Enphase Energy (ENPH) 26 Oct 232023 Q3 Earnings call transcript

Good afternoon and welcome to Enphase Energy's Third Quarter 2023 Financial Results Conference Call. [Operator Instructions] Please also note that this event is being recorded today. I would now like to turn the conference over to Zach Freedman. Please go ahead, sir.

Good afternoon, and thank you for joining us on today's conference call to discuss Enphase Energy's third 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, September ended XXXX. a After third XX, Enphase market for its closed press the release the results quarter issued

not operations, future our conference this financial the trends, timing including demand, regulatory capabilities of our customer product but to performance, service existing and installers, and management benefits matters. statements products related homeowners forward-looking and statements, will market supply manufacturing, During to, make anticipated to and and technology and introductions tax and and new Enphase of in growth including, call, markets, limited our expected the the new

uncertainties timing expectations. and These our and forward-looking statements of could these from actual the involve materially differ and risks events results significant

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

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

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

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

including basis of shipped operating revenue X.X cash and were as a and of our financial results. shipments later megawatt XX into discuss call. to non-GAAP us percentage exited gross million XX% of XXXX microinverters thanks will Mandy operating our of a million. We IRA XX% flow batteries We $XXX.X on quarter and and expense revenue afternoon, Good benefit. income, the joining $XXX XX% Approximately free microinverter go third today for margin, at and third reported financials IQX. of the generated approximately quarterly the quarter million, hours XX% all in QX our

how Let's are discuss we servicing now customers.

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

North in XX% was to in NPS QX. XX% Our compared America

minutes call wait made minutes cost to time X.X average issues Our of was and significant globally. X.X expanded service QX. field some compared on We our in customer fixes root teams progress

and about now. operations. microinverters general, batteries the right environment talk Let's quite overall In stable supply for is

during shipped Texas. U.S. in manufacturers Let's Carolina, our We South began Texas approximately at third quarter. and Wisconsin cover in Arlington, microinverters Salcomp manufacturing in specifically We to XXX,XXX facility Flex the U.S.: microinverters, X the manufacturing. in customers in contract in Salcomp Foxconn from QX

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

batteries. about talk Let's

are have pack we batteries, IQ which For of suppliers, China. X both in cell

We us to manufacturing up hours of ramp have a capacity in well XXX-megawatt per quarter, positioning XXXX.

IQ We into XXXX. are of manufacturing middle U.S. the by at bringing looking the of batteries

Let's now cover regions. the

The In decreased U.S., Our overall to QX sequentially and XX% in sell-through XX% mix international U.S. XX%, for year-on-year. was QX our the down and our and XX% revenue XX% was of QX. microinverters respectively. revenue compared

our QX. was gross XX% down to in of at also down the healthy compared margin. in sell-through Europe was U.S. and our the XX% to our IQ The in of by our in Europe QX The On sell-through QX. hand, batteries sequentially up to In QX. XX% XX% year-on-year sell-through QX IQ the QX increased other was of Europe, compared by decreased batteries compared in microinverters revenue in XX%

solar Denmark than recently IQ and many microinverters of with attached opportunity U.K., U.K. these more having batteries. of markets like battery in Sweden, countries with microinverters healthy entered We rate We countries shipping new and Combined, XX%. residential both IQ a represent are into now markets and Greece the batteries Europe. X.X IQX gigawatts

I'll Australia. on commentary provide brief some

year-on-year. more in than Australia revenue Our doubled

quite are pleased third-generation of IQX our Energy battery. the by launch plus We is Enphase with microinverters a system, state-of-the-art powered it

comment the DC, our me Brazil, that on world. In microinverters, XXX have. power P [ ] highest launched we the rest Let we of watts microinverters IQX

We platform the installers software Solargraf there. feedback good and also launched have from

In panels. the into microinverters high-powered addition, started IQX shipping both IQX and support watts P [ ] we to solar ] the HC XXX-watt India XXX [

talk now about Let's QX guidance.

million. words, of $XXX in guiding $XXX expect and we continue in correction are reflects channel in products We inventory anticipate market We Europe. million in In the for U.S. to demand undershipping QX $XXX other our are This to $XXX undershipment for end approximately million revenue QX. range approximately inventory million. our QX channel the the normalize to of and by will

are is course, we assuming the conservative level. demand from unchanged Of current and picture the

we changed the QX. has the what XX would So inventory by that you told since end of ago days when normalize levels

fall, in to continue by When We've inventory the demand seen decisive reduction necessary. becomes we Europe. more We U.S. have demand the seen also a driven think falls, correction California. substantial market

of in no in until this We QX demand framework. our assumptions recovery being are conservative

So that explains the guidance.

QX our benefit. non-GAAP XX% Despite the gross above without we our in the are large margin IRA maintaining reduction guidance guidance, in

batteries and on have necessary We the any pricing aren't this changes broad-based microinverters, already time changes at making before. we on made

costs. doing and reducing pricing managing an and team excellent are job pricing Our operations of

than some color I'll more you markets. a usual little market give discuss Let's trends. on

non-California and Let's split California. states the U.S. market by

X% For stabilize, We to compared in see microinverters the business sell-through was this of our to trends. non-California starting QX the QX. weekly given states, lesser sell-through

to transition. and normalized levels. Utility the QX In quarters sell-through to rate California, compared hike. a recently XX% lesser for NEM our XX% X.X continuing due NEM in X.X California move are X of the fully California requesting sales to few to was to take microinverters installers transition our more NEM to a with utility rates higher X.X It will QX in

solar-only plus half CPUC, will a rate solar X.X to for that X.X even system. become period of system that battery by NEM is the close hike payback Assuming approved a NEM the a

good. So that's

few based as internal say before share new about color well Let for us. data. stable as more I words third-party Europe. both not a on see market We on for U.S. our Competition me is share today give microinverters

We technology to product on and have and service relied this quality win our AC we customer expect differentiated distributed share, architecture, with to continue. always our

a for of cetera, design downturn. are proposal, help many tools disposal -- as tool have disposals are have software the a several the installers We that bought go such lot in last acquisitions tools, time as such services years deeper made that in et our tools we the have the couple installer lead and the management, over partnerships we and lot our that of we to permitting

Let's bit. about little Europe a demand talk

We much changed are last summer. ago. the quarter demand from challenges from situation saw a in facing and X days from recovery We weaker Europe, has XX dramatically the

that We temporary of destocking. lot think weakness, the aggressive relatively see strong we Europe more temporary Despite we oversupply U.S. pullback also remain will facing of distributors and solar a much fundamentals in be as underpenetrated this to in particularly equipment, leading the are panels, the

We a lot of new with entering and are geographies microinverters our IQX batteries.

