Enphase Energy Inc (ENPH) 2023 Q3 法說會逐字稿

Good afternoon and welcome to Enphase Energy's Third Quarter 2023 Financial Results Conference Call. (Operator Instructions) Please also note that this event is being recorded today.

下午好，歡迎參加 Enphase Energy 2023 年第三季財務業績電話會議。 （操作員指示）另請注意，今天正在記錄此事件。

I would now like to turn the conference over to Zach Freedman. Please go ahead, sir.

現在我想將會議交給扎克·弗里德曼。先生，請繼續。

Good afternoon, and thank you for joining us on today's conference call to discuss Enphase Energy's third quarter 2023 results. On today's call are Badri Kothandaraman, our President and Chief Executive Officer; Mandy Yang, our Chief Financial Officer; and Raghu Belur, our Chief Products Officer.

下午好，感謝您參加今天的電話會議討論 Enphase Energy 2023 年第三季的業績。參加今天電話會議的有我們的總裁兼執行長 Badri Kothandaraman；我們的財務長 Mandy Yang；以及我們的首席產品長 Raghu Belur。

After the market closed today, Enphase issued a press release announcing the results for its third quarter ended September 30, 2023. During this conference call, Enphase management will make forward-looking statements, including, but not limited to, statements related to our expected future financial performance, market trends, the capabilities of our technology and products and the benefits to homeowners and installers, our operations, including manufacturing, customer service and supply and demand, anticipated growth in existing and new markets, the timing of new product introductions and regulatory and tax matters.

今天收盤後，Enphase發布新聞稿，宣布其截至2023年9月30日的第三季度業績。

These forward-looking statements involve significant risks and uncertainties and our actual results and the timing of events could differ materially from these expectations. For a more complete discussion of the risks and uncertainties, please see our most recent Form 10-K and 10-Qs filed with the SEC. We caution you not to place any undue reliance on forward-looking statements and undertake no duty or obligation to update any forward-looking statements as a result of new information, future events or changes in expectations.

這些前瞻性陳述涉及重大風險和不確定性，我們的實際結果和事件發生的時間可能與這些預期有重大差異。有關風險和不確定性的更完整討論，請參閱我們向美國證券交易委員會提交的最新 10-K 表和 10-Q 表。我們提醒您不要過度依賴前瞻性陳述，並且不承擔因新資訊、未來事件或預期變更而更新任何前瞻性陳述的責任或義務。

Also, please note that financial measures used on this call are expressed on a non-GAAP basis unless otherwise noted and have been adjusted to exclude certain charges. We have provided a reconciliation of these non-GAAP financial measures to GAAP financial measures in our earnings release furnished with the SEC on Form 8-K, which can also be found in the Investor Relations section of our website.

另請注意，除非另有說明，本次電話會議中使用的財務指標均以非 GAAP 為基礎表示，且已進行調整以排除某些費用。我們在向美國證券交易委員會提交的 8-K 表收益報告中提供了這些非 GAAP 財務指標與 GAAP 財務指標的對帳表，您也可以在我們網站的「投資者關係」部分找到該對帳表。

Now I'd like to introduce Badri Kothandaraman, our President and Chief Executive Officer. Badri?

現在我想介紹我們的總裁兼執行長巴德里·科坦達拉曼 (Badri Kothandaraman)。巴德里？

Good afternoon, and thanks for joining us today to discuss our third quarter 2023 financial results.

下午好，感謝您今天加入我們討論我們的 2023 年第三季財務業績。

We reported quarterly revenue of $551.1 million, shipped approximately 3.9 million microinverters and 86 megawatt hours of batteries and generated free cash flow of $122 million. Approximately 86% of our Q3 microinverter shipments were IQ8. We exited the third quarter at 48% gross margin, 18% operating expense and 30% operating income, all as a percentage of revenue on a non-GAAP basis and including the IRA benefit. Mandy will go into our financials later in the call.

我們報告季度收入為 5.511 億美元，出貨了約 390 萬台微型逆變器和 86 兆瓦時的電池，並產生了 1.22 億美元的自由現金流。我們第三季微型逆變器出貨量中約有 86% 是 IQ8。第三季結束時，我們的毛利率為 48%，營業費用為 18%，營業收入為 30%，這些均以非 GAAP 基礎的收入百分比計算，並包括 IRA 收益。 Mandy 稍後會在電話會議中討論我們的財務狀況。

Let's now discuss how we are servicing customers. Our worldwide NPS was 77% in Q3 compared to 74% in Q2. Our NPS in North America was 78% compared to 77% in Q2. Our average call wait time was 1.3 minutes compared to 1.1 minutes in Q2. We made significant progress on root cause fixes of some customer issues and expanded our field service teams globally.

現在讓我們討論一下我們如何為客戶提供服務。我們第三季的全球 NPS 為 77%，而第二季為 74%。我們在北美的 NPS 為 78%，而第二季為 77%。我們的平均通話等待時間為 1.3 分鐘，而第二季為 1.1 分鐘。我們在解決一些客戶問題的根本原因方面取得了重大進展，並在全球範圍內擴展了我們的現場服務團隊。

Let's talk about operations. In general, the overall supply environment for microinverters and batteries is quite stable right now.

讓我們談談操作。整體來看，目前微型逆變器和電池的整體供應環境較穩定。

Let's cover microinverters, specifically U.S. manufacturing. We began manufacturing at Salcomp facility in Arlington, Texas, during the third quarter. We shipped approximately 531,000 microinverters to customers in Q3 from our 3 contract manufacturers in the U.S.: Flex in South Carolina, Foxconn in Wisconsin and Salcomp in Texas. We expect to ship approximately 1 million microinverters to customers from our U.S. manufacturing facilities in Q4.

讓我們來介紹一下微型逆變器，特別是美國製造業。我們於第三季開始在德州阿靈頓的 Salcomp 工廠進行生產。第三季度，我們從美國的 3 家合約製造商（南卡羅來納州的 Flex、威斯康辛州的富士康和德克薩斯州的 Salcomp）向客戶運送了約 531,000 台微型逆​​變器。我們預計將在第四季從美國製造工廠向客戶運送約 100 萬台微型逆變器。

Let's talk about batteries. For IQ batteries, we have 2 cell pack suppliers, both of which are in China. We have a manufacturing capacity of 300-megawatt hours per quarter, positioning us well to ramp up in 2024. We are looking at bringing manufacturing of IQ batteries into the U.S. by the middle of 2024.

讓我們來談談電池。對於 IQ 電池，我們有 2 個電池組供應商，兩者都在中國。我們的生產能力為每季 300 兆瓦時，這為我們在 2024 年實現產能提升做好了準備。

Let's now cover the regions. Our U.S. and international revenue mix for Q3 was 64% and 36%, respectively. In the U.S., our revenue decreased 16% sequentially and 22% year-on-year. The overall sell-through of our microinverters was down 12% in Q3 compared to Q2. On the other hand, the sell-through of our IQ batteries in the U.S. was up by 34% in Q3 compared to Q2. In Europe, our revenue decreased 34% sequentially and increased 26% year-on-year at healthy gross margin. The sell-through of our microinverters in Europe was also down 35% in Q3 compared to Q2. The sell-through of our IQ batteries in Europe was down by 14% in Q3 compared to Q2.

現在讓我們來介紹一下各個地區。我們第三季的美國和國際營收佔比分別為 64% 和 36%。在美國，我們的營收季減 16%，年減 22%。與第二季相比，第三季我們的微型逆變器整體銷售量下降了 12%。另一方面，第三季我們在美國 IQ 電池的銷售量與第二季相比成長了 34%。在歐洲，我們的營收季減 34%，年增 26%，毛利率健康。與第二季相比，第三季我們微型逆變器在歐洲的銷售量也下降了 35%。與第二季相比，第三季我們 IQ 電池在歐洲的銷售量下降了 14%。

We are now shipping IQ microinverters and batteries into many countries in Europe. We recently entered U.K., Sweden, Denmark and Greece markets with both IQ8 microinverters and IQ batteries. Combined, these new markets represent more than 1.5 gigawatts of residential solar opportunity with countries like the U.K. having a healthy battery attach rate of 30%.

我們目前正在向歐洲許多國家運送 IQ 微型逆變器和電池。我們最近以 IQ8 微型逆變器和 IQ 電池進入了英國、瑞典、丹麥和希臘市場。總的來說，這些新市場代表著超過 1.5 千兆瓦的住宅太陽能機會，其中英國等國家的電池配售率已達 30%。

I'll provide some brief commentary on Australia. Our revenue in Australia more than doubled year-on-year. We are quite pleased with the launch of our Enphase Energy system, it is state-of-the-art powered by IQ8 microinverters plus a third-generation battery.

我將對澳洲做一些簡短的評論。我們在澳洲的營收年增了一倍多。我們對 Enphase Energy 系統的推出感到非常高興，它是由 IQ8 微型逆變器和第三代電池供電的最先進的系統。

Let me comment on rest of the world. In Brazil, we launched our IQ8P microinverters, 480 watts DC, the highest power microinverters that we have. We also launched the solar graph software platform and have good feedback from installers there. In addition, we started shipping both the 384-watt IQ8HC and the 480 watts IQ8P microinverters into India to support high-powered solar panels.

讓我對世界其他地方發表一些評論。在巴西，我們推出了 IQ8P 微型逆變器，480 瓦直流電，這是我們擁有的最高功率微型逆變器。我們也推出了太陽能圖表軟體平台，並得到了安裝人員的良好回饋。此外，我們開始向印度運送 384 瓦 IQ8HC 和 480 瓦 IQ8P 微型逆變器，以支援高功率太陽能板。

Let's now talk about Q4 guidance. We are guiding revenue for Q4 in the range of $300 million to $350 million. This reflects approximately $150 million of channel inventory correction in the U.S. and Europe. In other words, we are undershipping to the end market demand for our products by approximately $150 million. We anticipate undershipment will continue in Q1 and expect our channel inventory to normalize in Q2. Of course, we are conservative and assuming the demand picture is unchanged from the current level.

