Enphase Energy (ENPH) 22 Oct 242024 Q3 Earnings call transcript

Good day, and welcome to the Enphase Energy's Third Quarter 2024 Financial Results Conference Call. [Operator Instructions] Please note, this event is being recorded. I would 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 Third Quarter 2024 Results. On today's call are: Badri Kothandaraman, our President and Chief Executive; Mandy Yang, our Chief Financial Officer; and Raghu Belur, our Chief Products Officer. After the market closed today, Enphase issued a press release announcing the results for the third quarter ended September 30, 2024.

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

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

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

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

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

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

million. us joining and quarterly flow third of our microinverters $XXX.X discuss thanks and hours quarter results. to X.X and $XXX.X of free revenue a batteries today million, We megawatt cash financial afternoon, reported for shipped of Good XXX.X generated million XXXX approximately

exited QX. as channel overall we Our remained normal inventory

net basis margin, a later in income, XX% percentage as the financials of will call. revenue our including quarter, into all gross non-GAAP XX% expense operating and delivered go operating For third the we a on and Mandy XX%

customer discuss Let's service.

down XX% Net worldwide Promoter slightly in was QX, in QX. Score from Our XX%

disruptions due average volumes to X.X call landscape. partially minutes, from minutes from higher in to Our the increased call X.X wait installed time

actively are managing out this software times. automation rolling fixes while and weak We to reduce

operations. about Let's talk

capacity microinverters anticipate million million In contract goal from We from X ultimately tax around production X.XX credits. X.X million X.X our XXx per U.S. million the U.S. microinverters is booking with shipping quarter Our our U.S. facilities in QX, facilities, manufacturing units we shipped in QX.

introduced $X.XX also to them. microinverters owners qualify SKU domestic a help PPA This higher domestic adder. per We and XX% savings in content content a to watt for asset to for about ITC for translates lease, commercial IQXHC

this seeing in are for We and amounts traction strong PPA product. the leads

IQXHC quarter. a featuring begin expect content all microinverters commercial as domestic starting our contract microinverters as residential U.S. We well to facilities, shipping IQXX our this from higher manufacturing

suppliers cell to and support XXXX China in pack enough in plans for XXXX. capacity our have batteries

domestically and are in this China. facility using systems the our while We battery manufacturing quarter U.S. inverters, to continuing management in source to packaging battery on at track producing need cell back

Let's cover regions. the now

and international revenue respectively. was XX% U.S. and Our QX mix for XX%,

U.S. the bankruptcy compared more U.S. QX. in revenue visibility regional up This QX. In sell-through were compared mills business, to breakdowns our increase in across customer to QX. into declaring in U.S., large the X% a all overall our was of providing for increased QX. was QX The For we despite our XX% products

compared sell-through to reflects fundamentals U.S. Our up in was distributor market in U.S. XX% the the QX, improving which

compared be batteries own was attach growth continues to California [ installs was up ]. distributor microinverters non-California of our rate QX to XX% of sell-through approximately QX. to now saw QX, In to XX% sell-through the our states, XX% both our close NEM X.X California, and batteries and QX. XX% distributor in compared also for up represents in healthy In we in California. In QX

key drivers rates, we the power prices interest lower XXXX as ITC and Looking higher see adders growth. ahead, for

compared XX% down QX. down Europe our of to QX QX. down, was in more overall Europe, XX% to products revenue set-through a compared The was in little our In

its nuances, XXXX declined in highs, is the growth business is confidence have the Europe economic environment in early Power country every the slow, While the overall has and challenging. the region limited. consumer from is prices

we We are control. focused on what can

We relationships installers. on focused are building strengthening and with

cycle Germany. are lot partners. many are key new market position additional on We us closely in provide products, color will as we this well and on believe rebounds. the We as believe our underpenetrated focused well new significant expanding some when launching for as distribution collaborating growth markets a into of France we our Netherlands, Europe, the I'll with

uncertainty from markets. These transitioning issues solar-only Netherlands, away allows penalties regulatory the residential in which of and the XXXX, increased market which export the plus penalties is batteries expire in by providers. to systems adoption NIM, export the early and avoids energy due solar batteries, around energy of solar participation In is imposed to about

is with the still transition by we providers. in its are strong a engagement this energy While country's we strongly encouraged are early stages, --

market AI to improve maximize lead along with We new our in the software, Netherlands along is which powered recovery to as microinverters are well management upcoming savings homeowner batteries, as well with with and chargers our energy EV positioned to crucial

our France, was seasonality. by In QX impacted summer

many rate us cooling in Overall, France growth the new market management energy country's We heaters. to key plan given products hot for expect a as solar a batteries new for backup our country, low mainly market leadership the charger solar EV demand well introduce and driven for early period by penetration. utility remains water France, in We cuts for with off as the there expected XXXX.

our These launches solar market. that are Germany, remaining. will upcoming largest we In excited few about Europe's a expand reach in product are

June which battery Germany, solution Switzerland, received highly feedback. unveiled positive for in in was has Austria X-phase and Intersolar backup Munich Our

launch. solar balcony nearing is Our IQ

very We are targeting are systems. with a that XXX-megawatt ideally believe this product small and microinverters these market suited for Enphase

-- approximately IQ to to Germany new in was we compared comparative U.K., into QX. sell-through EV bright in XX% spot been Additionally, Europe plan the chargers A launch the QX. has where up

its our IQ to similar I'll countries market IQ perfectly later all-in-one our AI-powered systems, country we We product energy app a prioritizing opportunities, more still solar own in in European portfolio, countries. batteries aligns installer and However, reliability, challenges plan of and management strengths. with to well room the as across faces as are which the introduce There core with Italy, their graph talked single software, home more new series and I entire are many X-phase including Europe, and unique both Sweden, which backup; which for microinverters, elaborate the experience Switzerland, seamless quality, about; EV Austria, this energy chargers, Belgium, underpenetrated safety, IQX a platform Luxembourg, are increasingly While lot Spain, savings grow. and have homeowners each Denmark

continue to the other We make regions in world. incremental progress in

IQXHC and in IQXP India. well ramping Our microinverters are

India emerging order battery the begin December. newer, are power residential installers taking In We in for IQXP with higher in shipments microinverters Brazil, we market are into now watts to XXX preorders to to the this ramping in panels. on support