we Europe. So bullish about remain very

was that sequentially an was country's net me think market us I short in Netherlands Installers in visited fear be November. the first export France our ago. of came largest confident net Europe, a the market, in will will markets leading payback QX be our that was in caused the This X of down in after X penalty are elections pullback has in ending to sell-through The compared confusion metering XX% Netherlands. I In Germany the and detail. down We QX. largest lived. Let discussing tell last I our continuing the be quarter around period our European to customers for attractive metering few Netherlands, and X the back. this away the our Netherlands, spend minutes with clarified years. weeks installers, pull that plan

EV batteries, chargers dynamic solutions, norm system become prevalent going become total are the includes tariffs addition, as which Netherlands. to In in and more solar

well take of are changes. positioned We to advantage these

see rebound QX by seasonality. QX, market our for compared quickly. to this driven France, In down was potential sell-through We XX% very to

increase and seeing early more are that expected are to We recently rates moved as in utility higher even already XXXX.

growth gain are In and QX our compared to strong was there. sell-through activations, XX% installer to and we QX. sequential in saw Germany, continuing traction We down count

products, our batteries. IQ about new talk Let's

batteries increasing Our of last quarters. the been for couple over sell-through has steadily

point power specs adoption our best are deliver battery an at commissioning and on With an and for are rates globally. price business. inflection The We our we battery of the point. the can at any industry-leading warranty the best at times till IQ right XP, date Battery the rise XX-year battery Enphase

Battery XXXX. positioned Asia are in even XP. grow months Europe We with battery we countries the next few the working And to sales IQ and in entering well throughout more on are

That XXXX. In the our fourth cost addition, much a and we will form a in of introduce factor reduced generation reduced middle have battery structure. to expect

we to enter discussed, many entered next plan have the IQ many markets and new new with in Europe We several more X As the Asia of in months. markets microinverters. previously family

for about highest microinverter power, XXX our other markets. DC panels markets. Let's date, this Africa, power AC our Brazil, can talk the ] that did for solar emerging is This Mexico, up to till residential support Spain [ the IQX emerging before. XXX-watt I segment latest mention watts South Microinverter, in P India, microinverter and of

Spain to shipping started in India on Mexico in in QX South Africa start and into and have track Brazil, the We and are QX. product shipping

[ IQX ] cabling to variant solar Microinverter ranging other P The -- XX well from with kilowatts. system microinverter installations, a for is X-phase the of suited small commercial new IQX XXX

the We are as market. beta and U.S. there, quarter expect this speak we doing the to into release we installations product

small we experience. about owners We and with where value our to the our can add and we business customer bullish good quality are commercial very business installers solar believe

in We and IQ is monitoring QX the launched It QX. chargers smart U.S. and into integrates X,XXX control to cover battery shipped EV and maximize EV days savings. our X,XXX over The Canada, actually. Wi-Fi-enabled. Let's homeowners capabilities. ago, solar in includes to U.S. IQ smart charging. It our seamlessly We smart just help both chargers a chargers few in over EV compared systems charger

called example, energy For by only, charging solar directly that's charging. from green

IQ working also many to Europe, of EV chargers middle in developing expect in the for them are XXXX. on and we introduce countries We

briefly. Let's now discuss our installer platform

Solargraf, functionality battery in California. systems our and provides X.X for now cloud-based NEM proposal solar design and platform software

software on platform and Brazil. and We The XD features offering is to now new U.S., are installers to our progress features shading Austria functions. Germany, now available make in and and continue

our any country to release as expect to software make offering entered. we part We this of that standard

conclude. me Let

instability, In bullish our are about is We Despite it our overall we in this, also X.X. through broad the adoption, slowdown business accelerate the are it the U.S., worldwide. positive globally, drivers U.S., managing will high long increasing NEM interest climate ITC conditions. Europe, is XX% rates demand. grid very such macroeconomic and, globally, to term. that several in utility We adoption a on rates credit as tax EV In to change increased due rising course, of due see

will have meaningful We battery drive plus these solar growth. that no doubt

very clear. Our We strategy manage long for is term. the

We during are doubling with these our our customers down on times. relationships

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

in strongly innovation. We investing also are

working microinverters IQXX, on next X X as of are well and We IQX the of as next our batteries. generations generations

IQ We systems worldwide home with IQX rapidly comprising software. and EV chargers management also energy expanding are batteries, of microinverters, IQ

We commercial and our residential to the installer continuous cost addition and world-class markets, are introducing making products are our for on we small driving platform towards enhancements products. in solar to emerging

customer focus very on growth the Mandy financial for laser review over to continue with we'll make With and to innovation, home results. energy systems positive will and best-in-class remain our about profitability, future Mandy? that, her I our quality of turn call a and experience. We

related our and as details results more everyone. Thanks, will our the good I financial of as business to quarter provide fourth Badri, XXXX quarter XXXX. well of outlook third for afternoon,

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

Total $XXX.X hours We ship XX.X QX megawatts and quarter. for of revenue approximately of the DC was megawatt million. IQ microinverters X,XXX.X in batteries

QX, for margin increase IRA was the IRA to The was customers the for gross million by non-GAAP in was for GAAP our U.S. XX.X% compared XX.X% Non-GAAP in gross net increased QX. in of for margin net quarter. given margin driven $XX.X benefit. QX microinverters and shipped included made benefit gross XX.X% QX to

were expenses for million compared to operating million for QX Non-GAAP $XX QX. $XX.X

expenses $XXX continue the QX. were so compared to expenses We included quarters. managing operating $XX.X operating $XXX compensation for amortization and and coming stock-based operating of do QX, million expenses intangible we'll expenses to diligently GAAP acquired in million assets. QX for for $X.X of million GAAP for are million

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

marketable We of total billion compared securities a exited and at with balance billion of QX. cash to QX $X.XX $X.X end cash, equivalents the

of at in repurchase July for repurchased $X program Directors XXXX, billion XXX,XXX average $XXX.XX of we share common our QX price shares stock of by in part million. share approximately As of authorized Board an $XXX our Enphase

approximately by by ] in reduced the we [ refolding That taxes $X.X to for shares. addition, [ XX,XXX [indiscernible] shares diluted shares spent million employees reporting QX. In ] cover approximately

continue dilution to expect this entire plan. We

discipline. healthy we cash in flow. result QX for was line. QX, macroeconomic we to we Despite million of requirements to In our $XX the free compared manufacturing million our generate flow expenditure $XX.X completed continue free challenges, strong operations cash Capital million out a for Capital in $XXX.X U.S. financial largely expenditure as $XXX decreased and cash million generated from building QX. flow as

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

hours $XXX of $XXX to shipments expected million a We XXX-megawatt XX QX million within batteries. of revenue to for range our IQ includes which be to of

GAAP expect benefit before to XX% IRA be IRA with margin within range the net and net XX% to of to gross We XX% XX% benefit.

