Enphase Energy, Inc. (NASDAQ: ENPH), a global energy management
technology company and the world’s leading supplier of
microinverter-based solar-plus-storage systems, announced today
financial results for the second quarter of 2021, which
included the summary below from its President and CEO, Badri
Kothandaraman.
We reported quarterly revenue of
$316.1 million in the second quarter of 2021, along with 40.8%
for non-GAAP gross margin. We shipped approximately 2,362,401
microinverters, or 796 megawatts DC, and 43 megawatt hours of
Enphase Storage systems.
Financial highlights for the second quarter of 2021 are listed
below.
- Revenue of
$316.1 million
- GAAP gross margin
of 40.4%; non-GAAP gross margin of 40.8%
- GAAP operating
income of $59.4 million; non-GAAP operating income of
$77.2 million
- GAAP net income of $39.4 million,
non-GAAP net income of $74.7 million
- GAAP diluted
earnings per share of $0.28; non-GAAP diluted earnings per share of
$0.53
- Cash flow from
operations of $65.6 million
- Ending cash balance
of $1.3 billion, net of $200.0 million of common stock repurchases
in May 2021
Our revenue and earnings for the second quarter
of 2021 are provided below, compared with those of the prior
quarter and the year ago quarter:
(In thousands, except per share data and
percentages)
|
GAAP |
|
Non-GAAP |
|
Q2 2021 |
|
Q1 2021 |
|
Q2 2020 |
|
Q2 2021 |
|
Q1 2021 |
|
Q2 2020 |
Revenue |
$ |
316,057 |
|
|
$ |
301,754 |
|
|
$ |
125,538 |
|
|
|
$ |
316,057 |
|
|
$ |
301,754 |
|
|
$ |
125,538 |
|
Gross margin |
40.4 |
% |
|
40.7 |
% |
|
38.5 |
% |
|
|
40.8 |
% |
|
41.1 |
% |
|
39.6 |
% |
Operating expenses |
$ |
68,401 |
|
|
$ |
61,563 |
|
|
$ |
37,533 |
|
|
|
$ |
51,696 |
|
|
$ |
43,699 |
|
|
$ |
26,024 |
|
Operating income |
$ |
59,400 |
|
|
$ |
61,386 |
|
|
$ |
10,854 |
|
|
|
$ |
77,165 |
|
|
$ |
80,232 |
|
|
$ |
23,700 |
|
Net income (loss) |
$ |
39,351 |
|
|
$ |
31,698 |
|
|
$ |
(47,294 |
) |
|
|
$ |
74,676 |
|
|
$ |
78,702 |
|
|
$ |
23,549 |
|
Basic EPS |
$ |
0.29 |
|
|
$ |
0.24 |
|
|
$ |
(0.38 |
) |
|
|
$ |
0.55 |
|
|
$ |
0.60 |
|
|
$ |
0.19 |
|
Diluted EPS |
$ |
0.28 |
|
|
$ |
0.22 |
|
|
$ |
(0.38 |
) |
|
|
$ |
0.53 |
|
|
$ |
0.56 |
|
|
$ |
0.17 |
|
Total revenue increased 5% compared to the first
quarter of 2021. Demand for our microinverter systems remained well
ahead of supply in the second quarter of 2021, as component
availability continued to be constrained. Our operations team did
an excellent job of navigating these component supply constraints
to best service our customer demand, while our sales team focused
on managing the channel and working closely with our installers and
distributors.
Our non-GAAP gross margin was 40.8% in the
second quarter of 2021, compared to 41.1% in the first quarter of
2021, as higher logistics and expedite costs were partially offset
by disciplined pricing and favorable product mix. Non-GAAP
operating expenses increased to $51.7 million in the second
quarter of 2021, compared to $43.7 million in the prior
quarter, primarily due to additional investment in R&D and
marketing programs, the first full quarter of consolidation of our
two recent acquisitions, and increased hiring. Non-GAAP operating
income was $77.2 million in the second quarter of 2021,
compared to $80.2 million in the first quarter of 2021.
We exited the second quarter of 2021 with $1.3
billion in cash and generated $65.6 million in cash flow from
operations. We repurchased approximately 1.7 million shares of
common stock for a total amount of $200.0 million on the open
market in May 2021. Capital expenditures were $16.4 million in
the second quarter of 2021, compared to $9.9 million in the
first quarter of 2021. The sequential increase was due to the
expansion of manufacturing capacity at our Mexico and India
facilities, along with investment in IT and cloud
infrastructure.