In XX-year longest the recently we warranty Australia, in IQX voltage higher for limited as started standard input and shipping Australian is all offer for microinverters a DC residential microinverters. default panels now the currently warranty market. this IQXX And

our to guidance. Let's come QX

our in $XXX U.S. million. in We the to range in anticipate million $XXX improvement QX. Europe incremental We are in continued of slowdown business revenue and a guiding

the last quarter. booked -- overall We to our to of similar XX% are revenue booked very approximately midpoint guidance

batteries QX. in to hours of XXX-megawatt ship IQ XXX- between expect We to

in battery increase, repeat uptick that we reflect shipments reduced QX compared a QX restocking is due in QX. well. in is primarily The to continues Our and in not to will demand. It expect battery sell-through QX to doing channel QX slight to

Before and participation now markets. IQ arbitrage, we talk multiple participation software cases, about In the sophisticated new with focused discuss ties hardware increasingly our solution We and Energy evolution more. microinverters, uniquely many in system total components towards parts energy systems. are resilience, Management no grid products, order longer and industry of it the the seamlessly best-in-class manage of countries position IQ to solar-only win system believe EV our around in IQ composed market this must systems current single batteries, including total win. future Enphase let's to use world, in be that All from Our away together chargers and products software VPP to us rate all wholesale is

batteries. about Let's IQ talk

very differentiated to Our an modularity received third industry-leading is serviceability, with continuing generation It by quality, offers XX-year market. warranty well the be IQ and battery power capability.

X% the new are conversion in track pilot battery production management up U.S. lesser fourth We space game The integrated the battery takes to wall architecture. quarter will power us. due for battery in our this and begin in a believe changer fourth-generation on to and XXXX. battery We its be early

a installed cases. collar fourth-generation typical IQ be and highly hour the approximately with competitive addition, $XXX paired reduce cost with will all IQ battery enhanced new use system making In per kilowatt backup, our for for meter IQ us combiner. by system The battery will

have end of countries the the into family and this for IQ by year. expanded We microinverters XX more plans

with particularly are Japan system kilowatts sizes our market. about demand We to for very to government products, well MLPE XXXX, microinverters X.X Tokyo, launch small consumers. Tokyo X for expect our it of for strengths. aligns where making offered its excited attractive especially market, solar gigawatt X we quality in The has early subsidies a complex with targeting IQXHC and metropolitan Japan roofs

XXX commercial between with cabling The further perfect installations for about X-phase talk small IQXP our is system Let's new its microinverter, and commercial IQXP. XX kilowatts.

kilowatts sites positive. and XXX with ship demand quite over feedback the with a an up in U.S. factories U.S. X XX the domestic asset commercial have should for from so far microinverters size ITC owners, content, offering These XX% even drive been of further. adder which average phase We will soon has the increased

and on provide variants, technology. and commercial X designed XXX IQX higher the support flexibility IQX is up amperes by is volts DC watts, offering XX The me handle gallium to powered expected elevated including in currents to and input come performance. power XXX Let for small IQX AC an nitride our market. family watts XXX to voltages, update grid microinverters

the track to half demands. are in second meet on us We a XXXX growing market launch of for positioning

charging. EV into dive Let's

launch charging, EV $X.X ISO dynamic our compatibility compatibility Key to with third-party charging EV as to software energy. control X-phase MID new charging. AC support by OCP excess results solar of are XX in electricity tapping charger systems future-ready IQ control, several this in second-generation well solution. and up making solar XXXXX comprehensive countries charger future, for as enabling billion X.XX efficient features kilowatts market very face costs in bidirectional which more and green annual with Germany using integrates across with the switching a in battery meter charger much IQ European well and minimize We The up with gearing and homeowners Enphase QX, for include X into a to

cover software. Let's

and and Europe grid we Australia. In software programs California, capacity states key during U.S. in market markets of than in Massachusetts, programs, of services programs Energy peak XX in supports markets XXX-megawatt Management energy VPPs to regulated the discharge enrolled. around times need. XX,XXX and Texas in enable IQ supporting across like U.S., participation homeowners with utilities more active These the the Our are demand, deregulated batteries like battery customers and North house and Carolina,

to through markets, software deregulated $X,XXX In providers. homeowners earn energy annually up to enables

As electricity become us rates reducing AI-powered maximizing differentiates software ROI our complex, and payback period.

installer We've graph, QX, to U.S. our an as for a permit Solar as new set discuss platform. including Let's tool graph design in due customers. updated features cell well added plan battery solar

the and the in to coming Brazil, and both Netherlands Solar to Canada, plans Germany, commercial now expand available with residential U.S., is quarters. installers more to in Austria countries graft

me Let conclude.

channels U.S. bankruptcy, revenue believe We customer will first months free downturn. period. cash generated $XXX XXX flow to diligently expect our $XXX of strong the of due industry distribution flat gross QX through phase The our revenue manage bottom is is impacted QX from be in revenue of margins but our increase portion also large midpoint million its worked by a throughout have to through the respect and maintained X in a We ] for substantial earlier approximately XXXX of we to and million QX for with guidance return future same XX% and this [ We slowdown. in to an have the

the and batteries developing and that products year, Over are print strong a microinverters have innovative our in last we launch. global nearing expanded pipeline are of

IQ billion. EV Europe Our our X-phase batteries, are $X new for IQ set to available by and balcony the served charger market expand Solar

IQ for combiner system costs installation Our upcoming is to and battery the significantly expect enhanced reduce backup. featuring fourth-generation

us Our will enable and X-phase markets, incremental our which while new markets. for the enter in lowering GaN microinverters IQX residential powered commercial power boosting are costs

world. to software as We around cater our energy in also to complex are retail excited well as energy with advance AI-powered the Netherlands in markets management energy the providers collaboration

XXXX, prices to are see growth. key improving markets rates, by nice ahead ITC to expected U.S. we and in driven power lower Looking drive that interest adders market higher fundamentals

our system we and ahead. committed grow energized the are should road microinverters coupled positioned next-generation and stabilized share the defend when to and product best-in-class in to the U.S. Internationally, growth best-in-class remain geographic our with reach allow Our broadened battery us for by due solar delivering we market solutions to market well believe are portfolio. We a