We excludes non-GAAP expenses IRA amortization. a acquisition-related before to with margin range to compensation benefit XX% net to margin gross stock-based IRA gross expect within be of XX% XX% benefit. and net XX% and Non-GAAP

estimated of IRA net million $XX shipment be X and of the microinverters. $XX expect million an U.S. manufactured We units to between benefit million,

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

to a expenses operating to non-GAAP million. range $XX our be expect $XX We within million of

customer but by reducing in expenses investing our are as We to operating and compared in service, compromise will our QX we not XX% non-GAAP innovation QX, sales.

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

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

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

this all expect microinverters manufacturing We customers We our now of million to operational. ship have X to X U.S. quarter. facilities

will for the questions. that, With I line open

Lee At Goldman Instructions] from first time, our come we which this will question, [Operator Brian with take will Sachs.

the visibility uncertain, know so of pretty appreciate of additional I I environment quarter Badri. the out is sort in some market-by-market the color,

of sense us this you I you the then comment the you in expect QX? made can QX. one, to undership said So you and ask, you're undershipping a QX about upon in expectations can Can the QX your And just trends give give they're demand Can at. don't that them for bit? like of It a then sounds you a get sort have trends of us you but follow-up. are? a where about contingent what you demand I sense expect internal to worse, And you'd how that is of undership all think way as framework, you much quantify that sort staying

Yes.

and takes. I think are a there few puts

answer be your $XXX in to undershipment going First, the question QX. to to million close is is,

less. not be too That's it little our expect bit but $XXX We a than million, expectation. less to much

will will I about you. clear it talk markets is second become And then and to

the stabilizing. that. on -- all, We see we California of see state First

aren't we therefore, worried there. that So much

during already pretty lot but south at a the levels. are low winter, go we could things course, Of

if think I Europe a definitely card. more, don't expect California be wild think we down is fine we'll But So a so. even goes to we more. little that XX% recover because

And to that Europe I normalize under right we in shipping order inventory. a the reasons basically all for the fastest now to said, be bit are will normalize. quite

revenue revenues, back we QX. what our what that expect, expect come expect -- close QX. in at Europe revenues, we a is selling at we bit we to will Therefore, looking be are what think little least to internally in So we up

ball. the Of assuming onwards, think course, And that normalized approach right guidance assumes now. in QX That normalized that you our QX the level, around not we level levels. said $XXX is I'm I but million don't to expectation have normal this current the channel to change no a giving going And is therefore, $XXX crystal from demand the is we demand inventory normal is million picture is level. unchanged, what situation. roughly

in to the the too because current tell the revenue of that our I'm quarter. that as course, approach much expect same second demand doesn't that number the you we assuming depressed So But level. is

is of sell-through One is already thing very -- which in say in forgot for We to rates, more one high are us. there back up in quarter big is weeks Basically, the market example, this was utility There rate France, which good. February. which is in the I the X August. already utility first another expected a see for hike

uncertainty So what QX. cleared we you, the that is will to think after Like there. have get education political I fast. -- there some do. will France recur We some we Netherlands, think told

now, think great And will better. battery Netherlands, prevalent is in be become where homes. to storage market market tariffs I to QX million starting the that's dynamic I there X in solar, in definitely for is think So a opportunity addition that with

homes. X Netherlands, there just so is that everybody Today, to understands, million X million

the opportunity all exactly for it same, now going in this million is homes. opens happen today. where going California, [indiscernible] plus similar to up in X metering into What's evolve solar is homes And similar. but million Solar to X.X opportunity not is net there to with something very

for to great but what's short it's So I you be long going happen to think in the term, I told us, term. going

context. it. That's great appreciate Yes. I

on. Just one here, pass it a second and I'll

it to can guiding see margins, recently? ex to you're would due sense mix? a low then XXs into puts the the on pressure next that How that couple due much that -- of like margin incremental a the pricing? to of And do tracking is been seems On and hundred How what benefit. us much you margins at bps put you've How takes from anything gross is you year? -- give year-end? it's non-GAAP, Maybe IRA down into margins much of

understand simple. our quickly. can is -- The business you And Brian, will a our you going It's it bit -- actually pretty see storage up. little

is one that shipment. of more a Our have And it's down And and with therefore, a mix, gross guidance XX% microinverter business have that's gross going lot IRA, margin With because the the margin therefore, a see bit to if non-GAAP is our for of of issue you product mix now under IRA. margin, to XX%. non-GAAP than little storage. XX% company we XX% this why without the gross microinverters product

So planning make pricing, in to not terms pricing broad-based are any I we changes. of mean,

is few competition last seen course, there years since for we of the Of here. but lot have the pricing, a competition, I've been

We special It's adjustment. it. have a about -- process. It's a pricing a process. [indiscernible] business to disciplined called very It's business pricing talk

one. And new. it been have is that doing That's We forever. not

multiple especially where component, we the for have in lot. these loading, opportunity our course, when also drop we times, this can for to contract a manufacturers, And is particular take work times, but suppliers costs multisourcing component, care have with in underloading, of these a a you under of

XX% targeting good the cost So to for these I be should any we in mean, And our times, able be year. by that. we'll drop target our -- company

and so pricing talk And cost. have to the equations, we both

This when we This we based is so what is is It confident not on we joined team a are what our we new. is pricing established in have price I company, quite value. that do. margins. the And is gross

have business these a And team us that world-class in its We for on cost environments. works usual costs. is

West next ISI. with Evercore come James Our will question from

seeing this as Or that faced understanding behavior any few pricing some are always a that period is that's have by very you overall somewhat is and rationally, markets, going the and behaving certain you've -- of this strategy, a destocking quarters? we're you irrational? through competitors weakness -- Badri, that your competition understanding we'll in market value-based get

you lying be seeing something tell if Well, I I'm not I'll irrational.

right? of Of installers They a to want available do point advantage the very course, lowest are at take in stressed, given cost time.

architecture. low well are without customer point point most of dollars But offering usually, they want service. understand quality. understand They And they a -- now, installers sometimes importance understand very They of failure. understanding, few trained single may might who's single the They switch of favor and therefore, of So somebody to to of They you understand -- experience. the no therefore, importance cost. lot they our distributed have are a upfront.

is money the truck a But have I installer cost. you more, that's X roll. if the mean, of more do service lot spend you quality no it, there problem And truck low by call roll, a in just despite a room have you if X you

Should the going their it. a say call take them And $X.XX ] of context strategy is to of all there? the it's do say pricing look let there. if us end of in you it's inverter materials, the call. put actually wise And -- $X bill at make they've the probably not And of wise around the are a day, risks of So at penny you that order or many realized we're play to [ for of pound things foolish lot you XX%. one, you that. Should to and

mean to we robust is I the than customers where lot discussions. have more talking we ever. of time a This are

rates. We we disposal, lot for tools even Solargraf, sometimes at at free of permitting do very on help example, for can We can them charge. generate example, our design proposal, and have a for services, of we leads economical installers other

their critical costs. we lot to at have -- everything disposal because that's a to soft And level. look our have component we We at cannot look of reduce tools at

more have we that to to you share, these comes want start installers back not the level at these times. look at system We not market and And discussions get move more And us, -- have looking once less. to full less. to usually in

see some reports. in the of You third-party that can evidence

Okay.

