Enphase Energy continues strong profits development in spite of supply constraints, adds new battery storage space capacity complying with high demand

• Microinverter distributor Enphase Energy has actually published solid Q4 2021 results that saw solid profits growth complying with high need for its IQ microinverters and also a 53% jump in orders of its IQ batteries, compared with Q3 2021, despite supply chain restrictions. In reaction to the rise popular for batteries, it has included extra capacity to its facilities in Mexico as well as India.

Alongside the revenue growth came a considerable ramp up of investment in research and development (R&D) and also sales and marketing from last year. The firm likewise made a variety of essential acquisitions in Q4 last year as it looks for to relocate right into the electric vehicle (EV) as well as predictive software program room.

Enphase videotaped US$ 412.7 million in revenue for the 3 months finishing 31 December 2021, up from US$ 351.5 million in Q3 2021, according to its Q4 2021 monetary results released yesterday (8 February). This was a 17% jump on the record earnings published in Q3 2021.

It said solid demand for its IQ microinverters and IQ Batteries in the United States and also worldwide markets drove the raised revenue regardless of "supply chain constraints as well as logistical difficulties".

Enphase shipped about 3,033,891 microinverters totalling 1,082 MWdc and 100MWh of Enphase IQ Batteries. In Q3, it shipped 2.6 million microinverters, comparable to around 913MWdc, as well as 65MWh of storage space systems.

Talking with experts concerning the results, Enphase CEO Badri Kothandaraman said: "Our operations team did a great job flexing production as 2021 played out" and that the firm's "situation has actually been steady largely due to thorough distributor monitoring as well as qualification of alternate distributors during the past year".

In an action to the greater demand, Enphase had actually included a fully automated line in Mexico with a capacity of 2.25 million microinverters and a 2nd totally automated line with a capacity of 1.5 million microinverters in India using its agreement maker Salcomp. In mix with its Chinese capacity, this brings its complete quarterly manufacturing capacity to 5 million microinverters worldwide.

At the same time, the firm has 180MWh of storage space capacity today, up from 120MWh in Q3, and remains in conversations with extra storage space distributors to boost capacity further, it said.

" Our lead times for batteries are still long today at around 14 to 16 weeks primarily as a result of logistics difficulties, which are worldwide," stated Kothandaraman. "The preparations need to come down as soon as global delivery and also port conditions improve."

Enphase anticipates to deliver in between 110-120MWh of batteries in Q1 this year, stated Kothandaraman, up 15% from Q4 last year. Yet expect costs for Enphase's battery storage space products to increase in March this year, Kothandaraman told experts.

The business expects earnings of US$ 420-440 million in Q1 versus previous quote of US$ 397 million, according to a ROTH Capital note that included the better-than-expected figures are "due in part to expected development in storage as Enphase expects to deliver 110-120MWh of storage in Q1 for implied sequential development of 15% versus previous ROTH quote of 105MWh."

Eyeing future development chances, Enphase more than increased it expenditure on R&D in Q4 compared to the exact same period in 2020, with the firm investing US$ 31.6 million into research, up from US$ 15.8 million. It additionally more than tripled its sales and also advertising investments from Q4 2020 and also it currently stands at US$ 44.5 million, up from US$ 14.1 million.

In addition to this, Enphase made two vital purchases in Q4. In November 2021, it got in the EV charging industry with the purchase of charging station supplier ClipperCreek. And, additionally in Q4, it obtained predictive software platform firm 365 Pronto.

While its net income was down 28% from Q4 2020 to US$ 52.6 million, it was up greater than dual on the previous quarter, where it was US$ 21.8 million. Its full-year profits got to US$ 1.38 billion throughout 2021, up from US$ 774.4 million in 2020, and also it produced a document US$ 352 million in cash flow from procedures during 2021.

Enphase's shares rose by greater than 16% during trading on Tuesday adhering to the Q4 results.