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

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

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

of DC microinverters batteries approximately margin gross QX. benefit QX for QX XXX XX.X%, which IRA margin hours QX. Total and XX.X% the compared gross in revenue QX. compared Non-GAAP Non-GAAP for in gross quarter. for to GAAP megawatt million, QX to in was margin IT was for XX.X% Net XX% was megawatts without XXX.X $XXX.X of XX.X%, was

non-GAAP negatively charge point percentage GAAP to goods on and a onetime related gross X.X of margin impacted sold batteries. Our by cost was

$XX.X $XX.X QX gross were operating Non-GAAP QX. of compared million included benefit. IRA $XX.X for million for Net Non-GAAP for to margin million QX, expenses

graphic We continue new service in customer expansion. products, to and invest

restructuring-related for and GAAP compared GAAP of expenses. stock-based assets, QX operating $XXX.X $XXX.X operating million $XXX,XXX intangible expenses, included for compensation expenses expenses QX million $XX of were million to QX. $X.X amortization of million for our for

On was non-GAAP from income On operations to QX operations GAAP for for income million, from million was QX. to compared for QX. compared for $XX.X $XXX.X million million a basis, basis, a $XX.X QX $X.X

for was net to income for in QX million $XX.X $X.XX non-GAAP $X.X $X.XX to non-GAAP QX. QX share in compared of per resulted compared Our earnings basis diluted QX. million for This

for for for million company. private QX $X.XX $X.XX a of was $XX.X share Both to in impairment of QX our compared per QX. GAAP to for investment GAAP for earnings net QX to of earnings share This share an diluted income in per $X.XX negatively related $XX.X diluted resulted tax million per QX. by were GAAP and net impacted non-GAAP compared

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

QX further in average a common our authorized July we As $XXX.X by our part ] share for of of total shares at repurchase our repurchases. million repurchased $XX.X an share price $XXX.XX of Board a $X XXX,XXX program billion XXXX, of Directors remaining million. of stock share [ for in approximately We had

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

continuous to expect plan. anti-dilution We

million million working due cash QX, Capital $X.X operations free from In we to strong million was for QX. $XXX.X flow and generated flow cash in $XXX.X in to our capital million management. QX $X.X compared expenditure for

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

of million, which shipments million within for $XXX revenue to to our a RX XXX- to includes XXX-megawatt of range batteries. be expect We QX $XXX

gross within XX% XX%. the of be to margin to expect GAAP range We

be of before XX% We gross and to range XX% net margin benefit. within with to to expect net XX% IRA non-GAAP IRA a XX% benefit,

We for compensation Non-GAAP to million spend shipments benefit. range to million and GAAP range minus operating $XX the and expenses microinverters million or $XX We our to margin U.S. be excludes be XXXX the units to discrete annualized our and million gross our of compensation excluding in acquisition $XXX and acquisition-related net XX%, million. $XXX million, QX. $XX IRA said X.X at operating $XX estimated non-GAAP non-GAAP of We stock-based pay be within stock-based expense We of expenses between GAAP amortization. to of reliances plus to including estimated benefit of be effective items X our within approximately $XX IRA expense, a amortization. for spent million million

that, for With the open I questions. line will

The from first Instructions] [Operator Barclays. Cho with comes question Christine

batteries. I on guess the start wanted I to just

sell-through be quarter-over-quarter. to U.S. in up sell-through going else? get you are of sense versus the you shipments the split XQ with more And that the for we expect rough Is during in give in because quarter. guide the you batteries restock actually what down everywhere us meant of was You are? a could line XQ? shipments sell-through But a if the slightly U.S. what would to Can

you basically, days Yes. actually I mean to -- ago get told so battery XX we we the channel level. are on a that going light, healthy channel and to is the

problem that now. have We fixed

the is of shipments same. our at equilibrium, and think basically, should into the therefore, out So shipments our the which -- of you channel there the channel are

to U.S. should why which similar split that's our with the think you of should hours. a think of batteries. that is for up up, split roughly line And about revenue So you number XX-XX, XXX- XXX-megawatt a in

just was And I all quarter-over-quarter the is in Okay. up think you U.S., channels. the XX% said across in sell-through revenue that, follow-up a and to digits something single

was all then MI as sounds sell-through was your than restocking So we here is batteries we what on as the just as here kind of And Europe Or any well, your just there about think side? was worse disconnect sell-in like the it mentioned? there. the

maybe assuming assume guess, up So And XQ? of how inventory we weeks I what there? you're for went should

Right.

why revenue QX. in is We under reason So by simple. stopped maybe increased shipping quite XX% the our

level. our therefore, normal to revenue So increased

we So weeks are healthy maintain equilibrium, a basically, and are how at at we And place that's are hand. a now can in we sell-through U.S., on sell-in where the matching.

XX we not always the For crossing to and us, between number instituted means XX that on discipline. a -- which weeks hand have healthy X weeks weeks number,

can you increased that's sell-in why the that XX%. revenue. So That's revenue the see

channels, QX despite said, the both And the very sell-through compared bankruptcy in U.S. I QX. increase declaring customer our direct is in in was a X% was channel news QX. large channel good distribution up to this all Now the and overall across U.S.

If channels, and for across was healthy at our both XX%, you microinverters up sell-through was up just similar batteries. both at well general, respectively. the outside as as the -- our XX% is look sell-through our sell-through and for California distribution California and at XX% in And U.S. in levels

a Europe, slightly it's In Europe. different to Coming story.