現在讓我們來談談第四季的指引。我們預計第四季的營收將在 3 億至 3.5 億美元之間。這反映了美國和歐洲約1.5億美元的通路庫存調整。換句話說，我們的產品出貨量比終端市場需求少了約 1.5 億美元。我們預計第一季出貨量不足的情況將持續，並預計我們的通路庫存將在第二季恢復正常。當然，我們比較保守，假設需求狀況與目前水準保持不變。

So what has changed since 90 days ago when we told you that the inventory levels would normalize by the end of Q3. We have seen a substantial demand reduction in Europe. We've also seen the U.S. market continue to fall, driven by California. When the demand falls, we think more decisive inventory correction becomes necessary. We are being conservative in our assumptions of no demand recovery until Q2 in this framework. So that explains the guidance.

那麼，自 90 天前我們告訴您庫存水準將在第三季末恢復正常以來，發生了什麼變化？我們看到歐洲的需求大幅減少。我們也看到，受加州影響，美國市場持續下跌。當需求下降時，我們認為有必要更果斷地調整庫存。在此框架下，我們保守地假設直到第二季需求才會復甦。這就解釋了該指導意見。

Despite the large reduction in Q4 guidance, we are maintaining our non-GAAP gross margin above 40% in our guidance without the IRA benefit. We aren't making any broad-based pricing changes at this time on microinverters, and we have already made the necessary changes on batteries before. Our pricing and operations team are doing an excellent job of managing pricing and reducing costs.

儘管第四季指引大幅下調，但在不考慮 IRA 收益的情況下，我們的非 GAAP 毛利率仍維持在 40% 以上的指引水準。我們目前不會對微型逆變器的價格做出任何廣泛的調整，我們之前已經對電池做出了必要的更改。我們的定價和營運團隊在管理定價和降低成本方面做得非常出色。

Let's discuss some market trends. I'll give you a little more than usual color on markets. Let's split the U.S. market by non-California states and California. For non-California states, the sell-through of our microinverters was 4% lesser in Q3 compared to Q2. We see this business starting to stabilize, given the weekly sell-through trends.

讓我們討論一些市場趨勢。我將向您提供比平常更多一些的市場資訊。讓我們將美國市場按加州以外的各州和加州劃分。對於加州以外的各州，我們第三季微型逆變器的銷售量比第二季下降了 4%。從每週的銷售趨勢來看，我們看到這項業務開始穩定下來。

In California, the sell-through of our microinverters was 25% lesser in Q3 compared to Q2 due to the NEM 3.0 transition. It will take a few more quarters for our installers to fully transition to NEM 3.0 and normalize sales to NEM 2.0 levels. Utility rates are continuing to move higher in California with one California utility recently requesting a 22% rate hike. Assuming that even half of that rate hike is approved by the CPUC, the payback period for a NEM 3.0 solar plus a battery system will become close to a NEM 2.0 solar-only system. So that's good.

在加州，由於 NEM 3.0 轉型，我們第三季微型逆變器的銷售量比第二季下降了 25%。我們的安裝人員還需要幾個季度才能完全過渡到 NEM 3.0，並將銷售正常化到 NEM 2.0 水平。加州的公用事業費率持續上漲，一家加州公用事業公司最近要求提高 22% 的費率。假設加州公用事業委員會 (CPUC) 批准一半的漲價幅度，那麼 NEM 3.0 太陽能加電池系統的投資回收期將接近 NEM 2.0 純太陽能係統的投資回收期。這很好。

Let me say a few words about U.S. market share before I give more color on Europe. We see stable share today for our microinverters based on both internal as well as third-party data. Competition is not new for us. We have always relied on our differentiated technology with our distributed AC architecture, product quality and customer service to win share, and we expect this to continue. We have many tools at our disposal such as the installer services that we have bought -- we made several acquisitions over time in the last couple of years such as the software tool for design and proposal, the permitting tools, lead management, et cetera. We have a lot of tools at our disposal to help our installers and our partnerships go a lot deeper in the downturn.

在進一步介紹歐洲之前，我想先談談美國市場份額。根據內部和第三方數據，我們看到目前我們的微型逆變器的份額穩定。競爭對我們來說並不是什麼新鮮事。我們一直依靠差異化技術、分散式空調架構、產品品質和客戶服務來贏得份額，我們希望這種情況能持續下去。我們擁有許多可用的工具，例如我們購買的安裝服務——過去幾年中，我們進行了多次收購，例如用於設計和提案的軟體工具、許可工具、潛在客戶管理等等。我們有許多工具可以幫助我們的安裝人員和合作夥伴在經濟低迷時期取得更大進步。

Let's talk about Europe demand a little bit. We are facing 2 challenges in Europe, and the situation has dramatically changed from the last quarter -- from 90 days ago. We saw a much weaker demand recovery from summer. We also see a lot of distributors facing oversupply of solar equipment, particularly panels, leading to much more aggressive destocking. Despite this temporary weakness, we think that the pullback in Europe will be temporary as the fundamentals remain strong and we are relatively underpenetrated in the U.S. We are entering a lot -- lots of new geographies with our IQ8 microinverters and batteries. So we remain very bullish about Europe.

我們來談談歐洲的需求。我們在歐洲面臨兩大挑戰，與上一季、也就是90天前相比，情況發生了巨大變化。我們發現夏季以來需求復甦動能明顯減弱。我們也看到許多經銷商面臨太陽能設備（特別是太陽能板）供應過剩的問題，導致更積極的去庫存化。儘管存在暫時的疲軟，但我們認為歐洲的回調將是暫時的，因為基本面依然強勁，而且我們在美國相對滲透不足。因此我們仍然對歐洲非常看好。

Let me spend a few minutes discussing our 3 largest markets in Europe, the Netherlands, France and Germany in detail. In Netherlands, our largest European market, our Q3 sell-through was down 40% compared to Q2. This was our first sequentially down quarter in the last 2 years. Installers tell us that the customers fear of an export penalty and confusion around ending of the net metering has caused the market pull back. I was in Netherlands 2 weeks ago. I visited with our leading installers, I came away confident that this pullback will be short lived. We think that the plan for net metering will be clarified after the country's elections in November. The payback period are continuing to be attractive in Netherlands. In addition, total system solutions, which includes batteries, solar and EV chargers are going to become the norm as dynamic tariffs become more prevalent in Netherlands. We are well positioned to take advantage of these changes.

讓我花幾分鐘詳細討論我們在歐洲的三大市場，荷蘭、法國和德國。在我們最大的歐洲市場荷蘭，第三季的銷售量與第二季相比下降了 40%。這是我們近兩年來首次出現連續下滑的季度。安裝人員告訴我們，客戶擔心出口罰款和終止淨計量的混亂導致了市場回落。我兩週前在荷蘭。我拜訪了我們的主要安裝人員，我相信這種回調將是短暫的。我們認為，淨計量計畫將會在11月國家大選後明確。荷蘭的回報期持續具有吸引力。此外，隨著動態關稅在荷蘭變得越來越普遍，包括電池、太陽能和電動車充電器在內的整體系統解決方案將成為常態。我們已做好準備，可以利用這些變化。

In France, our Q3 sell-through was down 34% compared to Q2, driven by seasonality. We see potential for this market to rebound very quickly. We are already seeing that as utility rates recently moved higher and are expected to increase even more in early 2024.

在法國，由於季節性因素，我們第三季的銷售量與第二季相比下降了 34%。我們看到這個市場有快速反彈的潛力。我們已經看到，公用事業費率最近有所上漲，預計到 2024 年初還會進一步上漲。

In Germany, our Q3 sell-through was down 32% compared to Q2. We saw strong sequential growth in installer count and activations, and we are continuing to gain traction there.

在德國，我們第三季的銷售量與第二季相比下降了 32%。我們看到安裝數量和激活量連續強勁增長，我們正在繼續獲得發展動力。

Let's talk about our new products, IQ batteries. Our sell-through for batteries has been steadily increasing over the last couple of quarters. We are at an inflection point for our battery business. With our IQ Battery 5P, we can deliver the best power specs and the best commissioning times of any Enphase battery till date at an industry-leading 15-year warranty and at the right price point. The battery adoption rates are on the rise globally. We are well positioned to grow battery sales throughout 2024, and we are working on entering even more countries in Europe and Asia in the next few months with our IQ Battery 5P. In addition, we expect to introduce our fourth generation battery in the middle of 2024. That will have a much reduced form factor and a reduced cost structure.

讓我們來談談我們的新產品IQ電池。過去幾個季度，我們的電池銷售量一直穩定成長。我們的電池業務正處於轉折點。憑藉我們的 IQ Battery 5P，我們可以提供迄今為止任何 Enphase 電池的最佳功率規格和最佳調試時間，並提供業界領先的 15 年保固和合適的價格。全球範圍內的電池採用率正在上升。我們已準備好在 2024 年實現電池銷量的成長，並且我們正在努力在未來幾個月內透過 IQ Battery 5P 進入歐洲和亞洲的更多國家。此外，我們預計在 2024 年中期推出第四代電池。

As previously discussed, we have entered many new markets with the IQ 8 family of microinverters. We plan to enter many more new markets in Europe and Asia in the next several months.

如同前面所討論的，我們已經憑藉 IQ 8 系列微型逆變器進入了許多新市場。我們計劃在未來幾個月進入歐洲和亞洲更多新市場。

Let's talk about our latest microinverter for the residential segment in emerging markets. I did mention this before. This is the IQ8P microinverter, our highest power microinverter till date, 480 watts of AC power, that can support solar panels up to 650-watt DC for Brazil, India, South Africa, Mexico, Spain and other emerging markets. We have started shipping the product into Brazil, South Africa and India in Q3 and are on track to start shipping in Mexico and Spain in Q4.

讓我們來談談我們針對新興市場住宅領域的最新微型逆變器。我之前確實提到過這一點。這是 IQ8P 微型逆變器，也是我們迄今為止功率最高的微型逆變器，交流電為 480 瓦，可支援高達 650 瓦直流的太陽能板，適用於巴西、印度、南非、墨西哥、西班牙和其他新興市場。我們已於第三季開始將產品運送到巴西、南非和印度，並計劃於第四季開始向墨西哥和西班牙運送。

The other variant of the IQ8 microinverter -- IQ8P microinverter with a new 3-phase cabling system is well suited for small commercial solar installations, ranging from 20 to 200 kilowatts. We are doing beta installations as we speak there, and we expect to release the product this quarter into the U.S. market. We are very bullish about the small commercial solar business where we believe we can add value to our business owners and installers with our quality and good customer experience.