Strong demand for our microinverter systems
across all regions continued in the second quarter of 2021. We
introduced our Load Control feature for our Enphase Storage systems
in late May, which provides homeowners the ability to conserve
their energy consumption by shedding non-essential loads during an
outage and thereby extending the backup duration. We optimized our
storage pricing for installers and continued to improve the
installer experience by simplifying the commissioning process and
reducing installation times. As a result, since June we have seen
accelerating demand for our Enphase Storage systems.
We are making good progress on digital
transformation. Both of our recent acquisitions are fully
integrated and exceeded our expectations with record revenue and
installer counts in Q2. The Montreal team, which provides design
and proposal software, added a significant number of new
installers, while the Noida team, which provides proposal and
permitting services, also experienced a significant increase in new
requests. Both teams plan to release new products that will improve
the customer experience and enable our installer base to leverage
them as soon as possible.
Our Enphase Storage customers in Connecticut,
Massachusetts and Rhode Island can now participate and earn money
through the ConnectedSolutions program, a utility-run incentive
program to reduce electrical demand during high-use periods.
Customers can sign-up, monitor, and control participation in
the program using our Enlighten™ mobile app. We are excited to
participate in a grid services program for the first time and
expect to do more in the future.
BUSINESS HIGHLIGHTS
On April 19, 2021, Enphase Energy announced that
Transdev, a multinational transit operator, selected Enphase
microinverters for the first public transport depot
in Australia to feature a fully solar-powered
bus. Transdev plans to electrify the public transport
network in Australia to show that it is more economical
both financially and environmentally to transition to solar-powered
electrical vehicle (EV) buses.
On May 25, 2021, Enphase Energy announced Load
Control, a new feature for its Enphase Storage system. Load Control
enables a homeowner to designate four loads and prioritize them for
what gets power in the event of a grid outage. All of this is done
through the Enlighten mobile app, providing homeowners more control
over their energy consumption while driving an improved installer
experience.
On June 29, 2021, Enphase Energy announced the
launch of its Encharge™ storage system in Germany, the
product’s first expansion into a market outside of the U.S.
The Encharge storage system offers configurations ranging from
3.5kWh to 42kWh, along with the option to upgrade and expand
through the lifetime of the system. Homeowners can also use the
Enphase Enlighten mobile app to intelligently manage their solar
energy in self-consumption mode to minimize the use of electricity
from the grid, which saves on energy bills.
THIRD QUARTER 2021 FINANCIAL
OUTLOOK
For the third quarter of 2021, Enphase Energy estimates both
GAAP and non-GAAP financial results as follows:
-
Revenue to be within a range of $335.0 million to $355.0 million,
which includes shipments of 60 to 70 megawatt hours of Enphase
Storage systems
-
GAAP gross margin to be within a range of 37.0% to 40.0%; non-GAAP
gross margin to be within a range of 38.0% to 41.0%, excluding
stock-based compensation expenses
-
GAAP operating expenses to be within a range of $105.0 million
to $108.0 million, including $48.0 million estimated for
stock-based compensation expenses and acquisition related costs and
amortization
-
Non-GAAP operating expenses to be within a range of
$57.0 million to $60.0 million, excluding
$48.0 million estimated for stock-based compensation expenses
and acquisition related costs and amortization. The non-GAAP
estimates include increased investments in new products, software,
and marketing, and a $3.4 million accrual for post combination
expenses from prior acquisition
Follow Enphase Online
- Read the Enphase blog.
- Follow @Enphase on Twitter.
- Visit us on Facebook and
LinkedIn.
- Watch Enphase videos on
YouTube.
Use of Non-GAAP Financial Measures
The Company has presented certain non-GAAP financial measures in
this press release. To view a description of non-GAAP financial
measures used and the non-GAAP reconciliation schedule for the
periods presented, click here.
Conference Call Information
Enphase Energy will host a conference call for
analysts and investors to discuss its second quarter 2021 results
and third quarter 2021 business outlook today at 4:30 p.m. Eastern
Time (1:30 p.m. Pacific Time). The call is open to the public by
dialing (877) 644-1284; participant passcode 5415938. A live
webcast of the conference call will also be accessible from the
“Investor Relations” section of the Company’s website at
investor.enphase.com. Following the webcast, an archived version
will be available on the website for approximately one year. In
addition, an audio replay of the conference call will be available
by calling (855) 859-2056; participant passcode 5415938,
beginning approximately one hour after the call.