Our revenue have again, products sell-through we XX%, to are down was the react. our down because when discipline learned by we once have overall

have We to react.

that bit last what We quite happened a shortened year. cycle compared to have

sell-through. to continue ship this Europe we even with reduced So under in

moment will extremely And about so And Europe little bit our our we not quickly. weeks down very come weeks are but hand around, we the on are on in a hand things is and turn disciplined high, that. when worried

cautious our why This are in We Europe QX, for pushing is QX. and we channel. are in into more incorporates guidance slowdown the a not

The next comes Oppenheimer. with from question Colin Rusch

XXXX? you're getting traction should you these a of like a bit the bit as those? sounds about think your with It strategy evolving little charges. sales of get the attach little into on how about Can rates vehicle And trajectory we we talk around

Right.

chargers, them. the market. ClipperCreek and market facilities X we and Guad. service. our where share you unconnected the as On then We was have to market -- They are end markets. WiFi U.S. some we charges. on is product. contract in did -- They what had also in manufacturing the that, course, basically, the excellent EV we took chargers, moved One, U.S. of essentially We the made the towards not in did did What Those call charges the surgery we manufacturing XXXX. there a interesting bought high-quality company excellent called other They reasonable is of Europe a

time our the IQ chargers make we Smart last to product. that year, we in And So took U.S. EV introduced

also IQ market. and are In in a the XX very Europe, meantime, that will furiously chargers EV where interesting countries is nice high. introduce too. we've market been adoption Europe working we our There about is quite the

bit for are U.S. a $X.X And features SAM, chargers available charges. Our charges I the there are is several EV about billion. there market are these in They different served smart And as all from little mentioned, the Europe.

products, you of charge EV the charging power most in for example, chargers competitive particular with when X EV a they solar. chargers. phase do, minimum example, are from of EV green order chargers, to these For the many need And

the and phase, deal. with it enabled power a at got then up. lower the of green innovative switch where charging has homeowners a big course, phase product to solar solar That's to very start an view app. systems And Enphase can the integrates, well feature when from battery it with solar enabling Our everything X energy single and ramps from

directional is the charging of big thing there outside. other charging. That is is are ways charging bidirectional take inversion bidirectional inverter bidirectional about there outside. no can DC external and EV we you means you in bidirectionally charger. is charging is there The that talk interested by AC means care AC X DC

IQ That car, XXXXX. to like charge So latest chargers is ISO the EV the things not of a to our is can can charger get and the is product, standard possible the a the where standard ISO EV comparable XXXXX which car, called state today. it of talk

evolving. charger -- capable is bidirectional EV AC AC This see we So standard could bidirectional doing that. of

as are the grid. we as AC it in inverters I chargers, for we embarking mean, -- to on needed. the car connects for outside, takes before, and input you from While bidirectional a DC and DC well charger, bidirectional sorry, as charger said planning, then U.S. yes, bidirectional basically it the have I the Europe AC are That and

interfacing that are the It side. X.X kilowatts. one we design DC is game car is is AC Each other vold inverter -- on side, design. interfaces about on that's which building all So the and that X,XXX to to

kilowatts So same these And microinverter architecture to to built kilowatt X for have that X.X in are the those inverter example, have we will inverter. order inverters charger, of bidirectional you have. X.X XX-kilowatt according --

advantage of charging to thing down, DC the AC charging $X.X and the then is and most in in work on market introduce Europe, available big U.S. us for second So the seed both generation billion important the EV in IQ zooming Europe back XX of bidirectional right charger into take countries bidirectional now,

XXXX? the you Or size you're XXX you address able just please. Can and traction are on in Are commercial the you of give smaller to able kW market as then systems into side the XXX the in still that initial systems? update quickly, generally And into Okay. us this to very an get commercial systems at get point? the the on to you

Yes.

IQXP commercial-specific XX between the benefit microinverter. It's commercial system. perfect Our is and a kilowatts. XXX small cabling solar for installs We X-phase with

projects, As slightly you know, they the have cycle commercial longer a time.

product has the So good. X been We of months XX traction about couple and quite days ago, reported, think, this we start I sites a shipping ago. hundred

starting are ramp. things Now to

We are XXX over sites.

In if per an I immediate on the The sitting can It monitoring, that XXX now, the can I what inverter roof. It's value. That's the working. can fact, in out is power installs Fremont I'm the XXX building it. panels. right higher I focus monitor not have system. I immediately the panels monitor quality. find panel it a production, uses on XXX-kilowatt nicely.

is this XXX watts. So microinverter perfect

So this. excited we're by very

One gallium power of going be we XXXX. market, half XXX to volt address That's addressing out of low which design, second a with the doing are couple are high yet in is to coming we things. for with a That aren't nitride going product We ultra the IQX. suitable is cost.

And you additional owners to that an is XX% to the shipping benefit an U.S. inverters the X get important These that content of contract. micro are enable going commercial be phase the increased should where note that from domestic second the domestic asset ITC. thing

demand. think that propeller we So also will

excited about So we that. quite are

from comes question Mark JPMorgan. with the Strouse And next

big lower. a a wrong then, RE back view been would that of XXXX, interest optimism be plus, a based looking bit pretty hearing there's on spike just in would we quite be of Since Going direction. rates to rates the in were kind into

with pause curious, Just had your kind industry? you've some the if recent conversations very in that the of of to creating kind customers, any extent of that's

are to least our I data U.S that told gotten dollars in NEM working the is direction about Well, looks case. Outside California -- used of I at both longer we example, no I being some drag the solar U.S. the sell-through sell-through X.X storage the dollars in data finding -- are our economics. in our talked QX, in terms things as data out have used outside for fine. right X.X have gotten -- In you, MP, also they and plus mean, for a California, NEM mean, the headed of

monitoring have XX% that -- in adders. of installers rate We about since demand are are, is watt And reinvested it saves provider prices of front. increase. to X things additional deal are the I've to weeks it be will going week. to helps course, ITC XX%. -- the better do in plus, course, on things better $X.XX week looking our incrementally contribute U.S. we sell-through data market. further up XXXX been think can of domestic are the things $X.XX we cuts, into the a the into are is be The the That back utility the to big an because them a or that it TPO make increasing on or consumer And continuing RE

you what towards the XXXX seeing And be growth still course, for overall the said, but I'm seems of data disputing to so the -- optimistic we market. not in are U.S.

real to great And then Europe. hear. That's quick Okay. on

headwinds, to some that Adding You all but XXXX appreciating you of of about currents for of kind not new that cross care do what industry do year great. might offset Europe mentioned you market that comment kind Enphase? be generally look thing. out. Fully guide color like by up, speaking, products would and But the the any a just with of some of kind the of expansion, maybe

solved. is And great Yes. to lot are I Europe getting bottom some Europe there. QX at about affected really key mean, uncertainty. due we been there might a we think nimble slowly NEM be which And stressed, think mean, look, little like the have is a I are very but markets, are the that -- we which

what's solar-only plus play. Netherlands but is plus confident are a going We surely as happen a to go we to play that shift from XXXX, software going is to into slowly solar storage

with in I alone. Netherlands just XX working would already providers nearly, energy are We say,

of Some need very meaning penalties. lot will year otherwise, they the for curtailing, PV for a them, example, solar curtailing incur of times where during small

and that point, it transformed need will opportunity market there that reshape have I low to think be but its we a So bit, is market. to a tremendous at