IQ8 微型逆變器的另一種變體——帶有新型三相電纜系統的 IQ8P 微型逆變器非常適合 20 至 200 千瓦的小型商業太陽能裝置。我們正在進行測試安裝，並預計本季將產品推向美國市場。我們對小型商業太陽能業務非常看好，我們相信憑藉我們的品質和良好的客戶體驗，我們可以為我們的企業主和安裝商增加價值。

Let's cover EV charging. We shipped over 3,500 chargers in Q3 compared to over 6,600 chargers in Q2. We launched our IQ smart EV chargers in the U.S. just a few days ago, both U.S. and Canada, actually. The IQ EV charger is Wi-Fi-enabled. It includes smart control and smart monitoring capabilities. It seamlessly integrates into our solar and battery systems to help homeowners maximize savings, for example, by directly charging from solar energy only, that's called green charging. We are also working on developing IQ EV chargers for many countries in Europe, and we expect to introduce them in the middle of 2024.

讓我們來討論一下電動車充電。我們在第三季出貨了超過 3,500 個充電器，而第二季出貨了超過 6,600 個充電器。實際上，幾天前我們在美國和加拿大都推出了我們的 IQ 智慧電動車充電器。 IQ EV 充電器支援 Wi-Fi。它包括智慧控制和智慧監控功能。它無縫整合到我們的太陽能和電池系統中，幫助房主最大限度地節省開支，例如，僅透過太陽能直接充電，這就是所謂的綠色充電。我們也正在為歐洲許多國家開發 IQ EV 充電器，預計將在 2024 年中期推出。

Let's now discuss our installer platform briefly. Solargraf, our cloud-based design and proposal software platform, now provides NEM 3.0 functionality for solar and battery systems in California. We are now offering 3D and shading features and continue to make progress on our new features and functions. The software platform is now available to installers in U.S., Germany, Austria and Brazil. We expect to make this software release as part of our standard offering to any country that we enter.

現在讓我們簡單討論一下我們的安裝程式平台。 Solargraf 是我們基於雲端的設計和提案軟體平台，現在為加州的太陽能和電池系統提供 NEM 3.0 功能。我們現在提供 3D 和陰影功能，並繼續在新功能和功能方面取得進展。該軟體平台目前可供美國、德國、奧地利和巴西的安裝人員使用。我們期望將此軟體版本作為我們向進入的任何國家提供的標準產品的一部分。

Let me conclude. We are managing through a slowdown in our overall demand. In the U.S., it is due to high interest rates on NEM 3.0. In Europe, it is due to broad macroeconomic conditions. Despite this, we are very bullish about our business long term. We see several positive drivers that will accelerate adoption, such as the 30% ITC tax credit in the U.S., rising utility rates globally, increased grid instability also globally, climate change and, of course, increasing EV adoption worldwide. We have no doubt that these will drive meaningful solar plus battery growth.

讓我來總結一下。我們正在應對整體需求放緩的問題。在美國，這是由於 NEM 3.0 的利率較高。在歐洲，這是由於廣泛的宏觀經濟狀況所致。儘管如此，我們對我們的長期業務非常樂觀。我們看到了幾個將加速採用的積極驅動因素，例如美國 30% 的 ITC 稅收抵免、全球公用事業費率的上漲、全球電網不穩定性增加、氣候變化，當然還有全球電動車採用率的提高。我們毫不懷疑這些將推動太陽能和電池領域的有意義成長。

Our strategy is very clear. We manage for the long term. We are doubling down on our relationships with our customers during these times. We are driving down installation times and investing in our customer service teams. We are also strongly investing in innovation. We are working on IQ9 and IQ10, our next 2 generations of microinverters as well as the next 2 generations of batteries. We are also rapidly expanding worldwide with systems comprising of IQ8 microinverters, IQ batteries, IQ EV chargers and home energy management software. We are introducing products for the small commercial and emerging residential solar markets, and we are making continuous enhancements to our installer platform in addition to driving towards world-class cost on our products. We remain very positive about our future growth and profitability, and we'll continue to make best-in-class home energy systems with a laser focus on innovation, quality and customer experience.

我們的策略非常明確。我們進行的是長期管理。在此期間，我們加倍重視與客戶的關係。我們正在縮短安裝時間並投資我們的客戶服務團隊。我們也大力投資創新。我們正在研發IQ9和IQ10，這是我們的下一代兩代微型逆變器以及下一代兩代電池。我們也正透過由 IQ8 微型逆變器、IQ 電池、IQ EV 充電器和家庭能源管理軟體組成的系統在全球範圍內迅速擴張。我們正在為小型商業和新興住宅太陽能市場推出產品，並且在努力實現產品世界一流的成本的同時，我們也在不斷改進我們的安裝平台。我們對未來的成長和獲利能力仍然非常樂觀，我們將繼續專注於創新、品質和客戶體驗，打造一流的家庭能源系統。

With that, I will turn the call over to Mandy for her review of our financial results. Mandy?

說完這些，我將把電話轉給 Mandy，讓她審查我們的財務結果。曼迪？

Thanks, Badri, and good afternoon, everyone.

謝謝，巴德里，大家下午好。

I will provide more details related to our third quarter of 2023 financial results as well as our business outlook for the fourth quarter of 2023. We have provided reconciliations of these non-GAAP to GAAP financial measures in our earnings release posted today, which can also be found in the IR section of our website.

我將提供更多與我們 2023 年第三季度財務業績以及 2023 年第四季度業務展望相關的詳細信息。

Total revenue for Q3 was $551.1 million. We ship approximately 1,585.6 megawatts DC of microinverters and 86.2 megawatt hours of IQ batteries in the quarter.

第三季總營收為 5.511 億美元。本季度，我們出貨了約 1,585.6 兆瓦直流微型逆變器和 86.2 兆瓦時的 IQ 電池。

Non-GAAP gross margin for Q3 was 48.4% compared to 46.2% in Q2. The increase was driven by increased net IRA benefit. GAAP gross margin was 47.5% for Q3, given non-GAAP gross margin for Q3 included $14.5 million of net IRA benefit for our microinverters made in the U.S. and shipped to customers in the quarter.

第三季非公認會計準則毛利率為 48.4%，第二季為 46.2%。成長的主要原因是 IRA 淨收益增加。第三季的 GAAP 毛利率為 47.5%，因為第三季的非 GAAP 毛利率包括我們在美國生產並於本季度發貨給客戶的微型逆變器的 1,450 萬美元淨 IRA 收益。

Non-GAAP operating expenses were $99 million for Q3 compared to $98.2 million for Q2. We are diligently managing operating expenses and we'll continue to do so in the coming quarters. GAAP operating expenses were $144 million for Q3, compared to $153 million for Q2. GAAP operating expenses for Q3 included $41.1 million of stock-based compensation expenses and $3.9 million of amortization for acquired intangible assets.

第三季非公認會計準則營業費用為 9,900 萬美元，而第二季為 9,820 萬美元。我們正在努力管理營運費用，並將在未來幾個季度繼續這樣做。第三季 GAAP 營業費用為 1.44 億美元，而第二季為 1.53 億美元。第三季的 GAAP 營業費用包括 4,110 萬美元的股票薪資費用和 390 萬美元的收購無形資產攤銷費用。

On a non-GAAP basis, income from operations for Q3 was $167.6 million, compared to $230.5 million for Q2. On a GAAP basis, income from operations was $118 million for Q3 compared to $170.3 million for Q2. On a non-GAAP basis, net income for Q3 was $141.8 million compared to $205.6 million for Q2. This resulted in non-GAAP diluted earnings per share of $1.02 for Q3 compared to $1.47 for Q2. GAAP net income for Q3 was $114 million compared to GAAP net income of $157.2 million for Q2. This resulted in GAAP diluted earnings per share of $0.80 for Q3, compared to $1.09 for Q2.

以非公認會計準則計算，第三季營業利潤為 1.676 億美元，而第二季營業利潤為 2.305 億美元。根據 GAAP 計算，第三季營業收入為 1.18 億美元，而第二季營業收入為 1.703 億美元。以非 GAAP 計算，第三季淨收入為 1.418 億美元，而第二季淨收入為 2.056 億美元。這導致第三季非 GAAP 稀釋每股收益為 1.02 美元，而第二季為 1.47 美元。第三季的 GAAP 淨收入為 1.14 億美元，而第二季的 GAAP 淨收入為 1.572 億美元。這導致第三季的 GAAP 攤薄每股收益為 0.80 美元，而第二季為 1.09 美元。

We exited Q3 with a total cash, cash equivalents and marketable securities balance of $1.78 billion compared to $1.8 billion at the end of Q2. As part of our $1 billion share repurchase program authorized by our Board of Directors in July 2023, we repurchased approximately 847,000 shares of Enphase common stock in Q3 at an average share price of $129.92 for $110 million. In addition, we spent approximately $8.5 million by withholding shares to cover reporting taxes for employees (inaudible) in Q3. That reduced the diluted shares by approximately 59,800 shares. We expect to continue this anti-dilution plan.

我們在第三季結束時的現金、現金等價物和有價證券總餘額為 17.8 億美元，而第二季末為 18 億美元。作為我們董事會於 2023 年 7 月批准的 10 億美元股票回購計畫的一部分，我們在第三季以平均每股 129.92 美元的價格回購了約 847,000 股 Enphase 普通股，回購金額為 1.1 億美元。此外，我們在第三季還花了約 850 萬美元扣留股票來支付員工的申報稅（聽不清楚）。這導致稀釋股份減少約 59,800 股。我們希望繼續這項反稀釋計劃。

In Q3, we generated $145.9 million in cash flow from operations and $122 million in free cash flow. Despite the macroeconomic challenges, we continue to generate healthy free cash flow as a result of our strong financial discipline. Capital expenditure was $23.8 million for Q3 compared to $44 million for Q2. Capital expenditure requirements decreased as we largely completed building out our U.S. manufacturing line.

第三季度，我們產生了 1.459 億美元的營運現金流和 1.22 億美元的自由現金流。儘管面臨宏觀經濟挑戰，但由於我們嚴格的財務紀律，我們繼續產生健康的自由現金流。第三季的資本支出為 2,380 萬美元，而第二季的資本支出為 4,400 萬美元。隨著我們基本上完成美國生產線的建設，資本支出需求減少了。

Now let's discuss our outlook for the fourth quarter of 2023. We expected our revenue for Q4 to be within a range of $300 million to $350 million which includes shipments of 80 to 100-megawatt hours of IQ batteries. We expect gross margin to be within the range of 46% to 49% with net IRA benefit and 38% to 41% before net IRA benefit. We expect non-GAAP gross margin to be within a range of 48% to 51% with net IRA benefit and 40% to 43% before net IRA benefit. Non-GAAP gross margin excludes stock-based compensation expenses and acquisition-related amortization. We expect the net IRA benefit to be between $26 million and $28 million, an estimated shipment of 1 million units of U.S. manufactured microinverters.