Forward-Looking Statements
This press release contains forward-looking
statements, including statements related to Enphase Energy’s
expectations as to future financial performance, expense levels,
liquidity sources, the capabilities, advantages, features and
performance of our technology and products, including the ability
to simplify and reduce installation time, our business strategies
and anticipated demand for our products, the capabilities and
performance of our partners, and the impact to homeowners. These
forward-looking statements are based on the Company’s current
expectations and inherently involve significant risks and
uncertainties. Enphase Energy’s actual results and the timing of
events could differ materially from those anticipated in such
forward-looking statements as a result of certain risks and
uncertainties including those risks described in more detail in the
Company’s most recent Annual Report on Form 10-K and other
documents on file with the SEC and available on the SEC’s website
at www.sec.gov. Enphase Energy undertakes no duty or obligation to
update any forward-looking statements contained in this release as
a result of new information, future events or changes in its
expectations, except as required by law.
A copy of this press release can be found on the
investor relations page of Enphase Energy’s website at
investor.enphase.com.
About Enphase Energy, Inc.
Enphase Energy, a global energy technology
company, delivers smart, easy-to-use solutions that manage solar
generation, storage and communication on one intelligent platform.
The Company revolutionized the solar industry with its
microinverter-based technology and produces a fully integrated
solar-plus-storage solution. Enphase has shipped more than
36 million microinverters, and over
1.5 million Enphase-based systems have been deployed in
more than 130 countries. For more information, visit
www.enphase.com.
Enphase Energy, Enphase, the E logo, Enlighten,
Encharge, and other trademarks or service names are the trademarks
of Enphase Energy, Inc.
Contact:Adam HinckleyEnphase
Energy, Inc.Investor Relationsir@enphaseenergy.com
ENPHASE ENERGY,
INC.CONDENSED CONSOLIDATED STATEMENTS OF
OPERATIONS(In thousands, except per share
data)(Unaudited)
|
Three Months Ended |
|
Six Months Ended |
|
June 30,2021 |
|
March 31,2021 |
|
June 30,2020 |
|
|
June 30,2021 |
|
June 30,2020 |
Net revenues |
$ |
316,057 |
|
|
$ |
301,754 |
|
|
$ |
125,538 |
|
|
|
$ |
617,811 |
|
|
$ |
331,083 |
|
Cost of revenues |
188,256 |
|
|
178,805 |
|
|
77,151 |
|
|
|
367,061 |
|
|
202,021 |
|
Gross profit |
127,801 |
|
|
122,949 |
|
|
48,387 |
|
|
|
250,750 |
|
|
129,062 |
|
Operating expenses: |
|
|
|
|
|
|
|
|
|
|
Research and development |
22,708 |
|
|
21,818 |
|
|
13,192 |
|
|
|
44,526 |
|
|
25,068 |
|
Sales and marketing |
25,586 |
|
|
19,622 |
|
|
12,371 |
|
|
|
45,208 |
|
|
24,143 |
|
General and administrative |
20,107 |
|
|
20,123 |
|
|
11,970 |
|
|
|
40,230 |
|
|
24,285 |
|
Total operating expenses |
68,401 |
|
|
61,563 |
|
|
37,533 |
|
|
|
129,964 |
|
|
73,496 |
|
Income from operations |
59,400 |
|
|
61,386 |
|
|
10,854 |
|
|
|
120,786 |
|
|
55,566 |
|
Other income (expense),
net |
|
|
|
|
|
|
|
|
|
|
Interest income |
98 |
|
|
73 |
|
|
282 |
|
|
|
171 |
|
|
1,373 |
|
Interest expense |