Now have historically France we the well. country very done is where

hearing, next And to But have things some everybody headwind back up part We basically, end come of early the are year. as XX% what share. due France, are approach the over the and there strong, rates be expects in XXXX. we strongly utility we of to there could fundamentals

there a Germany installers and are what we self battery with basics what has DAC our products have regions. of has $X again, adding is, those very And similar the is Switzerland there is general introducing -- doing for adding U.S. is X-phase available been served-available few new And Austria are that happened regions. weakness. There backup. That's to market have the new bankrupt, market we a DAC gone are to in been Germany, stick portfolio. who once the products billion -- to and

solar, are And Balcony Enphase play we are is ideal we ideal, small very system. which is talking Then about in to IQ new that brand for us.

way, already products Germany IQ our have of by as charger. only like, and other all well. solar, their Austria, introducing But is solar versions Balcony So XXX for in France, own to the is Balcony we all solar not example, places, megawatts. talked of restricted about Then be I and EV Belgium, balcony Germany, many will they those

So we stopping. are not

are underpenetrated Europe. in We

cover. We have lot countries to more a

releasing a focusing few channel, installers tail getting are with -- is both the where areas into with the which the working closely installers. can We top-tier we new on plus regions, managing the control, long products, new

we rebound the the later. or to doing things, So and sooner we market expect all are of right

from comes Lee Brian question next Goldman The Sachs. with

revenue guidance. to guess you're related XQ. both at flat two, the I of midpoint guidance, had -- I the for

and X there's storage, drivers, think Europe I right, SunPower. battery

then Is You headwind. seems XQ? to SunPower in $XX XQ. have And still their like going you. of for megawatts a existence, it's storage. be been us in million guidance Because was it's $XX million than revenue $XX down. then million gave Europe $X might quarter the it And end a doing battery you're a similar of to million million for but that's drag at the That less to XX $XX saying

And XQ? at quantify follow-up. then the question X a least of I you what headwinds kind seemed growth the sequential meaningful to is, really, So into had of help can buckets for be

XXX- better -- said. it our little we In is the Yes. you're million. XXX-megawatt told that's are doing of XXX-megawatt headwind And that, hours QX, in QX. range you versus we $XX can on -- the we as a And talking and That's the doing about are guiding that see a you is little -- million battery towards. to to $XX better side, is right of what hours. overall microinverters is compared I to a sell-through SunPower

all You're most that. installers, correct QX, we of be that don't all expect of and get the working we immediately the but that are come to should we to or able coming with about And in in quarters.

got sell-through to And has also weakness expect microinverter Europe destocking. your battery a fine, doing we channel except question, upside sell-through. The So is from that increased answer to continued for slightly onetime compared

that's helpful, Yes, super Badri.

like out these content. you at in question same the all up sounds storage, that battery sales, the I up some thought or stripping thought, are midpoint. less X% to And it the guide in had Second Europe, price microinverter cetera, saying you're SunPower, XQ on et U.S. you line other like domestic increases would about so strip have But going the factors also, be of you U.S. seasonality have

we So can in those a know I or outside show they're would just of to us But that up help expected about. later. more some into actually you headwinds they're showing tailwinds going all I talk maybe XQ bit don't these of the if you XQ have talked up to through other if

price U.S. increases. content, domestic So

any Just general around thoughts that?

product are you do like The those generally content generation we system. sell-through increased are even that domestic The drivers. for it's any we expect we driver. content, we And Batteries, we a the when said, domestic fourth be microinverter expect, and think is do we driver. increasing stronger in have is prices from to The Yes, new think to QX be have is -- adder. product yes, there content increased an a what extra domestic and U.S. a is not the I strong, going on 'XX our

would So covers little characterize which are right. bit -- is way you're microinverter The that piece. Yes, it but weak. other if as healthy, I the generally a areas it

comes question ROTH Capital Phil next with Partners. from The Shen

back May, million you a on $XXX in in the it maybe sometime might the you've And on getting to First -- rate. demand to you hit in about past, run in sell-through talked basis? be one QX? million can that in is 'XX, quarterly could thought $XXX now of time more it thinking when it terms a your Is through What's some QX. half? Or be back

things Yes. we there. have about and a we I that, talked look, mean, few had

And few a some mentioned installer big headwinds. had we've a one. I had bankruptcies. have We

U.S. in Europe story. an different right entirely is direction, the proceeding While is the

fact that's months told meaning U.S., So the And we I U.S., basically, as But encouraging. the very you, And distribution their matter the European that's Non-California anticipate declining we reality. business in one with U.S. distributors like as installer what right the in distribution few U.S. numbers California also -- didn't for further. with sell-through a bankruptcies, of the anticipate didn't the back, the reality very encouraging. is is in the well market is now.

we who customer expect large guide those revenue, Of don't our vectors. but a We XXXX, to revenue some growth get our we course, are bankrupt, back. lost customer -- that went

We our are generation QX. be to introducing going system fourth in

for expect only grid basically us $XXX reduced per competitive to that today, the for are by which system hour, making fourth cost we not generation type, but backup. kilowatt We installed

by So shipments our example, QX batteries, today, for the from QX on to XX%. than increased more

a installers to to tight up Our installation X.X, systems what And the complicated no with to solar we manage. There is sell-through no is -- is need wiring NEM continuously installation. grid care is climbing take of. loads like there. treat to do There for

on and the the hang to to they with solar, IQ to hour XPs, combiner X-kilowatt along batteries the same AC they routed battery done. they're to So combiner therefore, bus,

quite us. that is So still for strong

we have Now the with we have the combiner. have system, fourth-generation color, meter this where battery, the enhanced we

be $XXX costs. will be eliminating component well cost We to the We'll the labor, expect system as and both cost. installed in eliminating save as the we controller

that of us backup. terms unleash So in a for spurt growth of will we think

in vectors the the It basically, interest lower and So utility U.S. rates, sell-through. content. is are higher the rates continued the movement domestic in

a the little markets. but bottom fundamentals scraping In Europe, of The some clearly. bit our very wildcard there. are outlined a think for now, the of are and in QX we right We it's QX plans

with We Netherlands. in right the players are working

available We increases market are working Europe. for Germany, for have served we

of market $X balcony relevant billion have of solar the for a the with Germany, specifically relevant for available also Austria We Germany, a for Switzerland, served most lot products, increase Germany. and is X-phase backup is and

those all we in line. have So of

grow. only for waiting market give aren't we So a qualitative to the that can you I

are We working are we products our introducing with installers. new

stuffing most we globally. that are channel We are not the all importantly. And of doing

Great.