現在讓我們討論一下我們對 2023 年第四季的展望。我們預計，計入淨 IRA 收益後的毛利率將在 46% 至 49% 之間，計入淨 IRA 收益前的毛利率將在 38% 至 41% 之間。我們預計，計入淨 IRA 收益後非 GAAP 毛利率將在 48% 至 51% 之間，計入淨 IRA 收益前非 GAAP 毛利率將在 40% 至 43% 之間。非公認會計準則毛利率不包括股票薪酬費用及收購相關攤銷。我們預計 IRA 淨收益將在 2,600 萬美元至 2,800 萬美元之間，預計美國製造的微型逆變器出貨量為 100 萬台。

We expect our GAAP operating expenses to be within the range of $142 million to $146 million, including approximately $57 million estimated for stock-based compensation expenses and acquisition-related expenses and amortization. We expect our non-GAAP operating expenses to be within a range of $85 million to $89 million. We are reducing our non-GAAP operating expenses by 12% in Q4 as compared to Q3, but we will not compromise our investing in customer service, innovation and sales.

我們預計我們的 GAAP 營業費用將在 1.42 億美元至 1.46 億美元之間，其中包括約 5,700 萬美元的股票薪酬費用和收購相關費用及攤銷。我們預計非公認會計準則下的營業費用將在 8,500 萬美元至 8,900 萬美元之間。與第三季相比，我們將第四季的非 GAAP 營運費用減少了 12%，但我們不會損害對客戶服務、創新和銷售的投資。

Moving to tax. Since we have utilized most of our net operating loss and research tax credit carryforwards, we are now a significant U.S. cash taxpayer. We expect GAAP and non-GAAP annualized effective tax rate for 2023 to be at 22% plus or minus 1% with IRA benefit. We expect the production credit net of any incremental costs for domestic manufacturing to be in the range of $26 to $28 per microinverter sold to customers in Q4. We expect to ship 1 million microinverters to customers this quarter. We now have all 3 of our U.S. manufacturing facilities operational.

轉向稅收。由於我們已經利用了大部分淨營業虧損和研究稅收抵免結轉，我們現在是美國重要的現金納稅人。我們預計 2023 年 GAAP 和非 GAAP 年度有效稅率為 22%（含 IRA 福利，上下浮動 1%）。我們預計，第四季度國內製造的生產信用淨額扣除任何增量成本後將在每台銷售給客戶的微型逆變器 26 美元至 28 美元之間。我們預計本季將向客戶出貨100萬台微型逆變器。目前，我們位於美國的 3 家製造工廠都已投入營運。

With that, I will open the line for questions.

現在，我將開始回答大家的提問。

(Operator Instructions)

（操作員指令）

At this time, we will take our first question, which will come from Brian Lee with Goldman Sachs.

現在，我們將回答第一個問題，來自高盛的 Brian Lee。

I know the environment is pretty uncertain, so I appreciate the additional sort of out quarter visibility in some of the market-by-market color, Badri. So can I just ask, as you think about the framework, you said you'd undership in Q1 the way that you're undershipping in Q3 and Q4. Can you give us one, a sense of how much you expect to undership in Q1? And then you made the comment that this is all contingent upon sort of demand trends staying about where they're at. Can you give us a sense of what your internal expectations for demand trends are? It sounds like you don't expect them to get worse, but sort of can you quantify that a bit? And then I have a follow-up.

我知道環境是相當不確定的，所以我很欣賞一些市場因素所帶來的額外的季度外可見性，巴德里。所以我能否問一下，當您考慮框架時，您說過您會在 Q1 中提供不足，就像您在 Q3 和 Q4 中提供不足一樣。您能否告訴我們，預計第一季的出貨量不足多少？然後您評論說，這一切都取決於需求趨勢的維持。您能否告訴我們您對需求趨勢的內部預期是什麼？聽起來你不認為情況會變得更糟，但你能稍微量化一下嗎？然後我有一個後續問題。

Yes. I think there are a few puts and takes. First, to answer your question is, is the undershipment going to be close to $150 million in Q1? We expect it to be a little bit less than $150 million, but not too much less. That's our expectation.

是的。我認為存在一些得失。首先，回答你的問題是，第一季的出貨量不足是否會接近 1.5 億美元？我們預計這個數字會略低於 1.5 億美元，但不會少太多。這是我們的期望。

And second is I will talk about markets and then it will become clear to you. First of all, we see the -- on California state stabilizing. We see that. So therefore, we aren't that much worried there. Of course, things could go a lot south during the winter, but we are already at pretty low levels. So we don't think so. California is definitely a wild card. But even if that goes down 10% more, I think we'll be fine because we expect Europe to recover a little more.

其次，我將談論市場，然後你們就會清楚了。首先，我們看到加州的情況正在穩定下來。我們看到了。因此，我們並不太擔心。當然，冬季情況可能會進一步惡化，但我們已經處於相當低的水平。所以我們不這麼認為。加州絕對是一張未知數。但即使再下降 10%，我認為我們也會沒事，因為我們預計歐洲將會復甦更多。

Europe right now, for all the reasons I said, we basically are undershipping quite a bit in order to normalize inventory. And that will be the fastest to normalize. So we expect Europe revenue to come back a little bit up in Q1. Therefore, what we expect, at least -- what we expect internally is that our revenues, selling revenues, we think will be close to what we are looking at in Q4. Of course, I don't have a crystal ball. I'm not giving you Q1 guidance but this is our expectation right now.

目前，由於我剛才提到的所有原因，在歐洲，我們基本上是在減少出貨量，以使庫存正常化。這將是最快的正常化方式。因此我們預計歐洲收入在第一季將略有回升。因此，我們至少預期——我們內部預期的是，我們的收入、銷售收入將接近第四季的水平。當然，我沒有水晶球。我不會給你第一季的指引，但這是我們目前的預期。

And Q2 onwards, we think the channel inventory is going to approach normalized levels. And therefore, that normalized level, assuming the demand picture is unchanged, that normal level is what we said roughly around $450 million to $500 million is the normal level. That assumes no change in demand from the current situation. So we expect our revenue to approach that number in the second quarter. But of course, that doesn't tell you too much because I'm assuming that the demand is the same as the current depressed level.

從第二季開始，我們認為通路庫存將接近正常水準。因此，假設需求狀況沒有改變，正常水準就是我們所說的大約 4.5 億至 5 億美元的正常水準。假設需求與當前情況相比沒有變化。因此我們預計第二季的營收將接近這個數字。但當然，這並沒有告訴你太多，因為我假設需求與當前低迷的水平相同。

One thing which I forgot to say is in France, which is another very big market for us. We already see the sell-through rates, for example, in the first 3 weeks of this quarter are already back up high which is good. Basically, the utility -- there was a utility rate hike in August. There is one more expected in February. So we think France will recover fast. Netherlands, we have some education to do. Like what I told you, the -- there is some political uncertainty there. We think that will get cleared after Q4. So I think Q1 will be definitely better. And that's a great market. Where that market is now, in addition to solar, I think with the dynamic tariffs starting to become prevalent in Netherlands, there is opportunity for battery storage in 7 million homes.

我忘了說的一件事是法國，這對我們來說也是非常大的市場。例如，我們已經看到本季前三週的銷售率已經回升，這是好事。基本上，公用事業——八月公用事業費上漲了。預計二月還會有一次。因此我們認為法國將會快速復甦。荷蘭，我們還有一些教育工作要做。正如我告訴你的那樣，那裡存在一些政治不確定性。我們認為這個問題將會在第四季後得到解決。所以我認為第一季肯定會更好。這是一個巨大的市場。現在，除了太陽能之外，我認為隨著動態關稅在荷蘭開始盛行，700 萬戶家庭將有機會使用電池儲存。

Today, just so that everybody understands, Netherlands, there is 7 million to 8 million homes. Solar is there in 2.2 million homes today. And now with this opportunity where net metering is going to evolve into something similar to California, not exactly the same, but very similar, what's going to happen is it opens up opportunity for solar plus storage in all 7 million homes. So I think long term, it's going to be great for us, but I told you what's going to happen in the short term.

今天，為了讓大家了解，荷蘭有 700 萬到 800 萬戶家庭。如今已有 220 萬戶家庭使用太陽能。現在有了這個機會，淨計量將發展成為類似於加州的製度，雖然不完全相同，但非常相似，它將為所有 700 萬戶家庭提供太陽能和儲能的機會。所以我認為從長遠來看，這對我們來說是件好事，但我告訴你了短期內會發生什麼。

Yes. That's great context. I appreciate it. Just a second one here, and I'll pass it on. On the margins -- gross margins, non-GAAP, it seems like you're guiding to low 40s ex IRA benefit. How much is that -- it's down a couple of hundred bps from what you've been tracking at recently? How much of that is due to pricing? How much due to mix? Maybe -- can you give us a sense of the margin puts and takes into year-end? And then do you see anything that would put incremental pressure on the margins into next year?

是的。這是非常棒的背景。我很感激。這裡只有第二個，我會傳遞它。在利潤率方面——毛利率、非公認會計準則，似乎你正在引導 40 多歲的前 IRA 福利。那是多少——比您最近追蹤的水平下降了幾百個基點嗎？其中有多少是因為定價造成的？需要混合多少？也許—您能為我們介紹一下年末的利潤投入和利潤收入嗎？那麼，您是否認為有什麼因素會對明年的利潤率造成越來越大的壓力？

It's pretty simple. And Brian, you will understand it quickly. The -- our -- you can see our storage business is actually going a little bit up. Our microinverter business is the one that is going a lot down now because of our undershipment. And therefore, if you see it's a product mix issue and microinverters have a little bit more gross margin than storage. And therefore, with this product mix, that's why we have the guidance of non-GAAP gross margin 40% to 43% for the company without IRA. With IRA, non-GAAP gross margin of 48% to 51%.