(12,506 |
) |
|
(7,329 |
) |
|
(5,952 |
) |
|
|
(19,835 |
) |
|
(9,107 |
) |
Other income (expense), net |
(633 |
) |
|
573 |
|
|
653 |
|
|
|
(60 |
) |
|
(271 |
) |
Loss on partial settlement of convertible notes (1) |
(13 |
) |
|
(56,369 |
) |
|
— |
|
|
|
(56,382 |
) |
|
— |
|
Change in fair value of derivatives (2) |
— |
|
|
— |
|
|
(59,692 |
) |
|
|
— |
|
|
(44,348 |
) |
Total other expense, net |
(13,054 |
) |
|
(63,052 |
) |
|
(64,709 |
) |
|
|
(76,106 |
) |
|
(52,353 |
) |
Income (loss) before income
taxes |
46,346 |
|
|
(1,666 |
) |
|
(53,855 |
) |
|
|
44,680 |
|
|
3,213 |
|
Income tax benefit
(provision) |
(6,995 |
) |
|
33,364 |
|
|
6,561 |
|
|
|
26,369 |
|
|
18,429 |
|
Net income (loss) |
$ |
39,351 |
|
|
$ |
31,698 |
|
|
$ |
(47,294 |
) |
|
|
$ |
71,049 |
|
|
$ |
21,642 |
|
Net income (loss) per
share: |
|
|
|
|
|
|
|
|
|
|
Basic |
$ |
0.29 |
|
|
$ |
0.24 |
|
|
$ |
(0.38 |
) |
|
|
$ |
0.53 |
|
|
$ |
0.17 |
|
Diluted |
$ |
0.28 |
|
|
$ |
0.22 |
|
|
$ |
(0.38 |
) |
|
|
$ |
0.49 |
|
|
$ |
0.16 |
|
Shares used in per share
calculation: |
|
|
|
|
|
|
|
|
|
|
Basic |
135,094 |
|
|
131,303 |
|
|
125,603 |
|
|
|
133,209 |
|
|
124,567 |
|
Diluted |
141,533 |
|
|
146,442 |
|
|
125,603 |
|
|
|
144,022 |
|
|
138,910 |
|
(1) Loss on partial settlement of convertible
notes of less than $0.1 million for the three months ended June 30,
2021, primarily relates to the non-cash loss on partial settlement
of $0.1 million aggregate principal amount of the Notes due 2025.
Loss on partial settlement of convertible notes of $56.4 million
for the six months ended June 30, 2021 primarily relates to the
$9.5 million non-cash loss on partial settlement of $87.1 million
aggregate principal amount of the Notes due 2024, $9.5 million
non-cash loss on partial settlement of $217.8 million aggregate
principal amount of the Notes due 2025 and $37.5 million non-cash
inducement loss incurred on repurchase of Notes due 2025.
(2) Change in fair value of derivatives of $59.7
million and $44.3 million for the three and six months ended June
30, 2020, respectively, represents changes in fair value of the
conversion option in the Notes due 2025, as well as the convertible
note hedge and warrant transactions. Initially, conversion of the
Notes due 2025 would be settled solely in cash as a result of the
Company not having the necessary number of authorized but unissued
shares of its common stock available to settle the conversion
option of the Notes due 2025 in shares; therefore, the conversion
option, convertible note hedge and warrant transactions were
classified as derivatives that required marked-to-market
accounting. On May 20, 2020, at the Company’s annual meeting of
stockholders, the stockholders approved an amendment to its
certificate of incorporation to increase the number of authorized
shares of the Company’s common stock. As a result, the Company will
now be able to settle the Notes due 2025, convertible notes hedge
and warrants through payment or delivery, as the case may be, of
cash, shares of its common stock or a combination thereof, at the
Company’s election. Accordingly, on May 20, 2020, the conversion
option, convertible note hedge and warrant transactions were
remeasured at fair value and were then reclassified to additional
