Enphase closes 2020 with a strong Q4

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From pv magazine USA

Enphase Energy reported a 67% quarter-over-quarter revenue growth in Q4 2020, driven by what it said was strong demand for microinverter systems across all regions.

It also reported the success of the Enphase Encharge storage system, shipments of which increased roughly 35% in Q4, compared to the Q3.

In total, Enphase reported revenues of $264.8 million in Q4 and $774.4 million for all of 2020. The performance improved on what was a difficult Q2 for the company. The company reported Q2 revenue of $125.5 million, and a GAAP gross margin of 38.5%.

The company said that $217.5 of its Q4 revenue came from the United States, up from  $139.9 million during Q3.

Enphase also reported what it said was record microinverter system sell-through from distributors to installers during the fourth quarter, resulting in lower than usual channel inventory at the end of the quarter. The sell-through rate led to Enphase shipping almost 2.3 million microinverters in Q4, representing around 762 MWdc.

(Read “Is Enphase poised to challenge SolarEdge’s inverter lead?“)

Also recognized on the earnings call was Enphase’s recent acquisition of Sofdesk Inc., a provider of design software for residential solar installers and roofing companies. The company also mentioned its recent agreement to acquire the Solar Design Services business of DIN Engineering Services.

The company said these acquisitions are expected to enhance the company’s digital platform capabilities, simplify the sales process, and improve the buying experience for homeowners.

Fueled by a second straight quarter of higher engineering and sales headcount, non-GAAP operating expenses rose to $34.2 million in Q4. That was up from $29.6 million reported in the prior quarter. Overall, Enphase hired 105 new employees in the last three months of 2020. Enphase’s non-GAAP figures do not include the $16.5 million in tariff refunds on U.S. microinverter imports from China.

Looking ahead

Enphase predicts that revenue will range between $280 million to $300 million. GAAP operating expenses are expected to range between $64.0 million to $67.0 million, including $22 million estimated for stock-based compensation expenses and acquisition-related costs and amortization. The figures include the Sofdesk acquisition, but not DIN’s Solar Design Services business.

The company also forecast a production ramp for its Encharge storage system during the first quarter. There was, however, no word on if the company expects to expand its Enphase Energized AC modules in markets beyond France and the Netherlands.

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