Okay. Got it. That's very helpful.

follow-up Just one for quick me.

the U.S. middle a producing mentioned of by give IQ batteries capacity number along with Did XXXX. You you that? in

not we have given. No,

we to day. We as will close come provide that more details

from question Eric Stine with next Craig-Hallum. Our will come

quarters or a given So on you about as what's has mouth, I get that left wildcard, here year? which in want I the California just say that a work from but to talking don't think some said to about optimism but out, that appreciate next there few going the the we to as mean, But talking thinking California, then the that, I is put if your cautious words market. stays in of I fair it expectation back market flat, hangover NEM, about into half can about is

yes. Absolutely,

absolutely. go back rates up. the into Meaning we are one, the As is continuing get to utility half,

the to September second the is is assume most. -- when system The utility are for I the mean, as a [indiscernible]. as needs times going not become advertised, same the August solar-only the only said up can It during I go it provide and can And economics in there are storage rates going grid is, a The -- of solar let's today. payback the stress battery actually what like grid the amount to almost even become the help resilience. same by plus half they the

services, number Why? now grid into that. utility positioned are is got batteries doing Because well now. we we a which get We one. rates it's incorporated you by combination make to the resilience yourself, power of can So power got And providing right great and utility paying you what money microinverters, that hours, [indiscernible] grid a at rates. discharge of the can certain lot Because because we Why high during you double you power, the exporting earlier our is of the for very do that batteries. to have important? for

we times, the maximize those power. can During

do So we that. can

storage. with of complete So we we Solargraf our And software. that we management proposal energy And course, and design have couple tool. plus have solar

just We to on times, All He it for engine, the optimization we need of everything. right the nothing. many will homeowner. fingertips the optimization turn And needs thing to the him. do do have an at

bullish about very the second of half absolutely XXXX. we're towards So California

California And follow-up. maybe for sticking it. Got my just with

biggest that a is transition I top With the leg other another mean, take you of some the cause things that the of them, whole mind caused for card? could could -- that being place factor. California -- that market to What what are that are takes to down? be factors are wild that that maybe

continuing is People as Badri all per potential home remember, rates environment Yes. with And cetera. up, tailwinds continuing are mentioned, demand more more this go et of heat This EVs, and Raghu. where the pumps, And people are they in the that electrify. that right to buying utility the to there, couple solution. are an up, and where is are going further is

as reduce payback. order your ROI and right plus well to your software battery Solar solution in is the solution. The management as energy is absolutely right the drive

et we as And lot have energy market well providing educating is terms of battery and into of with as people plus out with cetera, what what to a in system the education the tools. a as there lot end, of the benefits that marketplace going of solar them done and and well to explaining management

demand the where strongly. have back tools. extremely California up, why reason environment financials this The is the in the education, going So about are you good. have payback coming bullish are you That's is there, we very the

educating another way, a can of properly. installers, little -- question headwinds do in a bit. are headwinds So installers out the good stall us by we job aren't things don't we to If the educated see the or answer that

for and homeowner they can we the tools sit the very space companies, that important provide is and it the too other at in are easy installers, look this to is to confidently. So not in of and installers, use whatever And us eye make years our the and sure companies. kitchen so it's payback And is is all here why just your Enphase the say, X plus it X plus is to very explain Enphase, energy in them your competition payback years. the table

us installers. the do All a job in to training have of

do. to that that's is, -- of you that easy is And piece very enough of And I it. a think course cannot have not

that So biggest that's headwind see. the I

next Rusch with question Colin will come Oppenheimer. Our from

how little products investing Can to the look spend bringing you do? much these there's regular on be with can increase that and talk can a you at market, modulation Or programs do as these incremental about side? you in you to bit R&D going some a there the incremental cutting OpEx is

customer cutting QX. the side in little example, we No. innovation XX% by bit for on we except on service there. mean, to and for I are that? critical a We OpEx QX are doing a hiring are sales freeze, from and How positions, to

So a on bringing big basically, that has down effect got costs.

other there time of the example, lot the company. fat professional like, out look in a where are a at this of is few cutting The -- expenses we ones a fat are lot for

can the we companies a I cut contractors well. doing are we actions looking easily all is that and of level to as when hire of we in found And able continue cannot about cut to of cut are can necessary some at areas. those deny that -- lot we all have and well, example, XX%. We're For I grow, course, we other do as taken we to the there fact

which baseline cut quickly, to of We to back further always of like sales. we'd for is pretty room our XX% to are get because looking OpEx

is a model always which to to close cognizant give XX% of the guidance trying temporary. is course, sales. And of very be accordingly. But of this in to revenue, and is going we'll are So our are And that. we operate we that dislocation

negative going side, breakpoints Excellent. assuming guys impact. Can suppliers given change components you you're into with to in scaling about the through a you down on stable X And with and obviously, here, here may component that be that gross what next over working line. just guiding are volumes little or bit the I'm there's the that run a how are margins but do side, reasonably COGS you talk your or to you that the some to X on your then might the microinverter quarter on

no And a tough for is situation we partners great here. it -- mean I have Yes. manufacturers, contract our question. but

with some us. us tough Salcomp we were were especially they who also, when have Flex, XXXX, great right a partner helped partner. we amazing We times, when there -- XXXX, had

can one to of time of other. we this are take are problem? just but is So this mean recognize And the actions. taking, in have need things the together. incorporates Is work us we some not all do a structurally. do all necessary of of okay, profitable, this is confidential we these. where always P&L long-term short-term We both terms I us do problem? actions those And be that saying, the well we relationships, both cannot Can We disclose recognize a versus our we of -- our

the over we continue work is quarters, message the few will them. to next so with And

We are guidance you margin. will transparently gross confident finding for the the P&L together. we working are in give right very solutions that But the we

ROTH come Shen question from with Philip next will Our Capital.

