the all feel channel. good normalize this will that

Europe countries including on many so And about. in top and to we our small that the it, we revenue, in the the commercial talked diversify initiatives U.S. of have new

correct. are So, we we optimistic cautiously are

my pass Okay. second I then guess then on. and that's into Great. a it good And segue question, I'll

of kind pricing Can strategy? you in Europe about those. you're maybe different guys. the the around new with mindset to the out wherewithal this of and markets you're is sort of share and there when And speak new kind Thanks high industry, new margins know coming thinking you have you some newer obviously, products, you as to margin enter gain player trying Europe, out you're maybe environment, level have But in to markets. at what You're protect out a work in in there? regards pricing highest And you're there want in a to you with? I

Yes.

I microinverter the I France In mean, Netherlands - folks and in think good perfectly. Europe, that's us a is understand also question.

service. quality, For outstanding close they we small We partners. France, and systems they to love service, them like these an extremely our are in love provide Netherlands and our

we Brazil. emerging question always areas, example, for thinking your enter something markets, new that's - on as mean, like The I we are the

commercial like even small example, the market. For

We able AC. which are manufacture are microinverters, those high-power to microinverters, XXX-watt

tune incentives, are a get credit $X.XX manufacture And in tax to we watt those for production we the of able Those, U.S. to the inverters.

us So is of terms share. there little aggressive I more a in opportunity market some for be think we'll there pursuing those. And become to

Thank Okay. that. you. Appreciate

Thank you.

ahead. comes Stein Please with question Eric next Craig-Hallum. from go The

Hi in at end. the everyone. for here Thanks sneaking me

side. So, again, that everything you willing I I you channel. I inventory good bottom just - mind, appreciate you be the microinverter correctly, to call and that gave the understand NEM the into about And market. think launch thought getting like fair X, QX expected if volumes. are a XQ, that then a Gen battery expectation? sounds last bottom in you in do But Is you for to it might I curious, feel in still quarter, battery - start pretty that mean, And on said with with the mean, I X.X is the

is Yes. I mean, expectation. still right. that's a That fair

We track are batteries. really for that. on on exactly We good feel

third-generation We our have battery. started shipping

third-generation the unique batteries generation. second some with The solve problems

kind the on second generation, up. Although have we cleaned of it

has outstanding commissioning The times. third got generation

that thing we that plus beautiful the combines is isolator. in The Australia have one the product gateway the

time. easy And I And somebody XX is did so, in minutes. the compact it yesterday, nice it's it entire and was to and under very told commissioning install,

really feel there. good we So

of prior this a of our X.XX continuous terms which has mean, of double power, X-kilowatt I battery, hour X.XX power just X-kilowatt is battery, kilowatts hour peak to and compared kilowatts In generation. got battery power,

very power is what And triple in peak fact, that because you that start it conditioners. double continuous on on and air is power. And peak is critical, helps

things but in a power, thinks of great peak somebody maintain lot much power, we have throttle do can to If we and it continuous - software. the ability power. still too So is

I we - generation. mean So with happy third are our very

time Gen it can to is step mean, business course, I as believe We is the we is function Of we introduction, in of power. no the at our bottom. of - but I a QX the compared called bottom. this -- perfect think terms battery X product

the are guiding XXX. to QX same to be range, We XX

start more And those U.K., Poland, into in should for there, with come Italy, you QX, as orders the start seeing starting should with account well. megawatt of to along to lot introduction we think NEM up activity a X.X more our Greece, all

win, mature go and well solar, more but are to definitely not Germany battery. and also lot a Germany, well, doing attach, confidence in business definitely and well. and as starting tough is it's me pick as Germany mentioned Germany It gives And on, we solar to up. is to XX% the both in entrant new just as earlier in as Europe, an a for in and Badri of - market of a battery go our one

on So optimistic, definitely feel the battery. bullish

the for Okay. Thanks color.