Okay. Shifting to Powerwall Tesla. X and

meaningfully more and work ramping demand a power it suggests is how your I you substantial your the many is laid out and of just widespread. X that That know and up string is Our said, I I Powerwall know inverter, know customers better X substantial and all volumes. advanced. are technology

resigned lose? -- with to that you are telling box new your when larger but you volume much it's you losing How battery what think and the your are you may and important. Some it's know to that you? are tough of then especially do And are be much a planning how So share about sharing to talk think that, until out. business X? to I question, they shifting to Powerwall by me Powerwall surprised customers of is common comes collar I X, your meter you customers

Yes.

in that is That's data which which we of the to for area continuously, point I can we have share. third-party we highlighted we data which those reports. And -- And are probably California, sell-through our where is number talking do data you're the -- So all thank the key front me, holding of one. react the The the second have we question. basically show point, basically about. all you in

there. California in is if on our go hand an microinverters Enphase grid-tied fact, cost and are it sell-through batteries in battery each installs our because our is both I is on installations other. is California, before, like California. And quarter-on-quarter. tide batteries, see makes XX% talking grid not The what installs, about I to up cheaper they as it with of said, sell-through is our And higher. and you sense, that told hand in you in installs Our the cost, -- is installs in XX% are install not are XX% you

We are talking XP about X batteries.

We it talking about bus. AC hanging the off are

so same is have extra box that the We not it's combiner box. an used,

first quarter, fixing own is That that kilowatt-hour that compared wall there So market. grid-tied battery. we now controller of probably got. system to XX XX% And used that of our we going got release space is battery. the has our battery the there battery and the hour process that latest to be That's are problem. we XX-kilowatt And a why greatest to is a market And are lesser no in in before.

is there color. the Now

We compliance. expect -- color the It in is development. done is

approval We in expect QX next utility few utilities with the to months 'XX. work and get in

combiner, substantially storage a for has -- backup. installation with with are of battery, lot going way, So rigs farming, cost by of enhanced bells neutral which system color and our hour got and kilowatt with our a The down installers is the $XXX the that typical has love. which got per the by

tight that both problem. solution will in need be that and up. focus that we markets as is what market to will key to back we QX will the have happen as solved XXXX to 'XX. And for markets contribute We will well basically, So grow in get a us then growth. And with in

The the system that a XX% Enphase microinverter, When there from X% side XX% of is on have shading, is is things, point anywhere which tell production When the of there has you IQ is audience can system which power X the the for will I the you battery especially numerous, where roof between microinverters. other There the to still working, already got the in benefit power but microinverter get -- Power know, the got a fails, failure. assuming advantage, the string our are is Every production places. of microinverter many still production. inverter and working. no of advantages with the reliability. with production microinverters. system XX% fails, XX single With have battery we we has Enphase,

pent-up and no So failure. single reliability

microinverter on XX years. warranty string versus XX on -- on years is of warranty Warranty batteries years is common XX inverters. is warranty Our

on and the basically by batteries. firefighters which because loved microinverters roof Simplicity, to telling They the roof. the way, by do firefighters. the had of plug-and-play, And recommend many the just U.S. do is very obviously is me FEMA, easy AC I've that. on in in DC authority Low-voltage

other for If the situ In the support. down -- between not wall. customer off complex problem, repair for answer install. will down take phone. supplier weeks having means we a more in and never is situ. do and Enphase them, We a logistics So the boards versus batteries than days things, XXxX being is there replace We few not

and keep Serviceability happen. a doesn't service. you spending batteries service of you that When is very have crucial. your problems, you of have fleet on All time

matured, you are made way, know, getting batteries for taking by worldwide industry West. this. in You a notorious architecture. the the is still solar but is mistake batteries an Inverters, inverters, And

all AC. AC Everything We you, told already in point architecture. AC believe architecture, no is a as of failure, covered. distributed I which single

is chargers, our storage, our We have our our solar, chargers, bidirectional recovered. EV anything

forward. with those we basically, going system, that going very we be are solar fourth power competitive a for generation the our So all I strengths, And plus storage. that market the batteries expect of backup. all the to these to outlined share of things increase homeowner on basically plus are is gets, on both example, our

The question Jordan from with Truist. next comes Levy

I'll one. to stick

XQ approach pricing then the in -- particularly pricing the see I especially? lot how on any on consistent Europe, that just to with I there's basis. think change of think Europe you you've mentioned But concessions a commentary, strategy micros? but overall, been some you're pricing thinking you as all gave price-to-value pricing heard around weakness you I about in side, pretty And if a Just in the wanted how correctly, for if the

we did not did Pricing, anything for Europe. mention I

have it I you or heard So you think must it. misunderstood have must

we team value. daily a instituted price We sure basis. Their something on that job not we make So dropping XXXX, manage pricing we always a anywhere. about there to team and on in are a pricing of pricing people. is is But X is

terms is we where an ordinate materials system. understanding of that the the there can time we spend sure bill in save in they full system, therefore, to consumer clearly areas for of of -- So money make amount overall the the understand

customer, very So that's loyal And expect not them. diligently. price, And help, is little needs a for because that us business a bit process. But if event, of but we that we a a nonevent I'm help business he it never we that is saying we an dropped there will to not is do sometimes it process continue.