paid-in-capital in the condensed consolidated balance sheet in the
second quarter of 2020 and are no longer remeasured as long as they
continue to meet the conditions for equity classification.
ENPHASE ENERGY,
INC.CONDENSED CONSOLIDATED BALANCE
SHEETS(In
thousands)(Unaudited)
|
June 30,2021 |
|
December 31,2020 |
ASSETS |
|
|
|
Current assets: |
|
|
|
Cash and cash equivalents |
$ |
1,312,261 |
|
|
$ |
679,379 |
|
Accounts receivable, net |
281,154 |
|
|
182,165 |
|
Inventory |
37,756 |
|
|
41,764 |
|
Prepaid expenses and other assets |
34,748 |
|
|
29,756 |
|
Total current assets |
1,665,919 |
|
|
933,064 |
|
Property and equipment,
net |
63,211 |
|
|
42,985 |
|
Operating lease, right of use
asset, net |
15,693 |
|
|
17,683 |
|
Intangible assets, net |
45,409 |
|
|
28,808 |
|
Goodwill |
61,321 |
|
|
24,783 |
|
Other assets |
118,532 |
|
|
59,875 |
|
Deferred tax assets, net |
130,571 |
|
|
92,904 |
|
Total assets |
$ |
2,100,656 |
|
|
$ |
1,200,102 |
|
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
Current liabilities: |
|
|
|
Accounts payable |
$ |
82,141 |
|
|
$ |
72,609 |
|
Accrued liabilities |
119,234 |
|
|
76,542 |
|
Deferred revenues, current |
55,084 |
|
|
47,665 |
|
Warranty obligations, current |
15,009 |
|
|
11,260 |
|
Debt, current |
85,125 |
|
|
325,967 |
|
Total current liabilities |
356,593 |
|
|
534,043 |
|
Long-term liabilities: |
|
|
|
Deferred revenues, noncurrent |
165,645 |
|
|
125,473 |
|
Warranty obligations, noncurrent |
44,929 |
|
|
34,653 |
|
Other liabilities |
20,075 |
|
|
17,042 |
|
Debt, noncurrent |
929,015 |
|
|
4,898 |
|
Total liabilities |
1,516,257 |
|
|
716,109 |
|
Total stockholders’ equity |
584,399 |
|
|
483,993 |
|
Total liabilities and
stockholders’ equity |
$ |
2,100,656 |
|
|
$ |
1,200,102 |
|
ENPHASE ENERGY,
INC.CONDENSED CONSOLIDATED STATEMENTS OF CASH
FLOWS(In
thousands)(Unaudited)
|
Three Months Ended |
|
Six Months Ended |
|
June 30,2021 |
|
March 31,2021 |
|
June 30,2020 |
|
June 30,2021 |
|
June 30,2020 |
Cash flows from
operating activities: |
|
|
|
|
|
|
|
|
|
Net income (loss) |
$ |
39,351 |
|
|
$ |
31,698 |
|
|
$ |
(47,294 |
) |
|
$ |
71,049 |
|
|
$ |
21,642 |
|
Adjustments to reconcile net income (loss) to net cash provided by
operating activities: |
|
|
|
|
|
|
|
|
|
Depreciation and amortization |
7,596 |
|
|
5,558 |
|
|
4,141 |
|
|
13,154 |
|
|
7,985 |
|
Provision for doubtful accounts |
257 |
|
|
14 |
|
|
81 |
|
|
271 |
|
|
185 |
|
Loss on partial settlement of convertibles notes |
13 |
|
|
56,369 |
|
|
— |
|
|
56,382 |
|
|
— |
|
Deemed repayment of convertible notes attributable to accreted debt
discount |
(6 |
) |
|
(15,579 |
) |
|
— |
|
|
(15,585 |
) |
|
— |
|
Non-cash interest expense |
12,307 |
|
|
7,156 |
|
|
5,372 |
|
|
19,463 |
|
|
8,094 |
|
Change in fair value of debt securities |
(932 |
) |
|
(1,437 |
) |
|
— |
|
|
(2,369 |
) |
|
— |
|
Stock-based compensation |
15,312 |
|
|
14,844 |
|
|
12,300 |
|
|
30,156 |
|
|
19,815 |
|
Change in fair value of derivatives |
— |
|
|
— |
|
|
59,692 |
|
|
— |
|
|
44,348 |
|
Deferred income taxes |
5,240 |
|
|
(35,367 |
) |
|
(7,067 |
) |
|
(30,127 |
) |
|
(19,567 |
) |
Changes in operating assets and liabilities: |
|
|
|
|
|
|
|
|
|
Accounts receivable |
(44,812 |
) |
|
(53,719 |
) |
|
6,529 |
|
|
(98,531 |
) |
|
56,166 |
|
Inventory |
(2,880 |
) |
|
6,888 |
|