Badri, you SPAs. brought up

So I that. a on with figured question I jump in

have that of SPAs, up a checks kind some in maybe get off or know, something will I XX%. on exclusivity pricing higher As for you know you you return you through Does at the Can of base? you with negotiate that Or micro just our with bunch come is bit? lower little under agreements when SPA talk that resonate the of volume. price a often all? order

Mandy, your how work SPA then, financial accounting statements. might talk on And can you through

net net like sales, sheet? the accrue Or on do you example, have your liability For the your sales? you against a do refunds balance you SPA,

usual. list Enphase. on for happening. It's has It fraction at call, of stands on DLP, A for SPA special a SPA. there volumes depending upon is customers, all, But happens may always pricing up So how others go quarter, as first which happens it next within what the the DLP, our our adjustment. for fraction the quarter, And that been is forever process is business usually is the do we at business small large no a business distributor as their of their And price. business if depending at we of call SPA. forecast,

one that the X exactly whatever. came have is X that curve. accounting process ago are that's active. very down. is active. have It's you And what It years And the we is I goes for the volume a always It's when the the up, is. done and And volume SPAs price how years. been instituted price last unchanged, when it I comes in

at our not those anecdotes, It's all in fraction you are doesn't a about matter. reduction, matter. So least dollar It One the buy it customer customers is of don't talk they price. of trend. a large

you now us. tell you I'd for continue we will adjustment, the is right That's do pricing to of will So broad-based are way there to Yes, we SPA. like life if And adjustment a broad-based no -- telling pricing we you. that there's from us.

market usual. business share that. of it And we'll us It's a to for the x sometimes, do way for new. Nothing amount is lock quarters. next as And

SPA question, and accrue reduction we recognize answer process, no on a accounting Phil, the right? accrue So as liability to balance sheet. our associated potential the rebates liability, we for When quarter for revenue the is Same in we yes, our shipping, current future revenue, change. your accounting rebates

Great.

you margin gears, have wondering through appreciate And Okay. I know by official I could to guidance quarter you trend was you shifting then don't talk 'XX. I color. 'XX. that expect for if any in how

QX. some So on QX. close to you there, undershipment gave perspective There's

product the to to product similar more in QX base under to more the in skewed -- QX to this So product back maybe potentially margins and we in 'XX that next QX pre-undershipment half micros year? micros, again? you back back after would QX of be to QX should return due mix QX, case and in to mix levels shipment due is to then expect to expect because mix And margins heavily returning batteries so

is If that's Yes. I logical. logical. you right. is mean, what QX -- It said

levels. similar expect We

quarter. guidance, to prior Of change. bit going is just going not to expected the giving course, then but microinverter because The higher is giving be And I'm mix QX, I'm mix than a we little the to trends.

that we That's So expect logically. correct.

come with Mark will JPMorgan. question next Our Strouse from

I given well. I the space, call it's of believe just on this kind XQ But the revisiting. in worth asked as the across valuations I thought decline precipitous

So of cash. on a you're sitting pile obviously

You generate continue cash. to

that's into the macro your Just planning here? you're if until on on thoughts curious, something leaning latest that improves M&A,

number that at a companies M&A time, of companies the meeting. take look of come. do a all We are Yes. every an a week. lot There have I

company these more in cultural times fit. strategic course, We important. especially hurry. important, are is and forrmer the something careful, is aligned, that, careful latter of fit The not that of to in terms buy sure making also of We're very even is in practically extremely

are the we in innovation in that batteries. more So look management home sometimes Usually, for like companies, software, We usually automation, in for the solar, look areas these. we energy example, we commercial smaller for any now. small all of without companies. If kinds [indiscernible] move it Please at to bolt-on mean, I we tuned. done something, be we knowing. looking until have acquisitions. on That's what you are stay But won't

update there a just real quick then apologize commercial or timing the I if small but an And this, color there? the follow-up. I on any missed product, was

was. there Yes, Yes.

are is we now The installations right as We doing great. product speak. beta working

expect this quarter, out some current of introduce quarter, and to this product in We make QX. reasonable expect revenue we this product to in

come Our next Fleishman question with will from Wolfe Steve Research.

of Could The the that you between out $XXX and that undership you're talking million Europe? about. break U.S.

I X. would say approximately equal between the

And issues some when like, Okay. also the at to things, what X Is the with look what's impact -- just they dominating the -- one -- equal -- demand mentioned kind of what about you started you destocking then the flavor the see drivers? are Europe, of could distributors give then and of in other? you weakness, the you weaker

truth, Actually, them little few the But -- a under a is there will not to are some every different. tell country Clubbing together justice. bit macroeconomics you do factors.

It's installers, more to if you. aggressive that Overall distributors, a rewind -- lot the consumers The crisis. to Ukraine thing their be countries in crisis, for were spike due renewables. country a many saw Ukraine be tell last caused a me plans to aggressive natural year, And of every you Let were gas we in generalized. in little virtually very pull the basically can huge shortage to Europe. all

storage, a profited also plus lot, from started stocking up everybody that. and we Solar

revenue a is peaked. now. right little Our then on realizing what's their happening of they got tempered And But that that suddenly that, because distributor bit is hands. also enthusiasm more the

earlier, because very the now of that Product the high. availability wasn't maybe back, panels in have increase X.X demand. panels. all availability also suppliers of of But especially product geared And years up, is high that

a putting before has So and of the panels distributors over is prices lot inventory happened, panels. on collapsed that a particularly on now they purchased on pressure inventory, have high at prices because the the

financial there some there. So is weakness

again, there as want they as conservative are and possible. therefore, -- But they now less to inventory hold so

macroeconomic. a of kind that's So

it, went that interesting I concerned. I got weeks dynamic looked I Now when situation there heard bad. not to come is Netherlands, I our there actually so demand Netherlands very has got there that was dropping, when biggest when let's market. I and went Netherlands because our X at went I ago

there a energy Netherlands the couple company If to ago scare companies X.X a consumer about serve payback energy out X saying, All X on back help them. start penalty market, charge are going has in us an to is grid. basically think, if do to to million homes about to the that saying, solar, small export to you a is of to is or energy about is need pressure said a you one million X the got are Netherlands, government ] And the is export it's These solar we're months of charge simple [indiscernible] export they energy solar the They put the companies, to fraction. into see, cannot that, There net is manner, I a -- handle some ] X% [ They solar X customers. they called of with wind, you it's deregulated [ Vandegran XX finding Vandegran we because you their very had of a of basically metering where got penalty". "Oh, with they recently, years. easily. that homes. maybe trying matter they said random in are fact But an going were

to metering needs on customers putting something solar evolve which where are pressure say, storage. net to plus is into they So okay, the the self-consumption, government have

But it's little And are there. is, of disruptive. doing good bit course, a us so extremely for they the it actually way

is there respond So going the is -- to in it once government is place.

market, is last going an going net but there after happening, evolve to net XXXX. clarity that. still the this metering way probably to it's will is until election Now And come metering -- is

there. maintained So of next the plus solar that tariffs, we payback combination with good after the popular then which plus years for the covered be And payback. getting have X with dynamic is will storage

tariffs. net metering, the Netherlands. countries them have big as Many little of is export have not the way. early, picture bit in much gotten tariffs European similar introduced So Many of ahead. don't dynamic which a is import. but as to they that's a They feed-in in Germany very tariffs, evolving similar are dynamic paid

why is you That fraction. a on batteries. XX% Germany, find only it's fact, In attach rate

the So Europe. that's long answer on to color your question, but

I do the put move we away to let's crisis energy these we each but say, to these conditions of wrap the in have just kind topic from Ukraine just continue markets overall, guess up changes.

of these of kind your to changes? move does expectation driven by energy prices of see it you kind Just just some again? market-by-market in up kind of Europe improving? Or need do be Can

prices Well, increasing. are going are also In also I France, didn't talk energy about Energy prices. prices energy like the places up.