這很簡單。布萊恩，你很快就會明白的。您可以看到我們的儲存業務實際上正在略有上升。由於出貨量不足，我們的微型逆變器業務目前正在大幅下滑。因此，如果您發現這是產品組合問題，微型逆變器的毛利率會比儲能的毛利率略高一些。因此，有了這種產品組合，我們可以預期，不含 IRA 的公司非 GAAP 毛利率將達到 40% 至 43%。加上 IRA，非 GAAP 毛利率為 48% 至 51%。

So in terms of pricing, I mean, we are not planning to make any broad-based pricing changes. Of course, the pricing, there is a lot of competition, but we have seen competition for the last few years since I've been here. We have a very disciplined business process. It's a pricing business process. It's called SPA (inaudible) likes to talk about it. It's a special pricing adjustment. We have been doing that forever. And it is not new. That's one.

所以在定價方面，我們不打算進行任何大範圍的價格調整。當然，定價方面競爭非常激烈，但自從我來到這裡，過去幾年我們已經看到了競爭。我們擁有非常嚴謹的業務流程。這是一個定價業務流程。它被稱為 SPA（聽不清楚）喜歡談論它。這是一次特殊的價格調整。我們一直都在這麼做。這並不是什麼新鮮事。那是一個。

And also in these times, of course, underloading, we have to work with our contract manufacturers, take care of underloading, but in these times, especially when you have multiple suppliers for a particular component, multisourcing for a component, this is the opportunity where we can drop costs a lot. So our target -- I mean, any good company in these times, we should be able to drop our cost by 10% for the year. And we'll be targeting that. And so we have to talk both the equations, pricing and cost. And so we are quite confident in our gross margins. This is what we do. It is not new. This is what we established when I joined the company, is we have a pricing team that prices based on value. We have a world-class cost team that works on costs. And it' business as usual for us in these environments.

當然，在這種時候，我們必須與合約製造商合作，解決負載不足的問題，但在這種時候，特別是當某個特定組件有多個供應商時，組件有多個來源，這是我們可以大幅降低成本的機會。所以我們的目標——我的意思是，任何一家優秀的公司，在當今時代，我們都應該能夠將今年的成本降低 10%。我們將以此為目標。因此我們必須討論定價和成本這兩個方程式。因此我們對我們的毛利率非常有信心。這就是我們所做的。這並不是什麼新鮮事。這是我加入公司時我們建立的，我們有一個根據價值定價的定價團隊。我們擁有一支世界一流的成本團隊，負責成本工作。在這樣的環境下，我們的業務一切如常。

Our next question will come from James West with Evercore ISI.

我們的下一個問題來自 Evercore ISI 的詹姆斯·韋斯特。

Badri, as we're going through this period of destocking and some weakness in certain markets, understanding that you've always faced competition and you have a very value-based pricing strategy, are you seeing any behavior that's -- by your competitors that is somewhat irrational? Or is the market overall behaving rationally, understanding that this -- we'll get a few quarters?

巴德里，我們正經歷庫存減少和某些市場疲軟的時期，了解到您一直面臨競爭，並且您有一個非常基於價值的定價策略，您是否看到您的競爭對手有任何不合理的行為？或者市場整體表現是否理性，理解這一點——我們將得到幾個季度？

Well, I'll be lying if I tell you I'm not seeing something irrational. Of course, installers are very stressed, right? They do want to take advantage of the lowest cost available at a given point in time. So therefore, sometimes without understanding, they may want to switch to somebody who's offering low cost. But usually, most of our installers are -- they have a lot of experience. They are very well trained now, and they understand the importance of distributed architecture. They understand the importance of single point -- no single point of failure. They understand quality. They understand customer service. And therefore, you might save a few dollars upfront.

好吧，如果我說我沒有看到一些不合理的事情，那我就是在撒謊。當然，安裝人員壓力很大，對吧？他們確實想利用特定時間點可用的最低成本。因此，有時他們可能在沒有理解的情況下就想轉向提供低成本服務的公司。但通常情況下，我們的大多數安裝人員都具有豐富的經驗。他們現在訓練有素，並且了解分散式架構的重要性。他們了解單點的重要性——沒有單點故障。他們懂得品質。他們懂客戶服務。因此，您可能會預先節省幾美元。

But if you have a quality problem, a service call by the installer is a truck roll, you spend a lot of money in 1 truck roll. And if you just do 1 more, I mean, that's it, you have no more room there despite the low cost. So it's a penny wise pound foolish strategy to do that. And they've all realized it. And if you actually put things in context, let us say the pricing is $3 or $3.50 for one, you look at the inverter bill of materials, probably of the order of 10%. Should you play around there? Should you take a lot of risks there. And it's their call at the end of the day, and many of them are wise to say we're not going to make that call.

但如果出現品質問題，安裝人員打來的維修電話就是上門服務，您需要在一次上門服務上花很多錢。如果你只再做 1 個，我的意思是，就這樣了，儘管成本很低，但那裡沒有更多的空間了。因此，這樣做是因小失大的做法。他們都意識到了這一點。如果你把事情放在實際情況中考慮，假設價格是 3 美元或 3.50 美元，你看一下逆變器的材料清單，大概是 10% 的數量級。你該去那裡玩嗎？你應該在那裡冒很大的風險嗎？最終這是他們的決定，其中許多人明智地說我們不會做出這樣的決定。

So I mean we have a lot of robust discussions. This is the time where we are talking to customers more than ever. We have a lot of other tools at our disposal, for example, Solargraf. We do design and proposal. We can generate leads for installers at very economical rates. We can help them on permitting services, for example, sometimes even free of charge. We have a lot of tools at our disposal to reduce their soft costs. And that's critical because we have to look at everything. We cannot look at component level. We have to look at the full system level in these times. And once you start looking at that and have these discussions usually comes back to, we get more market share, not less. And more installers want to move to us, not less. You can see some evidence of that in the third-party reports.

所以我的意思是我們進行了很多激烈的討論。這是我們與客戶進行更多溝通的時刻。我們還有很多其他工具可供使用，例如 Solargraf。我們做設計和提案。我們可以以非常經濟的價格為安裝人員提供線索。例如，我們可以為他們提供許可服務方面的協助，有時甚至是免費的。我們有很多工具可以用來降低他們的軟成本。這很關鍵，因為我們必須審視一切。我們無法從組件層面來看這個問題。我們現在必須從整個系統層面來看問題。一旦你開始關注這一點並進行討論，通常會得出這樣的結論：我們獲得了更多的市場份額，而不是更少。而且希望轉向我們這裡的安裝人員越來越多，而不是越來越少。您可以在第三方報告中看到一些證據。

Okay. Okay. Got it. That's very helpful. Just one quick follow-up for me. You mentioned producing IQ batteries in the U.S. by middle of 2024. Did you give a capacity number along with that?

好的。好的。知道了。這非常有幫助。我只需要快速跟進。您提到到 2024 年中期將在美國生產 IQ 電池。

No, we have not given. We will provide more details as we come close to that day.

不，我們沒有給。隨著那一天的臨近，我們將提供更多詳細資訊。

Our next question will come from Eric Stine with Craig-Hallum.

我們的下一個問題來自 Craig-Hallum 的 Eric Stine。

So just talking about California, I can appreciate talking or thinking about that as a wildcard, given what's going on in the market. But if I think about the expectation that that market stays flat, but then the hangover from NEM, which you said has a few quarters here left to work out, I don't want to put words in your mouth, but I mean, is it fair to say that there is some cautious optimism about California as we get into the back half of next year?

因此，僅就加州而言，考慮到市場的情況，我可以理解將其作為外卡來談論或思考。但是，如果我考慮到市場保持平穩的預期，但隨後 NEM 的後遺症（您說還要幾個季度才能解決）的影響，我不想替您說話，但我的意思是，當我們進入明年下半年時，是否可以說人們對加利福尼亞州抱有一些謹慎樂觀的態度？

Absolutely, yes. As we get into the back half, absolutely. Meaning one is, the utility rates are continuing to go up. The second is, let's assume the utility rates go up even by half the amount they are advertised, the payback like what I said is going to become -- I mean, for a solar plus storage system is going to become the same as -- almost the same as a solar-only NEM 2.0 system. And the economics are there actually today. The battery cannot only provide resilience, it can help the grid during times of stress. In August and September when the grid needs it the most.

絕對是的。當我們進入後半段時，絕對是如此。意思是，一是公用事業費率持續上漲。第二，讓我們假設公用事業費率上漲，即使只是廣告宣傳的一半，那麼就像我說的，回報將會變得——我的意思是，太陽能加儲能係統的回報將變得幾乎與純太陽能 NEM 2.0 系統相同。如今，經濟狀況確實還存在。電池不僅可以提供彈性，還可以在電網緊張時為其提供幫助。八月和九月是電網最需要電力的時候。

So it's a combination of you get resilience for yourself, you make money by providing grid services, which is incorporated into the utility rates right now. And we are well positioned to doing that. Why? Because we got great microinverters, number one. We got batteries now that can discharge at very high power, double the power of our earlier batteries. Why is that important? Because during certain hours, you have the utility paying you a lot for exporting power to the grid and what we can do because of a high discharge rate, during those times, we can maximize the power. So we can do that. So we have solar plus storage. And of course, we have complete energy management software. And we couple that with our Solargraf design and proposal tool. We have everything. All the optimization at the fingertips of the homeowner. And many times, he needs to do nothing. He just needs to turn on an optimization engine, it will do the right thing for him. So we're absolutely very bullish about California towards the second half of 2024.

因此，這是一種結合，您可以自行獲得恢復能力，並透過提供電網服務賺錢，這已經包含在目前的公用事業費率中。我們完全有能力做到這一點。為什麼？因為我們擁有出色的微型逆變器，所以這是第一。我們現在的電池可以以非常高的功率放電，功率是我們以前電池的兩倍。為什麼這很重要？因為在特定的時段，公用事業公司會向你支付一大筆費用來向電網輸出電力，而由於放電率高，我們可以在那些時段最大限度地利用電力。所以我們可以這樣做。所以我們有太陽能加儲能。當然，我們有完整的能源管理軟體。我們將其與 Solargraf 設計和提案工具結合。我們擁有一切。所有優化均由房主掌控。而且很多時候，他什麼都不用做。他只需要打開優化引擎，它就會為他做正確的事。因此，我們對加州 2024 年下半年的前景非常樂觀。

Got it. And maybe just sticking with California for my follow-up. With NEM, is that whole -- that transition takes place being the biggest factor. I mean, what are some of the other factors that could -- that caused California to be a wild card? What are the things that are maybe top of mind for you that could cause that market to take another leg down?

