Ok, it's been 10 days in a row for the "10k in 10 tweets" series!
Last up is Enphase.
[THREAD]
Last up is Enphase.
[THREAD]
1/ The company sells microinverters and solar storage.
A microinverter is an alternative to a central inverter where each solar panel is tied together. Microinverters are independent and therefore have more redundancy.
A microinverter is an alternative to a central inverter where each solar panel is tied together. Microinverters are independent and therefore have more redundancy.
2/ Some more on the benefits of microinverters.
Also PV = photovoltaics. It's the conversion of sunlight to electricity.
Also PV = photovoltaics. It's the conversion of sunlight to electricity.
3/ Enphase primarily sells through solar installers.
Below is also some more detail on the tax credit schedule for solar. The company has been growing very quickly in part because the tax credits are starting to decrease. In short, revenue is getting pulled forward.
Below is also some more detail on the tax credit schedule for solar. The company has been growing very quickly in part because the tax credits are starting to decrease. In short, revenue is getting pulled forward.
4/ Nearly all of the company's revenue is from microinverters.
Included is what a microinverter actually looks like.
Included is what a microinverter actually looks like.
5/ Enphase sold over 6 million microinverters last year. A vast majority of those were the IQ7 model. Apparently the IQ8 is taking pre-orders and the technology is a big upgrade.
6/ You can see that revenue, gross profit and EBIT have all improved drastically.
That's because the IQ7 has been a big hit, the tax credit pull forward, and overall demand for solar installation.
In fact, Tesla's Powerwall integrates with Enphases's microinverter.
That's because the IQ7 has been a big hit, the tax credit pull forward, and overall demand for solar installation.
In fact, Tesla's Powerwall integrates with Enphases's microinverter.
7/ Two customers make up 33% of revenue. This is fairly significant concentration but with distributors, it is usually less important than with a specific client.
8/ You can see that international revenue was pretty flat while all the growth came from the US.
9/ The company even has a cloud-based management system when the inverter acts as a connected-device telling the homeowner exactly how well it is performing.
With storage, the home isn't tied to the grid anymore either.
With storage, the home isn't tied to the grid anymore either.
10/ Enphase has great tailwinds with a growing end-market & strong product innovation.
However, it's tough to understand sales cycles since growth depends on new products. It's also difficult to understand the true market size, since central inverters are good for most cases.
However, it's tough to understand sales cycles since growth depends on new products. It's also difficult to understand the true market size, since central inverters are good for most cases.