|
3,430 |
|
|
4,008 |
|
|
870 |
|
Prepaid expenses and other assets |
(10,154 |
) |
|
(5,040 |
) |
|
(4,525 |
) |
|
(15,194 |
) |
|
(9,534 |
) |
Accounts payable, accrued and other liabilities |
10,514 |
|
|
36,376 |
|
|
(13,323 |
) |
|
46,890 |
|
|
(35,389 |
) |
Warranty obligations |
5,385 |
|
|
8,640 |
|
|
406 |
|
|
14,025 |
|
|
809 |
|
Deferred revenues |
28,469 |
|
|
19,440 |
|
|
5,689 |
|
|
47,909 |
|
|
(30,771 |
) |
Net cash provided by operating activities |
65,660 |
|
|
75,841 |
|
|
25,431 |
|
|
141,501 |
|
|
64,653 |
|
Cash flows from
investing activities: |
|
|
|
|
|
|
|
|
|
Purchases of property and equipment |
(16,428 |
) |
|
(9,940 |
) |
|
(4,451 |
) |
|
(26,368 |
) |
|
(7,804 |
) |
Investments in private companies |
(20,000 |
) |
|
(25,000 |
) |
|
— |
|
|
(45,000 |
) |
|
— |
|
Business acquisitions, net of cash acquired |
— |
|
|
(55,239 |
) |
|
— |
|
|
(55,239 |
) |
|
— |
|
Net cash used in investing activities |
(36,428 |
) |
|
(90,179 |
) |
|
(4,451 |
) |
|
(126,607 |
) |
|
(7,804 |
) |
Cash flows from
financing activities: |
|
|
|
|
|
|
|
|
|
Issuance of convertible notes, net of issuance costs |
(949 |
) |
|
1,189,388 |
|
|
(591 |
) |
|
1,188,439 |
|
|
312,420 |
|
Purchase of convertible note hedges |
— |
|
|
(286,235 |
) |
|
— |
|
|
(286,235 |
) |
|
(89,056 |
) |
Sale of warrants |
— |
|
|
220,800 |
|
|
— |
|
|
220,800 |
|
|
71,552 |
|
Principal payments and financing fees on debt |
(344 |
) |
|
(1,078 |
) |
|
(485 |
) |
|
(1,422 |
) |
|
(1,633 |
) |
Partial repurchase of convertible notes |
(79 |
) |
|
(289,233 |
) |
|
— |
|
|
(289,312 |
) |
|
— |
|
Repurchase of common stock |
(200,000 |
) |
|
— |
|
|
— |
|
|
(200,000 |
) |
|
— |
|
Proceeds from exercise of equity awards and employee stock purchase
plan |
3,428 |
|
|
214 |
|
|
2,867 |
|
|
3,642 |
|
|
4,846 |
|
Payment of withholding taxes related to net share settlement of
equity awards |
(7,813 |
) |
|
(9,185 |
) |
|
(9,385 |
) |
|
(16,998 |
) |
|
(43,652 |
) |
Net cash provided by (used in) financing activities |
(205,757 |
) |
|
824,671 |
|
|
(7,594 |
) |
|
618,914 |
|
|
254,477 |
|
Effect of exchange rate changes on cash and cash equivalents |
(224 |
) |
|
(702 |
) |
|
24 |
|
|
(926 |
) |
|
(181 |
) |
Net increase (decrease) in
cash, cash equivalents and restricted cash |
(176,749 |
) |
|
809,631 |
|
|
13,410 |
|
|
632,882 |
|
|
311,145 |
|
Cash, cash equivalents and
restricted cash—Beginning of period |
1,489,010 |
|
|
679,379 |
|
|
593,844 |
|
|
679,379 |
|
|
296,109 |
|
Cash, cash equivalents and
restricted cash—End of period |
$ |
1,312,261 |
|
|
$ |
1,489,010 |
|
|
$ |
607,254 |
|
|
$ |
1,312,261 |
|
|
$ |
607,254 |
|
ENPHASE ENERGY, INC.RECONCILIATION OF
NON-GAAP FINANCIAL MEASURES(In thousands, except
per share data and
percentages)(Unaudited) |
|
|
Three Months Ended |
|
Six Months Ended |
|
June 30,2021 |
|
March 31,2021 |
|
June 30,2020 |
|
June 30,2021 |
|
June 30,2020 |
Gross profit (GAAP) |
$ |
127,801 |
|
|
$ |
122,949 |
|
|
$ |
48,387 |
|
|
$ |
250,750 |
|
|
$ |
129,062 |
|
Stock-based compensation |
1,060 |
|
|
982 |
|
|
1,337 |
|
|
2,042 |
|
|
1,943 |
|
Gross profit (Non-GAAP) |
$ |
128,861 |
|
|
$ |
123,931 |
|
|
$ |
49,724 |
|
|
$ |
252,792 |
|
|
$ |
131,005 |
|
|
|
|
|
|
|
|
|
|
|
Gross margin (GAAP) |
40.4 |
% |
|
40.7 |
% |
|
38.5 |
% |
|
40.6 |
