Enphase Energy exceeded its revenue guidance in the third quarter as microinverter shipments rebounded strongly on the back of a “significant” improvement in global demand.
Having witnessed the COVID-19 pandemic impact its top line in Q2, resulting in a 39% sequential revenue slump, the microinverter supplier recorded a 42% rebound as it recorded revenue of US$178.5 million for the three months ended 30 September.
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During that time Enphase shipped approximately 478MW of microinverters, equivalent to 1,442,743 units.
While the performance was marginally down (1%) on its revenue figure recorded in Q3 2019, it was enough to beat the guidance Enphase gave during its previous results disclosure of US$160 – $175 million.
Badri Kothandaraman, CEO at Enphase Energy, said the company had witnessed a “strong rebound” on Q2 demand in the US, providing yet further evidence that the market had continued its recovery from issues triggered by the pandemic in previous months.
There have been numerous suggestions that the US residential solar market had recovered quicker than expected, with other product manufacturers, distributors and installers noting higher-than-expected demand throughout Q3.
In addition, the company noted that it had witnessed a record high margin of 41% throughout the quarter achieved, it said, by tight control over expenses.
Going into Q4, Enphase expects this recovery to continue, and as such has issued guidance for revenues to fall in the range of US$245 – 260 million. As a result, the company has begun to ramp production back up, and Enphase now expects higher levels of microinverter production throughout Q4. Indeed, Kothandaraman told investors the company expects its facility in Mexico to produce one million units throughout the quarter.
Another highlight for the company will be the early success of its Encharge energy storage system, which began shipping in the second quarter. Manufacturing of the product was ramped throughout July, Kothandaraman said, and the company has received “positive feedback” to date.
Sales of the Encharge product were responsible for around 10% of the company’s revenue in Q3 2020.