US microinverter manufacturer and residential battery supplier Enphase Energy saw net income soar 183% year-on-year in the first quarter of 2023, but its battery shipments fell for the third quarter in a row.
In its recent announcement of the first financial results of 2023, the company said its net income increase from US$51.8 million in Q1 2022 to US$146.9 million in Q1 2023, equivalent to an increase of 183.4%. Quarter-on-quarter, net income dropped by 4.5% from US$153.8 million.
Meanwhile, its revenue surged from US$441.3 million in Q1 2022 to US$726 in Q1 2023, equating to a 64.5% year-on-year increase. Compared to Q4 2022, revenue increased by 0.2% from US$724.7 million.
According to the company, revenue in the US for Q1 2023 decreased by about 8.7% from US$518 million to US$473 million due to seasonality and macroeconomic conditions. However, its revenue in Europe increased from US$206.7 million in Q4 2022 to US$253 million in Q1 2023.
In Q1 2023, Enphase Energy shipped about 4.8 million microinverters totalling 1,957MWdc, with 65% of them being the latest microinverter version, IQ8.
The company added that its IQ Battery shipments were 102.4 MWh in Q1 2023, down from 122.1 MWh in Q4 2022, although it started shipping to customers in the Netherlands, France, Austria, and Switzerland, in addition to North America, Germany, and Belgium.
It expects to ship 80-100MWh in the current (second) quarter, meaning the figure could potentially fall for three quarters in a row.
Moving forward, Enphase Energy is expected to introduce IQ Batteries into more countries later in the year.
Moreover, the company began shipments of its Enphase microinverters from a contract manufacturer, Flex, in Timisoara, Romania in Q1 2023. With this new manufacturing capability, Enphase Energy said it had increased its global capacity to about six million microinverters per quarter.
In Q2 2023, Enphase Energy will add manufacturing capacity in the US thanks to the Inflation Reduction Act (IRA). It will also open manufacturing lines in the US with three partners, adding a capacity of 4.5 million microinverters per quarter and bringing its total global quarterly capacity to more than 10 million microinverters by the end of 2023. Enphase Energy will begin US manufacturing with one partner in Q2 and with the remaining two in Q3.
Apart from the financial results of Q1 2023, Enphase Energy’s revenue in Q2 will be within a range of US$700.0 million to US$750.0 million, including shipments of up to 100MWh of its Enphase IQ Batteries. The gross margin will be within the range of 41% to 44%.