% |
|
39.0 |
% |
Stock-based compensation |
0.4 |
% |
|
0.4 |
% |
|
1.1 |
% |
|
0.3 |
% |
|
0.6 |
% |
Gross margin (Non-GAAP) |
40.8 |
% |
|
41.1 |
% |
|
39.6 |
% |
|
40.9 |
% |
|
39.6 |
% |
|
|
|
|
|
|
|
|
|
|
Operating expenses (GAAP) |
$ |
68,401 |
|
|
$ |
61,563 |
|
|
$ |
37,533 |
|
|
$ |
129,964 |
|
|
$ |
73,496 |
|
Stock-based compensation (1) |
(14,252 |
) |
|
(13,862 |
) |
|
(10,963 |
) |
|
(28,114 |
) |
|
(17,872 |
) |
Acquisition related expenses and amortization |
(2,453 |
) |
|
(4,002 |
) |
|
(546 |
) |
|
(6,455 |
) |
|
(1,092 |
) |
Operating expenses (Non-GAAP) |
$ |
51,696 |
|
|
$ |
43,699 |
|
|
$ |
26,024 |
|
|
$ |
95,395 |
|
|
$ |
54,532 |
|
|
|
|
|
|
|
|
|
|
|
(1) Includes stock-based compensation as follows: |
|
|
|
|
|
|
|
|
|
Research and development |
$ |
5,467 |
|
|
$ |
5,749 |
|
|
$ |
3,263 |
|
|
$ |
11,216 |
|
|
$ |
5,182 |
|
Sales and marketing |
5,335 |
|
|
3,537 |
|
|
3,610 |
|
|
8,872 |
|
|
5,552 |
|
General and administrative |
3,450 |
|
|
4,576 |
|
|
4,090 |
|
|
8,026 |
|
|
7,138 |
|
Total |
$ |
14,252 |
|
|
$ |
13,862 |
|
|
$ |
10,963 |
|
|
$ |
28,114 |
|
|
$ |
17,872 |
|
|
|
|
|
|
|
|
|
|
|
Income from operations
(GAAP) |
$ |
59,400 |
|
|
$ |
61,386 |
|
|
$ |
10,854 |
|
|
$ |
120,786 |
|
|
$ |
55,566 |
|
Stock-based compensation |
15,312 |
|
|
14,844 |
|
|
12,300 |
|
|
30,156 |
|
|
19,815 |
|
Acquisition related expenses and amortization |
2,453 |
|
|
4,002 |
|
|
546 |
|
|
6,455 |
|
|
1,092 |
|
Income from operations
(Non-GAAP) |
$ |
77,165 |
|
|
$ |
80,232 |
|
|
$ |
23,700 |
|
|
$ |
157,397 |
|
|
$ |
76,473 |
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
(GAAP) |
$ |
39,351 |
|
|
$ |
31,698 |
|
|
$ |
(47,294 |
) |
|
$ |
71,049 |
|
|
$ |
21,642 |
|
Stock-based compensation |
15,312 |
|
|
14,844 |
|
|
12,300 |
|
|
30,156 |
|
|
19,815 |
|
Acquisition related expenses and amortization |
2,453 |
|
|
4,002 |
|
|
546 |
|
|
6,455 |
|
|
1,092 |
|
Non-cash interest expense |
12,307 |
|
|
7,156 |
|
|
5,372 |
|
|
19,463 |
|
|
8,094 |
|
Loss on partial settlement of convertible notes |
13 |
|
|
56,369 |
|
|
— |
|
|
56,382 |
|
|
— |
|
Change in fair value of derivatives |
— |
|
|
— |
|
|
59,692 |
|
|
— |
|
|
44,348 |
|
Non-GAAP income tax adjustment |
5,240 |
|
|
(35,367 |
) |
|
(7,067 |
) |
|
(30,127 |
) |
|
(19,567 |
) |
Net income
(Non-GAAP) |
$ |
74,676 |
|
|
$ |
78,702 |
|
|
$ |
23,549 |
|
|
$ |
153,378 |
|
|
$ |
75,424 |
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) per
share, basic (GAAP) |
$ |
0.29 |
|
|
$ |
0.24 |
|
|
$ |
(0.38 |
) |
|
$ |
0.53 |
|
|
$ |
0.17 |
|
Stock-based compensation |
0.11 |
|
|
0.11 |
|
|
0.10 |
|
|
0.23 |
|
|
0.16 |
|
Acquisition related expenses and amortization |
0.02 |
|
|
0.03 |
|
|
— |
|
|
0.05 |
|
|
0.01 |
|
Non-cash interest expense |
0.09 |
|
|
0.05 |
|
|
0.05 |
|
|
0.15 |
|
|
0.07 |
|
Loss on partial settlement of convertible notes |
— |
|
|
0.43 |
|
|
— |
|
|
0.42 |
|
|
— |
|
Change in fair value of derivatives |
— |
|
|
— |
|
|
0.48 |
|
|
— |
|
|
0.36 |
|
Non-GAAP income tax adjustment |
0.04 |
|
|
(0.26 |
) |
|
(0.06 |
) |
|
(0.23 |
) |
|
(0.16 |
) |
Net income per share,
basic (Non-GAAP) |
$ |
0.55 |
|
|
$ |
0.60 |
|
|
$ |
0.19 |
|
|
$ |
1.15 |
|
|
$ |
0.61 |
|
|
|
|
|
|
|
|
|
|
|
Shares used in basic per share calculation GAAP and Non-GAAP |
135,094 |
|
|