知道了。也許我的後續行動只會停留在加州。對 NEM 來說，整體而言－轉變的發生是最重要的因素。我的意思是，還有哪些其他因素可能導致加州成為一個不確定因素？您最擔心的可能導致市場再次下滑的因素有哪些？

Yes. This is Raghu. And as Badri mentioned, all of the potential tailwinds that are there, remember, in an environment where the demand per home is continuing to go up, people are continuing to electrify. People are buying more and more EVs, heat pumps, et cetera. And couple that with utility rates where they are and going further up, this is the right solution. Solar plus battery is the right solution. The energy management software is absolutely the right solution in order to drive your ROI and as well as reduce your payback.

是的。這是 Raghu。正如巴德里所提到的，所有潛在的順風都存在，請記住，在每個家庭需求持續上升的環境下，人們正在繼續使用電氣化。人們購買越來越多的電動車、熱泵等等。再加上目前公用事業費率的不斷上漲，這就是正確的解決方案。太陽能加電池是正確的解決方案。能源管理軟體絕對是提高您的投資回報率並減少回報的正確解決方案。

And to that end, what we have done as well is a lot of education into the marketplace in terms of explaining to people what the benefits of solar plus battery system with energy management and et cetera, and going out there and educating the market as well as providing them with a lot of tools. So in this environment where demand is going up, you have the education, you have the tools. The financials are there, the payback is very good. That's the reason why we are extremely bullish about California coming back strongly.

為此，我們也對市場進行了大量的宣傳，向人們解釋太陽能加電池系統在能源管理等方面的益處，並且走出去對市場進行宣傳教育，為他們提供大量工具。因此，在這種需求不斷上升的環境中，您擁有教育，擁有工具。財務狀況良好，回報非常好。這就是我們非常看好加州強勢復甦的原因。

So to answer the question in another way, the headwinds are -- headwinds that we see are installers aren't educated by us properly. If we don't do a good job of educating the installers, things can stall out a little bit. So it is important for us and other companies too in this space to make sure the installers, whatever we provide installers, the tools are very easy to use so that they can sit in the kitchen table and look at the homeowner in the eye and say, your payback is 6 years. And here is why your payback is 6 years and explain to them very confidently. And it's not just Enphase, it is Enphase plus our competition plus all of the energy companies. All of us have to do a job in training the installers. And I think that is, of course -- that's a piece that is not very easy to do. And you cannot have enough of it. So that's the biggest headwind that I see.

換句話說，我們看到的阻力在於安裝人員沒有得到我們的正確訓練。如果我們沒有很好地培訓安裝人員，事情可能會有點停滯。因此，對於我們以及該領域的其他公司來說，重要的是確保安裝人員（無論我們提供什麼）使用的工具非常容易使用，以便他們可以坐在廚房的桌子前，看著房主的眼睛說，你的回報期是 6 年。這就是為什麼您的回報期是 6 年，並且非常自信地向他們解釋。這不僅僅是 Enphase，而是 Enphase 加上我們的競爭對手以及所有能源公司。我們所有人都必須承擔培訓安裝人員的工作。我認為這當然是一件不太容易做到的事。並且你永遠不會厭倦它。這是我所看到的最大的阻力。

Our next question will come from Colin Rusch with Oppenheimer.

我們的下一個問題來自奧本海默公司的科林·拉什。

Can you talk a little bit about how much modulation you can do with the OpEx as you look at investing in these incremental programs and bringing these products to market, is there some incremental cutting that you can do? Or there's going to be a regular spend increase on the R&D side?

您能否談談，在考慮投資這些增量項目並將這些產品推向市場時，您可以對營運支出 (OpEx) 進行多少調整，是否可以進行一些增量削減？或是研發方面的支出會定期增加？

No. I mean, we are cutting OpEx by 12% from Q3 to Q4. How are we doing that? We are on a hiring freeze, except for critical positions, for example, in sales and customer service and to a little bit on the innovation side there. So basically, that has got a big effect on bringing down costs.

不。我們該如何做呢？我們目前正在暫停招聘，但銷售、客戶服務等關鍵職位以及創新方面的少數職位除外。因此從根本上來說，這對降低成本有很大作用。

The other ones are there are a few professional expenses like, for example, this is the time where we look at a lot of fat -- cutting out a lot of fat in the company. For example, when the companies are doing well, we do hire a lot of contractors and we are looking at all of those and we have taken all the necessary actions to cut that level as well. And of course, as we continue to grow, I can -- I cannot deny that there is some fat that we found we can easily cut in other areas. We're able to cut about 12%. We are always looking for further room to cut because we'd like to get back to our baseline of OpEx pretty quickly, which is 15% of sales. So we'll give the guidance accordingly. And of course, this is a dislocation in revenue, and that is temporary. But we are very cognizant of that. And we are always going to be trying to operate close to our model which is 15% of sales.

其他的包括一些專業費用，例如，這是我們在考慮削減公司大量開支的時候。例如，當公司經營良好時，我們確實會僱用很多承包商，我們正在關注所有這些，並且我們已經採取了一切必要的措施來削減這一水平。當然，隨著我們的不斷發展，我不能否認，我們發現在其他領域可以輕鬆削減一些開支。我們能夠削減約 12%。我們一直在尋找進一步削減的空間，因為我們希望盡快回到營運支出的基線，即銷售額的 15%。因此我們將給予相應的指導。當然，這是一種收入錯位，而且是暫時的。但我們非常清楚這一點。我們將始終努力以接近我們模式的模式運營，即銷售額的 15%。

Excellent. And then on the component side, given the change in volumes that you guys are working through on the microinverter side, obviously, you're guiding to reasonably stable gross margins here, but I'm assuming that there's going to be some breakpoints on the components that you may run into with a negative impact. Can you just talk a little bit about how your suppliers are scaling down with you here over the next quarter or 2 or 3 and what that might do to your COGS line?

出色的。然後在組件方面，考慮到你們在微型逆變器方面處理的數量變化，顯然，你們在這裡引導的毛利率是相當穩定的，但我認為你們在組件上會遇到一些斷點，可能會產生負面影響。您能否簡單談談未來 2 或 3 個季度您的供應商將如何縮減規模，以及這會對您的 COGS 線產生什麼影響？

Yes. I mean it is a tough situation for our contract manufacturers, no question. And -- but we have great partners here. We have Flex, amazing partner who helped us when we were -- especially 2017, 2018, when we had some tough times, they were there right with us. Salcomp also, a great partner. So we work well together. We do have -- this is the time where both of us can recognize saying, okay, is this a short-term problem? Is this a long-term problem? Can we do things structurally. We recognize that both of us need to be profitable, not just one versus the other. And we do take some necessary actions. And all of those are confidential in terms of our relationships, I mean we cannot disclose the actions we are taking, but our P&L always incorporates all of these. And so the message is over the next few quarters, we will continue to work with them. We will give you the P&L transparently in the guidance for gross margin. But we are very confident that we are finding the right solutions working together.

是的。我的意思是，毫無疑問，這對我們的合約製造商來說是一個艱難的處境。而且——但我們在這裡有很好的合作夥伴。我們有 Flex，我們非常出色的合作夥伴，在我們遇到困難的時候給了我們幫助——尤其是在 2017 年、2018 年，當我們遇到困難的時候，他們一直陪伴著我們。 Salcomp 也是很好的合作夥伴。因此我們合作得很好。我們確實有——這是我們雙方都能認識到說，好吧，這是一個短期問題嗎？這是一個長期問題嗎？我們能否結構化地做事？我們認識到，雙方都需要獲利，而不是一方對抗另一方。我們確實採取了一些必要的行動。就我們的關係而言，所有這些都是保密的，我的意思是我們不能透露我們正在採取的行動，但我們的損益表總是包含所有這些。因此，在接下來的幾個季度裡，我們將繼續與他們合作。我們將在毛利率指引中向您透明地提供損益表。但我們非常有信心，透過共同努力，我們能夠找到正確的解決方案。

Our next question will come from Philip Shen with ROTH Capital.

我們的下一個問題來自羅仕證券 (ROTH Capital) 的 Philip Shen。

Badri, you brought up SPAs. So I figured I jump in with a question on that. As you know, our checks have come up with lower micro pricing under a bunch of SPA agreements on the order of 10%. Does that resonate with you at all? Or is that off base? I know you often will get something in return for some kind of price when you negotiate the SPAs, maybe exclusivity or higher volume. Can you just talk through that a little bit?

巴德里，你提到了 SPA。因此我想我應該就此提出一個問題。如您所知，我們的檢查顯示，一系列 SPA 協議下的微觀定價降低了約 10%。這是否引起了你的共鳴？還是這是錯誤的？我知道，當你協商 SPA 時，你通常會以某種價格獲得一些回報，可能是獨家經營權或更高的銷售。能稍微談談這個問題嗎？

And then, Mandy, can you talk through how SPA accounting might work on your financial statements. For example, do you net the SPA, like the refunds against your sales, you have net sales? Or do you accrue a liability on your balance sheet?

然後，Mandy，您能談談 SPA 會計如何在您的財務報表上發揮作用嗎？例如，您是否將 SPA（如退款）計入銷售額，您有淨銷售額嗎？還是你在資產負債表上累積了負債嗎？

So SPA, first of all, for the others on the call, SPA stands for special pricing adjustment. It is a business process that has been forever at Enphase. And it is always happening. It's business as usual. A large fraction of our business usually happens at what we call as a DLP, which is the distributor list price. And if business happens at DLP, there is no SPA. But for a small fraction of our customers, depending upon how their volumes may go up within the quarter, next quarter, depending on their forecast, we do SPA.