to rates going increasing. are mean, I So The prices energy utility are us. help

but X just of evolve for years, It's get a X X can payback solar is extremely Netherlands, the a solar. still, to is even mistake, like a a years, to that you France, so where of place this, still to for definitely into despite very solar make And place product. that to maybe plus going storage tailwind. going no good a XX-year like in in gigawatts be with of all good But X payback X

at now right we that's level to to So revenue there the dislocation why to recovery, wouldn't normalization, due small some least these, -- quick revenue normalized Europe. is a a due expect recovery in inventory issues ramp-up say but I

Jeff come will Osborne from question next Cowen. with Our

Badri, localized as now that QX. argument past manufacturing recovery. by in maybe still a be the both on XQ continent and would continue as inventory X yourself XX in your is think that is talked case, -- about the into assumption wouldn't that channel? curious weeks just I I that pressure weeks working number is your or you and an to guess, and why there I for competitors the on assuming normalized that What expectation is was X well

we possible, is saying you're what mean, but I don't Yes. think so.

So on the hand. I'll on weeks primer quick give you a

that it. follow follows you everybody it. I'd like to So I think say And generally,

week. you inventory with of For and channel, at XX the -- let say, at also beginning us mean I So have you And a a XX into in the units into a week. units XX -- at the you drain you okay? ship quarter channel example, units a week, start XX the if say let's you units ship XXX weeks at off channel

the quarter. of XX from which the minus channel XX the is end XXX, plus week. of at at you XXX Therefore, units quarter, a at drain same You the weeks, end find XXX, you XXX at the yourself have the because units XXX

yourself ask is You the what hand. on weeks

weeks. You divided is by XXX say XX. XX that That's

that So XX remember number, weeks.

Now X I demand is units say, that a oh, That have week say, I XX%. means us accumulating. my dropped is suddenly by, let

only assume -- -- of customer is units same that the number demand I means and a my end week. ship X So

So I which is XXX XX my on over weeks hand is weeks. tell X, now you that

into to suddenly my channel. material weeks by If oblivious continue the drop XX% I ship on and due to the increases I of to hand oblivious be demand. am XXX% go, I be a in -- continue same So --

drops, converts blow disproportionately hand So further we course, And true. your right? demand further up of on the the up can the will go and the weeks

a improves down demand the to the come weeks if bit, little So on going is hand fast.

dollar look -- the similar in And lesser be at they've distributors inventory a the I held number they logical the in have XX- that the things even number XX-week that that to past. had we the think fact, because in dollar here So will we'll mean, past.

of think we prevail could of course, -- demand end that all pretty change will market logic So and quickly.

not really the example that -- that you I weeks gave So which It is is demand, obvious. on in hand small by changes you drastically something change can there.

the do do that follow-up I My doing -- wrong, goods, already to export under and intend jurisdictions. that. something I'm I appreciate in XXXX? but if allowed or manufactured think Is international to you're me U.S. you you're to, IRA correct

course, Not doing consider.. today, but of will

America. Dumoulin-Smith will question Bank from Julien next Our with of come

across the customers, you if those value will. together to you think how how in a And going right? some addressing especially you into as next ones, but working locked year? larger I'm So partners, few about dynamic, backdrop and direction are of likely your their respective California. wanted while think exclusive number deals I just optimizing you and with dealing given pivot in which different are how are clearly realistically proposition to a needs, a about here, do have of these curious, different slightly the

those you If of here, trying really into about to specifics you are. how locked to if and think know will, that I them, get how can working but volumes contract with you dynamics? speak not the I'm portion in that,

right? customer talking them. have, is Yes. one very I closely we the We about which We official. And lot. we that's value are mean, I presume one we with at large you're lot. The experience, partners, work there love their their -- it's only -- relationship we our service whether are the all relationship I quality, time, a it's we mean, whether customer value their here, a

So all will renew those. yes, of of we course, looking to be

all the these how commitments through like down under mean course and costs enough. might of terms the up look be here here, too volumes Right. know are identical how arrangements? year both back manufacturing but these relationships, you flexible think the what to here? not are as the the I they [indiscernible] at do underutilization new about difficult Yes. Fair to much. just It's I you And coming different then contract flexing

I will it Right. same say prior thing the answering I here. did question, talk a about and

We They helped we have XXXX. in trouble us. has in Flex when manufacturing great great us been particularly were contract partners. for

are We grateful there.

very And during Our healthy. Even these are we times. relationship has been working together.

this Sometimes, we in it If going to gross margin. our We are say, or restructure. And long-term those willing P&L. a of a GAAP problem accounting problem. it and of our part and is all problem are is them report non-GAAP at cost look pain, we to short-term a as

read P&L there. and So you know is the should that everything

is fact manufacturing. contract cognizant particular temporary. underloading this a of But we for And the we view situation our are very is that pain

and share will we the us approach both be is sure So -- right make that. And doing of profitable and we pain. are think to the

Andrew our Morgan come Stanley. next And Percoco will with from question

to back wanted just prior So to come I a question.

clear of it's your recurring to potentially that is ability model. the backdrop to a you for So health is demand Can next manage the user quarters. a through installer TPO this few maybe just the average transition and the tough that going their the discuss be demand backdrop equipment to and of period

around working been and I capital think tax equity. there's some challenges

maybe just on of seeing some So those what smaller the hearing you're side curious buyers what of from installer repeat and you're scale the community.

the we we leasing model. mean I some color other We Yes. hear only transition news, that do industry do see clearly. from but to see

us, have partners. affect some we it is how For us great does

have of We [ John Sunrun do of close other leasing all Sunpower, great them. all ] Sunnova, business with They're friend a Berger partners. is mine. great and partner. We partners.

but mix not -- it us, moves could if affected. nominally is our some there say I business, would for is loan So to lease be product issues, business

that installers data California in that business don't many are We in installers have long-tail a aren't few we heard but have anecdotes industry any who from there. direct sources any longer,

provide with to only what -- time help them whether help I like mean, trying leads tell them, our X.X, you NEM business. whether Solargraf, it cetera, we So with them services some of can it whatever are can, The I for the I course, whether know. a can can their stressful we and we et we is or of them

And we have are in that. general. color We that's doing that the

through we we in do payment, is installers, And the the of don't. to is with our one We do we do ways of with would which partners. were business distribution. it business direct distribution, the the -- we do majority business see We right? distribution business If all

one level the direct So long have installers. tail little away therefore, relationship with we a from bit

my the have Yes, -- questions other that makes other sense. questions been answered. And

-- question the repeat you Could okay.

next will Scotiabank. question Our come Richardson with from Tristan

around 'XX that could made entered, appreciate timing think present time whether a of meaningful year. the wedge that's of even of thinking Denmark, I XQ talking that Should factor could growth India, affect you've be we markets factor you there above of and really sort next you're new the a about kind commentary that with the about? or on some Greece, be that stabilization stabilization that swing all just frame the a commentary could U.K.,

Absolutely.