131,303 |
|
|
125,603 |
|
|
133,209 |
|
|
124,567 |
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) per
share, diluted (GAAP) |
$ |
0.28 |
|
|
$ |
0.22 |
|
|
$ |
(0.38 |
) |
|
$ |
0.49 |
|
|
$ |
0.16 |
|
Stock-based compensation |
0.11 |
|
|
0.11 |
|
|
0.09 |
|
|
0.21 |
|
|
0.14 |
|
Acquisition related expenses and amortization |
0.02 |
|
|
0.03 |
|
|
— |
|
|
0.05 |
|
|
0.01 |
|
Non-cash interest expense |
0.09 |
|
|
0.05 |
|
|
0.04 |
|
|
0.14 |
|
|
0.06 |
|
Loss on partial settlement of convertible notes |
— |
|
|
0.40 |
|
|
— |
|
|
0.40 |
|
|
— |
|
Change in fair value of derivatives |
— |
|
|
— |
|
|
0.48 |
|
|
0.01 |
|
|
$ |
0.33 |
|
Non-GAAP income tax adjustment |
0.03 |
|
|
(0.25 |
) |
|
(0.06 |
) |
|
(0.21 |
) |
|
(0.14 |
) |
Net income per share,
diluted (Non-GAAP) (2) |
$ |
0.53 |
|
|
$ |
0.56 |
|
|
$ |
0.17 |
|
|
$ |
1.09 |
|
|
$ |
0.56 |
|
|
|
|
|
|
|
|
|
|
|
Shares used in diluted per share calculation GAAP |
141,533 |
|
|
146,442 |
|
|
125,603 |
|
|
144,022 |
|
|
138,910 |
|
Shares used in diluted per share calculation Non-GAAP (3) |
140,931 |
|
|
141,746 |
|
|
135,770 |
|
|
141,379 |
|
|
135,557 |
|
|
|
|
|
|
|
|
|
|
|
Net cash provided by
operating activities (GAAP) |
$ |
65,660 |
|
|
$ |
75,841 |
|
|
$ |
25,431 |
|
|
$ |
141,501 |
|
|
$ |
64,653 |
|
Purchases of property and equipment |
(16,428 |
) |
|
(9,940 |
) |
|
(4,451 |
) |
|
(26,368 |
) |
|
(7,804 |
) |
Deemed repayment of convertible notes due 2024 and notes due 2025
attributable to accreted debt discount |
6 |
|
|
15,579 |
|
|
— |
|
|
15,585 |
|
|
— |
|
Free cash flow
(Non-GAAP) |
$ |
49,238 |
|
|
$ |
81,480 |
|
|
$ |
20,980 |
|
|
$ |
130,718 |
|
|
$ |
56,849 |
|
(2) Calculation of non-GAAP diluted net income
per share for the three months ended June 30, 2021,
March 31, 2021 and June 30, 2020, as well as the six
months ended June 30, 2021 and 2020, excludes convertible notes due
2023 interest expense, net of tax of less than $0.1 million in
each period from non-GAAP net income.
(3) Effect of dilutive in-the-money portion of
convertible senior notes and warrants are included in the GAAP
weighted-average diluted shares in periods where the Company has
GAAP net income. The Company excluded the in-the-money portion of
convertible notes due 2024 totaling 45 thousand shares, 2,984
thousand shares and 3,677 thousand shares in the three months ended
June 30, 2021, March 31, 2021 and June 30, 2020,
respectively, and 1,506 thousand and 3,353 thousand shares for the
six months ended June 30, 2021, and 2020, respectively from
non-GAAP weighted-average diluted shares as the Company entered
into convertible note hedge transactions that reduce potential
dilution to the Company’s common stock upon any conversion of the
notes due 2024. The Company excluded the in-the-money portion of
convertible notes due 2025 totaling 557 thousand shares and 1,713
thousand shares in the three months ended June 30, 2021 and
March 31, 2021, respectively, and 1,137 thousand shares for
the six months ended June 30, 2021, respectively, from
non-GAAP weighted-average diluted shares as the Company entered
into convertible note hedge transactions that reduce potential
dilution to the Company’s common stock upon any conversion of the
notes due 2025.
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