因此，首先，對於電話會議中的其他成員來說，SPA 代表特殊價格調整。這是 Enphase 一直以來的業務流程。而且這種事情一直在發生。一切如常。我們的大部分業務通常發生在所謂的 DLP，即分銷商定價下。如果業務發生在DLP，則不存在SPA。但對於我們的一小部分客戶，我們會根據他們在本季、下個季度的銷售成長情況以及他們的預測，提供 SPA。

SPAs are you have a volume price curve. And when the volume goes up, the price comes down. And that's how it is. And that process is very active. It's always been active. It's the one I instituted 6 years ago when I came and the accounting for that is unchanged, whatever. It is exactly what we have done in the last 6 years. So you talk about it in dollar reduction, all of those are anecdotes, they don't matter. One customer doesn't matter. It's not a trend. It is a large fraction of our customers buy at the least price. So I'd like you to -- if there is a broad-based pricing adjustment, we will tell you. And we are telling you right now that there's no broad-based pricing adjustment from us. Yes, we will continue to do SPA. That's the way of life for us. And sometimes, it is a way for us to lock market share for the next X amount of quarters. And we'll do that. It's business as usual. Nothing new.

SPA 是您擁有的成交量價格曲線。當交易量上升時，價格就會下降。事實就是這樣。並且這個過程非常活躍。它一直很活躍。這是我六年前來時所製定的製度，其會計處理方式始終沒有改變。這正是我們過去六年所做的。所以你談論美元減少的問題，所有這些都只是軼事，這並不重要。一位顧客並不重要。這不是一個趨勢。我們的大部分客戶都是以最低的價格購買的。所以我希望——如果有廣泛的價格調整，我們會告訴你。我們現在告訴您，我們不會進行大範圍的價格調整。是的，我們還會繼續做SPA。這就是我們的生活方式。有時，這是我們鎖定未來 X 個季度市佔率的一種方式。我們會這麼做。一切如常。沒什麼新鮮事。

So Phil, to answer your accounting question, yes, we accrue for SPA rebates as our liability, right? When we recognize revenue, the associated future potential rebates for the current quarter shipping, we accrue a reduction in revenue and it's a liability on our balance sheet. Same accounting process, no change.

那麼 Phil，回答你的會計問題，是的，我們將 SPA 回扣計為我們的負債，對嗎？當我們確認收入時，與本季運輸相關的未來潛在回扣，會導致收入減少，這是我們資產負債表上的一項負債。相同的會計流程，沒有變更。

Great. Okay. And then shifting gears, I appreciate that color. I know you don't have any official guidance for '24. I was wondering if you could talk through how you expect margin to trend by quarter in '24. So you gave some perspective on Q1. There's undershipment there. Close to Q4, so due to product mix, so should we expect Q1 margins to be similar to Q4 because that product mix is maybe more heavily skewed to batteries again? And then due to product mix returning back in this base case to micros, more micros potentially in Q2 after the undershipment in Q4 and Q1, would you expect margins to return back to the pre-undershipment levels in Q2 of '24 and back half next year?

偉大的。好的。然後換個話題，我很欣賞那個顏色。我知道你沒有針對‘24’的任何官方指導。我想知道您是否可以談談您預計 24 年各季度的利潤率趨勢如何。所以你對問題 1 給了一些看法。那裡的出貨量不足。接近第四季度，因此由於產品組合，我們是否應該預期第一季的利潤率與第四季度相似，因為該產品組合可能再次嚴重偏向電池？然後，由於產品組合在此基本情況下回歸到微型產品，在第四季度和第一季度出貨不足之後，第二季度可能會出現更多的微型產品，您是否預計利潤率將在 2024 年第二季度和明年半年回到出貨不足之前的水平？

Yes. I mean, that's logical. It is logical. If Q1 -- what you said is right. We expect similar levels. Of course, I'm not giving guidance, but I'm just giving trends. And then Q2, we expected to because the mix is going to change. The microinverter mix is going to be a little bit higher than the prior quarter. So we expect that logically. That's correct.

是的。我的意思是，這是合乎邏輯的。這是合乎邏輯的。如果 Q1—您說的是正確的。我們預計會出現類似的水平。當然，我不是給指導，只是給出趨勢。然後是第二季度，我們預計，因為組合將會改變。微型逆變器的組合將比上一季略高一些。我們從邏輯上預期這一點。沒錯。

Our next question will come from Mark Strouse with JPMorgan.

我們的下一個問題來自摩根大通的 Mark Strouse。

I believe I asked this on the 2Q call as well. But just kind of given the precipitous decline in valuations across the space, I thought it's worth revisiting. So you're obviously sitting on a pile of cash. You continue to generate cash. Just curious, your latest thoughts on M&A, if that's something that you're planning on leaning into until the macro improves here?

我相信我也在第二季電話會議上問過這個問題。但考慮到整個領域估值的急劇下降，我認為值得重新審視。所以你顯然坐擁大量現金。您繼續產生現金。只是好奇，您對併購的最新想法是什麼，您是否打算在宏觀經濟狀況改善之前繼續關注併購？

Yes. We do take a look at a number of companies all the time, every week. I have an M&A meeting. There are a lot of companies that come. We are very careful, especially in these times to not buy something in a hurry. We're also careful of making sure that that company is aligned, of course, in terms of strategic fit and cultural fit. The former is extremely important, the latter is practically even more important.

是的。我們每週都會持續關註一些公司。我有一個併購會議。有很多公司前來。我們非常小心，尤其是在這種時候，不會匆忙買東西。當然，我們也會小心確保該公司在策略契合度和文化契合度方面保持一致。前者極為重要，後者其實更為重要。

So the areas that we usually look for are more in the energy management software, sometimes in home automation, for example, small commercial solar, any innovation in batteries. We look for these. Usually, we like smaller companies, bolt-on acquisitions. That's what we have done until now. But I mean, we are looking at all kinds of companies. Please stay tuned. If we here going to move on something, it won't be without you knowing.

因此，我們通常尋找的領域更多是在能源管理軟體中，有時是在家庭自動化中，例如小型商用太陽能，以及電池方面的任何創新。我們尋找這些。通常，我們喜歡規模較小的公司，進行附加收購。這正是我們至今所做的。但我的意思是，我們正在關注各種各樣的公司。請繼續關注。如果我們在這裡要採取某些行動，我們一定會讓您知道。

And then just a real quick follow-up. I apologize if I missed this, but was there an update on the small commercial product, the timing or any color there?

然後只是一個非常快速的後續行動。如果我錯過了這個，我很抱歉，但是有沒有關於小型商業產品、時間或任何顏色的更新？

Yes. Yes, there was. We are right now doing beta installations as we speak. The product is working great. We expect to introduce this product in this quarter, current quarter, and we expect to make some reasonable revenue out of this product in Q4.

是的。是的。我們現在正在進行測試安裝。該產品效果很好。我們預計將在本季推出該產品，並預計在第四季度透過該產品獲得一些合理的收入。

Our next question will come from Steve Fleishman with Wolfe Research.

我們的下一個問題來自 Wolfe Research 的史蒂夫·弗萊什曼。

The $150 million of undership that you're talking about. Could you break that out between the U.S. and Europe?

您談到的1.5億美元合約底薪。您能將這種情況分為美國和歐洲嗎？

I would say approximately equal between the two.

我想說兩者大致相等。

Okay. And then in Europe, the impact of -- you mentioned 2 things, the weaker demand and then also the issues with the distributors destocking like, could you just give some flavor of what -- when you look at the weakness you started to see what's -- what -- are they about equal drivers? Is one kind of dominating the other?

好的。然後在歐洲，您提到了兩件事的影響，需求疲軟以及分銷商去庫存的問題，您能否簡單介紹一下，當您看到疲軟趨勢時，您開始看到什麼——它們之間的驅動因素是否相同？是一種支配另一種嗎？

Actually, to tell you the truth, every country is a little bit different. Clubbing them together under macroeconomics will not do justice. But there are some -- a few factors. Let me tell you. Overall thing that can be generalized. It's basically if you rewind to last year, all distributors, installers, consumers were a little -- were a lot more aggressive due to the Ukraine crisis. The Ukraine crisis, the shortage of natural gas caused many countries to be very aggressive to pull in their plans for renewables. And we saw a huge spike in virtually every country in Europe. Solar plus storage, everybody started stocking up a lot, and we also profited from that. Our revenue also peaked. But then that enthusiasm is a little bit tempered right now. And because of that, what's happening is the distributor suddenly realizing that they got more on their hands.

事實上，說實話，每個國家都有點不同。在宏觀經濟學下將它們放在一起並不公平。但也存在一些因素。讓我告訴你。整體而言，可以概括的事物。基本上，如果回顧去年，所有經銷商、安裝商、消費者都因為烏克蘭危機而變得更加激進。烏克蘭危機、天然氣短缺導致許多國家積極撤回再生能源計畫。我們發現幾乎歐洲每個國家都出現了大幅成長。太陽能加上儲能，每個人都開始大量儲存，我們也從中獲利。我們的收入也達到了頂峰。但現在這種熱情減弱。正因為如此，分銷商突然意識到他們手上有更多的庫存。

And also earlier, maybe 1.5 years back, the product availability wasn't that high because of that increase in demand. But now all of the suppliers have geared up, especially panels. Product availability of panels is very high. So a lot of over inventory, particularly on the panels has happened. That is putting a pressure on the distributors because they've purchased inventory at high prices before and now the prices have collapsed on panels. So there is some financial weakness there. But again, they're -- so therefore, they are conservative now and they want to hold as less inventory as possible. So that's kind of a macroeconomic.

而且早些時候，大概 1.5 年前，由於需求增加，產品供應量還沒有那麼高。但現在所有供應商都已做好準備，特別是面板供應商。面板產品可用性非常高。因此出現了大量庫存過剩的情況，尤其是面板庫存。這給分銷商帶來了壓力，因為他們之前以高價購買庫存，而現在太陽能電池板價格卻暴跌。因此那裡存在一些財務弱點。但是，因此，他們現在很保守，希望盡可能少持有庫存。這是一種宏觀經濟學。

Now let's come to Netherlands, our biggest market. Netherlands has got very interesting dynamic that when I went there 2 weeks ago because I went there when I heard that our demand was dropping, I got concerned. I went there and when I looked at it, Netherlands situation is actually not so bad. If you see, their payback is about 6 years. But they had a scare recently, a couple of maybe 2 or 3 months ago where an energy company called Vandebron basically said that to the consumer saying, we are going to charge you a penalty to export solar back into the grid. And Vandebron is a very small fraction. There are about 35 energy companies, I think, in Netherlands, it's a deregulated market, Vandebron is one of them. They serve about 3% of customers. They basically said that, "Oh, we're going to charge you an export penalty."