The with James. Pavel Raymond from next question comes Molchanov

prices power cheaper kind a as high as as ask well year ago counterbalance about Why R&D lithium Yes, a electricity? pricing of are I down XX% by against Can Europe. level down is is module that versus not acting

I the -- as market a a which was headwind. well part again, into that being look very by the is you grid think Netherlands, was uncertainty the before, was that of at case the as big clear of Raghu. this we exporting it NEM believe solar think homeowners by In the solar-only We penalized reason for it country country.

of Netherlands, there obviously, addition for we by really all things we around so market And that the to doing the are completely think batteries. right turn

good a plus very way solar their improve is where can a into electricity market homeowners So to in traded be batteries ROI. for the market energy dynamic

the also an that in I general, the not before the also urgency was urgency power during we and Ukraine well. that is economy in that crisis was during general, the is steep gone. think In there know increase doing the is crisis, And then

the be products could we to billion But for the by specifically Europe be SAM things, where And of So mentioned, expansion to bottom of needs get slow. Europe for back introduction the kind that possible seems the that a of be. Enphase can us $X it catalyzer to our all there. new and the with be could Badri as believe, of be combination you XQ why -- it's are reasons those

up with no one about follow has yet. I'll asked a India, about which quick question

to product Are very think going be launch Indian new I there? of the price-sensitive market. You a market, which recently competitive a as you in typically announced

Yes.

is to segment. India, know, about India, didn't will Villas, if battery you a parents, shifted all you single-family many you this batteries today you homes, system acid the and And Let power day. lead lead there And That's basically. a lose There why how premium a to UPS, lithium-ion. we know me battery, are tell acid times are. the X in cater where -- backup

battery hours Indian And Indian use and introduced battery. XX-kilowatt a It's this it X-kilowatt is is more a that for hour high-end we mainstream battery our So may homes, in than because day. it are even not perfect shipping, we India. India families,

backup. know with backup a battery this won't switch on switch. running And you basically, backup makes even comes So -- that you're

the where a couple value build anywhere switch, many of to some the -- so can home and independence. solution for energy provide build And They of the it into of can home which it the home million beautiful a from they and raise cost complete can of dollars. the builders, the $XXX,XXX into luxury it's

So the high-end is we are the of markets. problem, which But ramp. will we volumes and we power shutdowns, with because granted working is is a course, have And to a these it and big India for builders. have see, beautiful market there solution a

So has also solar a a of lot India market. -- it's very good very,

systems, small systems kilowatts. for for incentive program new and programs X a X there's X, very small big in Now a

so those market perfect are a market, India. all And for perfect

We market. bullish about that are very

Nassano from with Dylan Wolf comes next Research. question the

specifically I market. the just to comment market slightly ask wanted on question and from the a just angle share TPO different

on I just kind that's incremental And to had identified in XQ. an in how take specifically kind playing of want that as to you think I opportunity check share of out.

all with providers. of TPO work the We Yes.

And with share, be way even built is U.S. XX% relationship than by working the market more We have in to have a market everybody. the we share everybody. our great with

work again, with TPOs. a are us are And of once long all all clear. X we by domestic it of them served installers, not tail Tier funding. X handful on installers, And those installers Tier now So installers. with And was working being of

already domestic called IQXHC. that mainstream now. content is are our domestic increased with shipping microinverters And on We content product right

domestic Soon, we in with shipping content batteries start November.

and -- domestic of TPOs. every if clear with reliable each one they those plans very So now supply that right we basically, And are if people are they working have are there of with for content, a domestic for looking because few

one can I in squeeze more. If just

channel past of how we But managing channel about earlier should looking in just get the to your fourth ahead kind start to call. covered shipping battery You mean, you kind the prep strategy I that? of XQ battery. think ready the of as the gen

things need Yes. you more to There is as we X a batteries lot is introduce note. X, into One regions.

example, few a Germany we in as regions Europe, including you, I in told are even. For underpenetrated

third-generation X-phase the the the volumes. that our volumes. increase of going And about drastic going into And we to reduction, come installation In talking that, like going many is So bill in fourth-generation going are materials what are battery. U.S., said. battery Europe is to going switch and battery that's It's to in the going battery. introduce to Germany, into increase countries costs to batteries to that's the result we I still a to more

world, rest for is tell because we shipping to of for you bit why because, the inventory third on a the still we little will fourth So us I did generation generation. the that the easier to therefore, and transition ramp have

any So not we that problems to the in don't to managed hard we be transition. and channel. And transition any expect need have well leaving

America. Next question Bank comes of with from Gosai Dimple

sustainability impacts and about domestic product do the you this is understanding the higher in of pulled? how that to forward? my counter So helped ASPs margins. the costs ASPs a lever these going benefits gross Or IRA manufacturing think increase you mix and Was on

it's increases cost XX% manufacturing mean by XX%. times many in to the our cost means quite right? I Yes. The simple, U.S.

care $X.XX is are cents you $X.XX back, value at each taken if $X.XX terms be that we look picture, can of of that products what $X.XX various we the is in to and of watt math. sure all might of that that few the as big ways installers. to cut it. make choose given therefore, of somebody. So a that doing can And to take the we TPO are be creating But adding will that's to pricing. invested be watt But be the for to There

that are We generating value.

generating are domestic We content. the

do expensive. to dollars is manufacturing in a because a taking U.S. the more little are few that We

We generated. there value is still lot for And those covering a costs. being are of

Harrison The next Piper question comes Kashy Sandler. with from

of dumb occurred was But gaining So because in in bankruptcy you aren't distribution from that XQ higher hopefully, and distribution one. do customers is much SunPower you your bankruptcy. SunPower? a isn't than the one, distribution just growth you're know my highlighted share actually the the because and -- first that channels growth this How in seeing

for We inventory. for and installers don't. the is that takes typically But time off what to some period we too their time adjust installers know is their this, plants, current it bleed short to

in projection is with our is some be them. the there will through come through QX. is of good well. they from will the working who QX installers the we good come channel. very Majority all onwards are installers So will of news all us through almost know news And The

We them, and plan making all ramping are for meeting with with us. are they

IQX cuts this some thinking you passing then story on some out down it's -- Lately, really just haven't are of was quick been to returning to I'm inverter whether customers. out going content. potentially or year of the to A passing potentially of old just cost driving on cost big the later customers? your released and initial after domestic just your and It wondering, a that inflation, part costs taking your your the on duopoly, And How the a side. being of and start just just costs your year with about follow-up. And the seems days of of tenure, like there those lot meaningfully. back year

our if IQX, desire cost aim, installers. deliver watts look Basically, the at Yes. same increased to you our is at

that, price So nitride. the like gallium we product that which appropriate utilizing like is is way technology would advanced

microinverter And power possible? in is our IQXHC. to and called describe able simple you with butter achieve high bread improved to that how are today, factor and the I'll for -- Is form just We change example, microinverter a cost.