Spain, we of absolutely gave a didn't that's all -- of start. we Sweden, even for are in that. growth U.K., a Denmark, batteries are great actually, we have -- of and were in countries Austria, example, correctly in microinverters, We that to place of for But we like ago us have batteries, so But assume you, we the I have lot vectors as Greece. in quarters present pointed we not many a out, you color introduced couple and

We have plans new all to countries alone, quarter. XX to about in Microinverters they are introduce the countries. fourth

So that's one vector.

New us. geographies, flip the there, there. But does very infrastructure establish some important for side, it time take on to

do your need installer build You to up base.

it we one. can over and a is be X to X well. well be them as but train our process one very need months, in to that longer win because is need excellently. butter early them And frame It itself. to do by time need our to And them Therefore, train we You bread as installers. can a as

are one. other Korea. new Taiwan, in is into Indonesia, countries for also commercial. several there small Asia U.S. are Europe a got about that there few X very today, smaller in markets The like, going Small are after. but we are gigawatt. IQX, a Eastern that the in we interesting commercial example, for That's are We big we us, rapidly moving

quarter. We are this that product going to add

much The we XX-plus is the XXX systematically service that and than can Europe less small It's with because gigawatts kilowatts figuring commercial in we that bigger. market opportunity we products are one out about have.

something competitive there segment, in but commercial. are course, lot to small that there, have So that do we looking of there we is pricing on a levers how of be on

one So that is more.

charging. connected EV is That a We The EV charger. EV just our other big introduced deal. one is charger.

he charging -- is everybody their batteries electrify, will product the with green money do buying type built. vehicle the help to X course, buys electric for will is And all if that, charging of the X investment, to and needs to he's one add to now. spend plus can to a grid, of with vehicles, do EV. He X vehicles, it's to He wanting from optimize work our or example. electrified home, meaning it to panels huge is do opportunity. He that homeowner it Now The add XX which got need solar needs to doesn't he an panels. about

talked and Europe, We what I these introducing following which is EV are chargers about. now in up

have EV chargers will next IQ year, we early in So Europe.

one the other now now pumps. management, is software, EV right? third-party energy with chargers Germany. other -- have Then connect home to heat the to We're and the We beginning also ability

system, soon, now one from the can EV his in solar, EV but we and giving one fingertips. chargers, our -- all hopefully, our third-party entire energy So homeowner storage, app, optimize third-party in third-party EV the the heat chargers app, our pumps I mean, optimizing meantime, his

that into energy plus have eventually So hardware we software management which there, we some will integrate our gateway.

countries, So including we'll the all the U.S. roll that out to

Introduce worldwide, small introduce batteries chargers, So worldwide. many, management many and and both solar software smart there, third-party is is new worldwide. manage vectors required plus lot to the the worldwide. whatever pumps which which products hardware done EVs into introduced, markets Energy have we for commercial got EV plus countries we heat a of U.S., in IQ

So we have lot a of vectors.

Of did in our which conservative from I course, I the not that perspective. which include color, gave, is

will with Moses next BNP Paribas. question Our come [ from Sutton ]

Tier health installer. on concessions market? comment asking wanted little more concessions, the This Are for the give of just a on curious you any outside terms Are price tag to you you Andrew's could about maybe asking distributors I just stress is for the sellers the of on seeing seeing [indiscernible] color if [indiscernible]. receivables, to California and distributors X. selling

question. Yes, -- the just I'm clarifying the

want business Is outside the health know California. the that of You to correct?

the [indiscernible] for small stores. the for Specifically

weeks long the of I -- yes, we [ too first but We the down for is not that a the the see. the can also QX X% bad. tail, That's right last which I mean quarter, X And X stabilizing you color now. as this QX. is see is poly ] from of QX, non-California Specifically give business was weeks what

it's up. a bit fact, little In

last long question it's is is see the year, we you from the is QX is high for to QX XX% meaning course, your XX%. it's down We So that a business -- similar the the our 'XX, is probably, of XX%, work we pretty maybe answer with tail And still decent. nearly still from tail of there. us. non-California long think But of if levels it nearly XX% by how the had is health business, down XX-plus by percent

That's We see data. business. we which there installers all but them whether We is we that think loans moving pretty I out have from is don't So Sunnova, don't for information, to don't color to see us, down, the what same you. are Sunpower, the leases. All of like get moving give hand are can of Sunrun, said. another I I one trend, great. that hand going partners it our

very California helpful. but specifically is That's markets? And then particular. better, on maybe sense averaging in those know just Florida, Texas little outside a I and any

the they down increase utility interest high of compared because the as aren't to the Yes. disproportionately rates. I in because -- were mean rates

lease particularly worst do them we So see that but and business many mean, And that moving like do said. and model. see Texas recover. the I what We Florida you were affected, we to they starting Texas in see of to California.

from next question our Guggenheim come Partners. will Osha with Joseph And

questions. Two

third-party Sunpower we tail Sunnova, has ADS [ know found ] on your I about any other that ownership. those curious, And seeing? whatever solutions have see one other previous you for talk ownership? do the or companies I'm basically it for when following is you're question. third-party that from if X First, you Or long look, accessing one, avenue, all Sunrun, markets do

smaller But few companies are companies. X coming those that those is Majority too. up, leasing XX% there are and is companies, a

sure evolving, and you and margin given you of why margin. earnings gross higher done gross Wall defending is of you But as philosophical Okay. about market all couldn't as Great. where the business curious question. more to hear more And it I'm talk your just to know some that then has generate analysis simply this stay quickly philosophy a is gross a have your really margin. Street I us how to say, love to just on if grew the allow, your bottom you it line XX% is. perhaps are

stopped if I pricing the is we've is is it It I generating value, I based value. right? eternal moment on for mean drop Can The us, grow over. faster prices, it question.

problem. it So on in at never the on And value that's I why base hard drivers. cost, forget don't those And need means it cost. but moment thoroughly. we do software. what Then pricing. we about I add to and to you is in the conjunction both it's and look base The you if -- battery the value that's do, that's therefore, microinverters what that

-- Innovation right it Silicon said someone is or innovate Valley, die. in

that are We philosophy. our company. That's

we high high believe and quality the price value. or is right prices So or volume high