question with Cowen. Please ahead. comes Osborne from next go Jeff The

I bit. down million it Hi dumb us Badri People maybe you're quick way the might say But two-thirds Two a due Is ones. you in sort and just the of and wondering at ways. that down provide Raghu. of the of $XXX to be that sequentially could about if guidance, it midpoint. walk Is multiple third from the was ask safe to Europe? inventory channel bucketizing... a there of U.S., the seasonality us,

say more and XX would XX. I like

past seems that That's the geography as helpful. a or strategy marketing? Is the is humanly with start U.K., a more be then six would expand Any what's does mid In of take it. month distributor, Is training, it working Got possible how that with in be And your et it quickly. quickly as talking spring? helpful. year, geographies those productive Greece, you're into Or next many kicking to would Like, expansion, your lag? country in expectation experience cetera. to terms about internally? thoughts when

a a mean? new need sales is just in good That's say a need is sales my tell a What cross-functional does it when enter this complete to leader The a I geography. the we what You guys. It answer I'll we country. question. cross-functional Yes. because team team

account product. going do on to the of asking because the thing the engineers, they're there help field of design couple country, terms assuming you Then a first available the be moment sales need total application sales, you the is You meaningful need in is how managers that are in in market.

time. engineers So at the hired same be need to field the application

in need training. to of week workshops beautiful every to conduct We have Then need conduct day you training we city. the - courses. every need We

is So are vital. training folks customer required. service then And

without region enter in language. never service We local will staffed a customer the

issue technicians off Then - region. service ones the will technicians two service field field because or per experts. critical, any They're batteries, for where installers' are the who plate. One take battery are these

I've got ago, that Officer. region back. thought Dave So for retired be process He cross-functional And Commercial for I've are mentioned. about couple months up. us Chief folks, of years. that the back, is across six him five to my I we the but to entering team good staffing a a more people three with he gotten a going Ranhoff He's in of

go-to-market he so as in all championing new our as is segments And basically in activity U.S. Europe well the of

you. Appreciate it. Thank

Fleishman with Please Steve from Research. comes go ahead. question next The Wolfe

Yes, thanks.

ask opposed ongoing inventory inventory reset is just what catch-up impact to changes? first kind the clarify from to that as wanted similar can QX, some of of to of you to that Just others. a - Just the the impact do half sorry you're of in But the to the identify question year going -

this, detailed my me missed you Basically once - Maybe answers on try let to say again.

like guess for just in up. me hundreds heard like you on of number do that, that? actually, millions, have Help I revenue, a millions? Tens I on of

QX. what our guidance an is from of QX it because is mean revenue numbers actual the of for million. And is are taking QX, of our of I said it, a correction. $XXX is to in $XXX taking a Midpoint or - we seasonally are is rest we we actual down - million. onetime most what portion doing said we guidance And $XXX Yes. from million are million it, to Europe $XXX XX%, a is I

on And rates? the clarify the of seasonal just gas the Great. issues the higher How we've seasonality? terms the know Okay. beginning same to how some you aspect, opposed issue, know in do in then of it's the you of as Europe seen could prices U.S. you down, it's

hearing. Well, we are that's what

hearing We about that what fundamental to really, we aren't aren't we The said, are And is talks our like are have what of in inventory Europe. us, from are This we drivers underpenetrated we because for them. much close I -- changing. of customers. very all worried

us. But Europe blue year, is the in in Netherlands. ocean a strong and every are for We region France

In the Sweden similar. in similar. Poland, example, for similar. thing. In Like, plus solar In Italy, and storage. In Denmark, same Greece, U.K.,

underpenetrated are most France the except of regions, fantastic Netherlands, we So and have been for in which us.

And so think are about we Europe. I bullish extremely

more said, rate, is what than we QX, year-on-year. tripled growth more Our in growth than like tripled

are there. We very bullish

very Understood. Thank you much.