are volt volt have FETs, feds. AC We X transistors, which XXX XXX silicon

you've a in seen transform transformer our microinverters. also there, own big the We have that

come if can then replaced BDS, increased getting X switches, at we to GAM. will fits. X. by the GaN we -- car an -- be bidirectional X the ready drastically. megahertz If by a happens them in and come are run going frequency, the a at transformer Now fets run addition That's down And X transistors all will is become bidirectional GaN to we way, IQXX. can can factor passes cost down high frequency, at we of components many in that to what sudden, drastically them then form run

thinking. So that's how we are

got value power reduction. is watts, buy cost next like that XX% per approximately our is XX%, will more XX% for a them And similar We efficient. offer microinverters. plan are like higher. IQXHC of they And XXX watt the watts. that's product, for IQX a release to component that sure of thinking overall in We'd in today, to higher second year, terms will make to is installers given the we'd thereby give price, have on of installers cost which XX half much

soon we below to for embedded system $XXX kilowatt well back I market And told box. installation properly, you cost reduce our costs a longer with Cell and According you are already study, in about batteries. cell no neutral the are which continuously farming will the plans batteries, to the cups drastically Now pack per designed going with a down. hour. back meet Battery costs going be batteries, complicated are continuously down. is able

You We only got some the storage, battery. we load meet been combiner collar. It's both EV. solar, meet a the not a works that there with Collar We It's box controlling. concept. is new need Then time. need

are trying integrate. we to So

end trying -- or or the the at to X are go make to X X down X boxes We like day. of X

I systems storage. microinverters. side. talked on the that's So about about I talked storage

our how our by we breakers balance one going for Balance What day eliminate in example, can Maybe is convert, system systems. do? combined also we eliminate can of how path. Then can to the boxes solid-state looking combiner mark. at we we are can we of constantly main

are looking longer and something be of out take at there to We would potentially at dollars several no that, because that start. will thousands need

we GaN technology So these battery technology. innovate. on, in focused it's that's almost and and what will all are to of technology, we cases, technology, end, breaker the is continue

quality to by when right? to the charge when the software AI-powered about the grid, to just being really also improve sell buy also software discharge from the homeowner's can ROI very to And the the of Software, battery, intelligent to battery, when software, went the grade.

homeowners hear end. the You're making at real-time what decisions ROI. in software also about about the That's to care improve we

control system panel We have the homeowners into also and boxes hardware built that to upgrades, power our main software software technology combiner can avoid again, improve technology, applying ROI.

are comprehensive have started but we systems we solar to now. looking now moved at So We with only, systems. energy

on continue what at drive to and we're so to doing there And have to all numerous examples you down. elements at costs we system that these And of the look bring how cost are itself down. give to

The next Mandloi Mizuho. with question from comes Maheep

the one Maybe just one on IQX quick timing.

or residential? said expect year. just then, you Is of when that the residential the half commercial if next do you the for commercial second think launch? and I the

of, We'll start microinverters small XXX for in have that volts, we a us. volts and XXX with face Phase that watts talk building of are the in which half Today, second of of we of any we commercial XXX volts. we will schools expand the that are XXX. XXX can them volts, of about, XXX. are is we've as think XXX we small fan the market, address XX% that the we which going XXX And are apartments, brand-new like market -- need commercial heard churches you and what XX% heard only microinverters. consists and to But small-scale take watts They restaurants, 'XX. And addressing care X Commercial will power. AC businesses

example, we for -- watts. Following be high-power are Similar markets, in in for XXX-watt a need example watts in markets, X India, Europe, Similar is There other and to Brazil. for is very we immediately there. panels, will panels about. will we XXX that in many the residential the microinverter flavors power introduce residential Mexico. One that, XXX emerging XXX for need that we talking microinverter. And the will markets residential And high follow. are XXX-watt In U.S. while emerging solution. solution, our

XXXX. to expect we in half introduce it of of So second all the

or it. use any you that now. billion or on other forward $X.X how to the any here? just thoughts deploy Got And anything cash, almost And buybacks have on going

look at before, making we enough at the of -- line of whether line, X whether whether it's look I some contract it's expansion as manufacturing new We a have capital a first for sure priority. factory, said we Yes. business, One things. is it's

M&As. obviously looking at is priority Second

are we quite management example, software. in interested For energy

and We AV mainstream, is chargers they solar integral are on bidirectional basically also make interesting looking EV charger at batteries. part charging which as things will of become

So we are looking at that.

there We for are at is us. commercial scope also opportunities batteries, looking and

casting many with course, high. are look net. at. macro, very we a our standards of companies are are wide there But this And So who of

think buy us. not will companies We with that we fit don't

are we selective, them. So are we very many but of at looking

the So one. second that's

do. then on third do we over, expect if systematic and Board, the we cash a enough few We've And there is in consultation the last will doing be a opportunistic systematic and left the is do is quarters, been to especially buyback. when in pressure buyback there can with do the we whenever some we so stock,

Julien the Jefferies. question Dumoulin-Smith comes next And from with

I'll make here. quick super it

mix of domestic percent XQ XQ and the content the SKU, expect XQ, what's U.S. Just in product? what for you

ramped. not has XQ

So estimate, estimate on. X. is something ramp around doing XX% is there steady a XX% to our our from I close And XX% to and anywhere XQ, should say,

Canaccord. from question And Austin the Moeller with next comes

Have tax concerns residential the new would XX% years? or have a U.S. how out do by you affect IRA your -- -- in being you expectations next Congress year? in the new And about any changed a credit presidency for the growth that

important for the market. U.S. So obviously, an ITC is very

economy. bad gets general if So general but believe would be the for -- also I will be it -- the this for think for the at good that be overall bad disrupted we the it market, not stage, I for think would that

the vast at of of look homes. the be demand met. matter met fact all this to That as the demand buying in If taking substantially center And the demand a is renewals. going majority place has the People being well. heat We data The pumps. of by EVs, substantially. you is met know immediately demanding up is demand are is up all electrification by

And And All here. of ITC has created a going for IR come lot back hit the job is here. a to any is to everybody. bad XX% be the manufacturing so what

very, of going X. very So ITC at maybe away we low, expect the being probability

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

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

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

may now You disconnect.