Vikram our question with will Citigroup. come Bagri next from And

color outlook the helpful rebound? countries Very over as gaining demand to of function Enphase in on the you a top the of of share of as EU looking and gained million markets, your next number dynamic in expect in talk calculation then year, share market $XXX new Germany, base you existing mentioned, bit defend inventory reductions seems or of assumes if can and entering demand supply also, such of U.S. in like market first share. Is markets. Is a Badri, existing well that that you quarter. as Europe. mentioned for in in the quarters? you recover countries market you inventory this X a as new And rebounds about that it in reductions like sort that, market And on you're to

were there in look But any You far. so to haven't seen you that. defend if share will declines some, market

here from levels I changing demand the the color you for told I'm a general just QX, And we give already for picture current we to aren't you giving that mean guidance QX. Yes. I'm our but assuming not assumptions. in basically,

from next picture -- the not today. So our in demand changing picture demand where is changing resumptions based it are on all not

we So in that's assumptions. said what our

time have for of what Then problems, we experience. against for a always us with -- All problems. of your on work many question Yes, our said, like one lot in is gain the our of we our our to and people place us everybody market what you We I on U.S. this us. a are customers. is U.S. executives our a Every lot are is is it. said, like over competition. road opportunity And is to the visiting I very all quality Every fix -- tools. our on where we take deeper. share, for service, customer number seriously. customer We competition of stick partnerships We important We course, defending work it's see customers.

in Promoter U.S. is XX Score the Net Our

XX/X, We are our center. opened call

service in today, together, We So a have home -- total put tomorrow right? will if customer we experience. field show up your have and have problem you it's innovation, technicians who a if quality you the picture

We a Now we have products. can X that we give more have. fact people made-in-America

and do Biden lot that not we that and just Carolina, came there, in President example, had of many for plant, South we just -- Flex, partners. in have including our they it distribution of -- a Now we have love installers installer because and partners, inaugurated we installers

them. It South there. in right Carolina, in there there it America very is for in product right? Wisconsin. Arlington, important Made So in They're right is

that will too. So we think help

the going in batteries domestic And we there. going in similar advantage in as we're the -- well a to and to vein, our are we bring take will of U.S., content

will that our to some leasing extra help provide partners. so And of

So This working not is how now. market business. yes, we on we right competition take just share. seriously, are do always always We

to flow million where repurchased you buybacks your free the is follow-up, have I closely we changed a I given see Should question follow I quickly free today. trend expect priorities up stock call. generation wondering $XXX this cash forward, versus capital following earlier shares as And $XXX cash of allocation the the similar wanted flow in in on in quarter. share going price if million about quarters? was

of out, what Well, cash Yes. pointed lot billion. like have you we mean a I $X.X

in disciplined are have willing We to shown back buy stock we that a fashion.

We back last couple stock the have of quarters. in bought

million QX prior have back bought and we $XXX quarter. total, I $XXX million in million think in the $XXX in

I think us opportunistic this time is for the of advantage take can price. stock an we where

will it. about we opportunistic So be

Praneeth our And with question come Fargo. Wells Satish from next will

guess, what changes offering I and year? against market I when Tesla's guess any are maybe that XP launched do takes ask about product new anticipate IQX this is of the puts kind your comparing I to wanted and ] [ And there X you and share next Powerwall battery.

look, out that that's those against This earlier inception since proposition is been fighting not competing we've inverters, very, new a the there mentioned And on, value any us. Raghu. And against company, Badri and a have doing the company competition since been strong technology, string to XXXX. against very technology of is we that have we

on itself. break if power So -- basis, We it we it, more conversion you module produce just because tracking you energy. we do about per maximum do at down, the have power module we if point a think right right,

We a of that's failure, are much distributed architecture. more of reliable. point We the single don't true have a value

one would impinged significant energy, the that system if hand, to a system fail String even operate. get other of the single of were on fail, of dead. to string or inverters continues failure the on to micros or our or the -- point inverter entire is our rest are of very module So

design, went those in Like installation stringing, thing installations, away past, string or you do And Again, have if maintenance, we anymore. and you all as a don't new much plug-and-play. steady, any look don't designs things at have designs string no with XXXX. just no us, also string put design, those the are limitation, to like, of can modules

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And and want finally, it, backwards. in you arguably do of You any high-voltage safety, to want anywhere is going important elements of right? DC system. the -- that's think I don't So one the most

traditional high-energy And DC, so And voltage not the we we chemistry with probably low all AC. and combination are Enphase, are is optimal. very high-voltage DC of

look, technologies as offer not on a system-level warranties. XX-year battery But single a which to down that is important. And types the of failure. compared point reliability one front, unit we the itself And reliable. having on break of battery, XX-, you modularity warranty reliability, well, a We is extremely mentioned, if offer the is extremely is other XX-year

You don't need over ours. to have the you have are very building block batteries where fast is large and -- we

of battery we the or system the really the homeowner can ] benefit day of utility you you needs. is by what sea of XP, the rate amounts to hour economic times can the exporting significant energy. rightsize high compensated you battery battery IQ power our third-generation those the during an But homeowner of the export mentioned exactly [ higher So power times to or where of because for is the those get

in the than at we it tools is And arguably LFP those the totality that Put phosphate, LFP use the provide, safer against finally, there. of the chemistry that competitive safety, chemistry, any technology lithium other any are chemistry the system, right, out provide, on all iron that that's together, right? there. other we design that software much look moats out all we is

open customer service, Now We are XX/X. couple that with right? our

at Our where We -- XX/X. The app can us open They the their call department batteries. see it. is beautiful installer customer homeowner time. solar, their they service call can have any

EV EV the even connected charger, there how the with they're doing. seeing is Now

VPP customer right really itself, arguably that a of system VPP the up program. a the distributed We experience. for connected for EV we of from ] course, chargers solution ] the [ batteries, one a and safest program homeowner inverters, solution If architecture differentiated, [ you completely battery sign is a the on and great bring have app complete can comprehensive the

And competition not solution. said, competitive very new I a have us is like we at -- any take So for all.

quickly just gears to guess, years I down you wanted educating X.X, California. that rate increases. X years, installers -- just of I these NEM mentioned maybe helpful. some switching about very to the payback That's you're to with is X

the all the You've week, are software on calculations despite lot where this, sounds kind of that direction. But Solargraf got good a week the automating installers. for despite But you're of right, in all just permits the and this, all paper. they're -- it down wrong on moving

is for if it just there's time, improve leads just the and So it I'm understand -- Or process rates? of anything it just contracts? trying do for Or is help a simplify some you signed to just waiting macro is to to to bit? convert can waiting the else

have that's the And we out go educating there, most to economics all in It's our waiting, get It there. we our getting But partners, to our and our needs helping right? and there to installer of continue industry the start It's out -- right? I homeowner, the everything educate tools partners, take. And ready. are are what importantly, it's there, it's going install simply house is think the what the would them that the showing require install the of getting they the convincing numbers, them a like, period better a solar that to like them utility showing battery using the homeowner, and them them, showing and years the X then front to from getting at continues of look would X rate improve. anywhere payback size tool of showing Solargraf rest and and

So I all we right are think things. doing the

is We of getting getting customers getting key both expect and also time. there installers and we out it's same phase, simply our and out a are expect we matter there and are sure there -- we yes, educating and I'm so competition out

the you'll I think you'll see -- market California turnaround as well. see

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

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

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

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