The Deutsche go with Bank. next question from ahead. Please Corinne Blanchard comes

have benefit into you I related of to understand point. the IRA next know can questions get believe my of year. Most But answered a team. you evening, maybe credit. impact at me been this Good if the Hi. tax like help

fully what some that if color does paying? you erase So be just Or you'll here. can give

Yes.

out it it IRA, net breaking the can so see properly. are we you from So benefit

benefit in shipped units because So you came XX,XXX the million. second quarter do was that at just of roughly now, net the - math, that $X.X can ended the And $XX-odd.

So million. that's $X.X about

QX, Now benefit for XXX,XXX of we have $XX.X an estimated and guidance given to of you units $XX.X IRA million. million a

the past, and mix can to number net every $XX how is told basis. on much you benefit that $XX I quarter and the give per-unit In is So the have because a unit, you every between per quarter. that we changing will continue is calculate

make Sometimes high-power we demand. products customer depending on

lower-power it sometimes, slightly a And is product.

changes. the mix So

per number, demand, we is, units pending will also robust million you We do gave which X.X quarter. a

to up in We 'XX. of will reach number QX that

'XX. do if So say, benefit benefit of QX it math, us average times, net That's of million number, that you million is the X.X an in $XX. units let $XXX.X like

that be goods the sold. the that's math. cost And accounted in So of will

will and And gross without with IRA the the margin break IRA. out we so

So be will it see and this, you clear. very can

follow-up. quick mentioned had X.X And of you. quarterly you expected capacity But XXXX. you million to the Thank end by just previously, Great. restart one

and next But change. by I look, reach? still year you and today, of that visibility understand can to demand anticipate that's - something today, as can of change As

And out another for then with at us go that say we look at year, why demand you qualified if it Well, give earlier time. to recession pending will saying appropriate is through all international, the we robust mentioned we demand. I it between example, that depends. and we is, and that next guidance this would let balance That U.S. how

Okay. Thank you.

next KeyBanc. comes go Please from Karp ahead. with The question Sophie

that by that you maybe dealers campaign the guess, at some brand kind expand it name? different me kind the ask awareness as people go-to-market I afternoon. of brand of product where wanted a launch in. and primarily Hi. so Good strategy, could for customers you to, do question you aimed make competition Or I to installers? Europe, reaching and targeting lines. squeezing you on learn face Thank across you end think is should by particularly to for you Does higher sense continue consumer

here our of have If obviously, that we said the at on of social to been And effective. have reach take Our for have the U.S., an that, consumer. disposal front right? really focused tools has done very really you do out we in use what all that installers media our we the end book a installers, homeowner. Having we the are

So cover installer our we provide do for partners.

letting our focus be the selling the product consumer. installers that end actually our are really, But remains ones the to

the Now all brand. Enphase because very clearly end the in Enphase one product see does consumer and that app they they see see the they that have

it. they do installer for our general, front let get So company's partners so products. be our in to we see - But the

doing Thank quick installers, they TPO your on maybe versus, I of sales And or environment it. does then IRA maybe can any navigate the for more where TPOs business that and becoming visibility forward? Got that you. given you what interest loans. are guess, how competitive on benefits? have market you share going any commentary a cash the can be with one price and taking volume mean And in rates the share, the they Do the

are see They mean, do cash, of And partners. from work tail. work these on number shift to long the trying leasing bigger them. from with our with PPA. Usually, many business slightly we I installers, microinverters. loans of less the to We their We a buy installers

So it changed some is so hasn't but for do us, happening. us, nominally That anything we see shift for far, correct.

Great. That's for me. all Thank you.

for This our over concludes remarks. turn closing to like back I would question-and-answer any the session. to Badri conference Kothandaraman

joining today support you. with for Thank for speaking and forward you look us We you continued to again Enphase. Thank next quarter. of your

attending today's Thank The for concluded. you now presentation. conference has

You disconnect. may now