現在讓我們來談談我們最大的市場荷蘭。荷蘭的動態非常有趣，當我兩週前去那裡時，我聽說我們的需求正在下降，我感到很擔心。我去了那裡，看了一下，荷蘭的情況其實還不算太糟。如果你看一下，他們的回報期大約是 6 年。但最近他們受到了驚嚇，大概是兩三個月前，一家名為 Vandebron 的能源公司對消費者說，我們將向你收取罰款，以將太陽能輸送回電網。而 Vandebron 只是其中很小的一部分。我認為，荷蘭大約有 35 家能源公司，這是一個放鬆管制的市場，Vandebron 就是其中之一。他們為大約 3% 的客戶提供服務。他們基本上是說，“哦，我們要向你收取出口罰款。”

All they were trying to do is to put some pressure on the government saying, you need to help us with net metering because the simple fact of the matter is Netherlands has got wind, it's got solar, there is 2.2 million homes with solar out of 7 million homes. These -- if they start to export solar energy in a random manner, the energy companies are finding they cannot handle that easily. So they are putting pressure on the government to say, okay, net metering needs to evolve into something where the customers have self-consumption, which is solar plus storage. And so it's actually extremely good for us there.

他們所做的只是向政府施加壓力，說你們需要幫助我們進行淨計量，因為事實很簡單，荷蘭有風能，有太陽能，在 700 萬戶家庭中，有 220 萬戶使用太陽能。如果他們開始以隨機的方式輸出太陽能，能源公司會發現他們無法輕鬆應付。因此，他們向政府施加壓力，要求其說，好的，淨計量需要發展成為客戶自發消費的模式，也就是太陽能加上儲能。所以這對我們而言其實極為有利。

But the way they are doing it is, of course, a little bit disruptive. So there is -- the government is going to respond once it is in place. Now there is an election happening, net metering clarity is going to come probably after that. And -- but the way it's going to evolve is this market, and the net metering will still last until 2025. So we have covered for the next 2 years with good payback. And then the payback will be maintained after that with the combination of solar plus storage plus dynamic tariffs, which is getting popular there.

但他們的做法當然有點破壞性。所以，一旦措施到位，政府就會做出回應。現在正在舉行選舉，淨計量的明確性可能會在那之後顯現。而且——但這個市場的發展方式是這樣的，淨計量將持續到 2025 年。然後，透過太陽能+儲能+動態關稅的組合，將能夠維持回報，這種方法在那裡越來越受歡迎。

So that's the big picture in Netherlands. Many of the European countries are evolving in a similar way. Many of them have gotten dynamic tariffs. Germany is a little bit ahead. They don't have dynamic tariffs, but they introduced feed-in tariffs early, which very similar to net metering, export is not paid as much as import. In fact, it's only a fraction. That is why Germany, you find 80% attach rate on batteries. So long answer to your question, but that's the color on Europe.

這就是荷蘭的整體情況。許多歐洲國家也正在以類似的方式發展。其中許多已獲得動態關稅。德國略微領先。他們沒有動態關稅，但他們很早就引入了上網電價，這與淨計量非常相似，出口支付的金額不如進口支付的金額多。事實上，這只是一小部分。這就是為什麼在德國你會發現電池的附註率高達 80%。對你的問題的回答很長，但這就是歐洲的色彩。

I guess just to wrap the topic up overall, just let's say, we continue to move away from the kind of Ukraine energy crisis conditions but we do have these markets each put in these changes. Just does your kind of expectation of Europe kind of improving? Can it be driven just by these market-by-market changes? Or do you need to see some kind of move up in energy prices again?

我想，總的來說，我們將繼續擺脫烏克蘭能源危機的狀況，但我們的市場確實發生了這些變化。您對歐洲的期望是否有所改善？它可以僅由這些市場變化來推動嗎？或者您需要再次看到能源價格的上漲？

Well, I didn't talk about energy prices. Energy prices are also increasing. In places like France, the energy prices are also going up. So I mean, energy prices are going to help us. The utility rates are increasing. And so that is definitely going to be a tailwind. But make no mistake, despite all of this, in a place like Netherlands, 2 gigawatts of solar in a place like France, the payback is extremely good still, 5 to 6 years, where can you get that? Even just for solar, it's going to evolve into solar plus storage with a payback of maybe 7 to 8 years, but still very good for a 25-year product. So there is a small dislocation right now due to inventory issues due to these, but that's why we expect the ramp-up normalized -- I wouldn't say normalization, revenue recovery, a quick revenue recovery at least to some level in Europe.

嗯，我沒有談能源價格。能源價格也在上漲。在法國等地，能源價格也在上漲。所以我的意思是，能源價格將會幫助我們。公用事業的費率正在上漲。所以這肯定會成為一種順風。但請不要誤會，儘管如此，在荷蘭這樣的地方，在法國這樣的地方，2 千兆瓦的太陽能，回報仍然非常好，5 到 6 年，你在哪裡可以得到這個回報？即使只是對於太陽能來說，它也將發展成為太陽能加儲能，回報期可能為 7 到 8 年，但對於 25 年的產品來說仍然非常好。因此，由於這些庫存問題，目前出現了輕微的混亂，但這就是我們預計成長將正常化的原因——我不會說正常化，而是收入恢復，至少在歐洲某種程度上的快速收入恢復。

Our next question will come from Jeff Osborne with Cowen.

我們的下一個問題來自 Cowen 的 Jeff Osborne。

Badri, I was just curious on your expectation for a 2Q recovery. What is your working assumption on normalized inventory in the channel? I think in the past you talked about 8 to 10 weeks and assuming that is still the case, I guess, is there an argument that now that manufacturing is localized and continent by both yourself as well as competitors that -- why wouldn't that number be 5 or 6 weeks and maybe pressure would continue into Q2.

巴德里，我只是好奇您對第二季復甦的預期。您對通路中標準化庫存的工作假設是什麼？我認為過去您談到的是 8 到 10 週，假設情況仍然如此，我想，是否有這樣的論點：現在製造已經由您自己和競爭對手本地化和大陸化——為什麼這個數字不會是 5 或 6 週，也許壓力會持續到第二季​​度。

Yes. I mean, what you're saying is possible, but we don't think so. So I'll give you a quick primer on the weeks on hand. So you follow it. And I think generally, I'd like to say that everybody follows it. For example, if you have, let's say, you start off with 100 units at the beginning of a quarter in the channel, and let us say you drain inventory at 10 weeks -- I mean 10 units a week. And you also ship into the channel at 10 units a week, okay? So you ship into the channel at 10 units a week. You drain from the channel at 10 units a week. Therefore, at the end of the quarter, you find yourself at the same 100 because 100 plus 130, which is 13 weeks, minus 130, you have 100 units at the end of the quarter. You ask yourself what is the weeks on hand. You say that is 100 divided by 10. That's 10 weeks. So remember that number, 10 weeks.

是的。我的意思是，你所說的話是可能的，但我們不這麼認為。因此，我將為您簡要介紹一下當前幾週的情況。所以你就跟著它吧。我認為一般來說，我想說每個人都會遵循它。舉例來說，假設你在一個季度初在通路中開始使用 100 個單位，並假設你在 10 週時消耗庫存——我的意思是每週 10 個單位。而且你們每週還會以 10 台的速度向通路出貨，好嗎？因此您每週向通路運送 10 個單位。您每週從渠道排出 10 個單位的水。因此，在季度末，您會發現自己的數量還是 100，因為 100 加上 130（即 13 週），再減去 130，那麼季度末就有 100 個單位。您問自己目前有多少週的時間。你說這是 100 除以 10。所以記住這個數字，10週。

Now I say, oh, my demand is suddenly dropped by, let us say, 40%. That means I have 4 units a week that is accumulating. So that means -- and assume I ship the same number of units into the channel because I'm slow in recognizing that the situation has changed. So let us say I still ship the same 130 as before. But now my drain is only 78 instead of 130. So I therefore end up with 4 units excess per week, which is 52 units more than the last case. So now I have at the end of the quarter, 152 -- 152, but my end customer demand is only 6 units a week. So I tell you that my weeks on hand now is 152 over 6, which is 25 weeks. So I suddenly go, my weeks on hand increases by 150% due to a 40% drop in demand. If I am -- I continue to be oblivious of -- continue to be oblivious and ship the same material into the channel. So it can blow up disproportionately right? And of course, the further the demand drops, the further your weeks on hand will go up and the converse is true.

現在我說，哦，我的需求突然下降了，比如說， 40%。這意味著我每週有 4 個單位在累積。所以這意味著——假設我向通路運送相同數量的單位，因為我很難意識到情況已經改變了。因此，我們可以說我仍然像以前一樣運送相同的 130 件。但現在我的消耗只有 78 單位，而不是 130 單位。所以現在我本季末有152-152個單位，但我的最終客戶需求每週只有6個單位。所以我告訴你，我現在手邊有 6 週的空閒時間，總共是 152 週，也就是 25 週。所以我突然走了，由於需求下降了 40%，我手頭上的周數增加了 150%。如果我 — — 我會繼續無視 — — 繼續無視並將相同的材料發送至渠道。所以它可能會不成比例地爆炸，對嗎？當然，需求越下降，您可用的周數就會越多，反之亦然。

So if the demand improves a little bit, the weeks on hand is going to come down fast. So we think that the distributors -- I mean, will look at logical things here because even a 10- to 12-week inventory will be the similar dollar number that they have held in the past. And in fact, the lesser dollar number that they've held in the past. So we think logic will prevail and -- of course, end market demand could change all of that pretty quickly. So weeks on hand is not something that you -- that is obvious. It can really change drastically by small changes in demand, which I gave you the example there.

因此，如果需求略有改善，庫存週數就會快速減少。因此我們認為，經銷商 — — 我的意思是，會從邏輯上考慮問題，因為即使是 10 到 12 週的庫存，其美元金額也和他們過去持有的一樣。事實上，他們過去持有的美元數量較少。因此我們認為邏輯將佔上風，當然，終端市場需求可能很快就會改變這一切。因此，手頭上的幾週時間並不是你能支配的——這是顯而易見的。它確實會因為需求的微小變化而發生巨大變化，正如我在那裡給出的例子。

I appreciate that. My follow-up -- and correct me if I'm wrong, but I think you're allowed to, under the IRA export U.S. manufactured goods, to international jurisdictions. Is that something you're already doing or do you intend to do in 2024?

我很感激。我的後續問題——如果我錯了請糾正我，但我認為根據 IRA，你可以將美國製造的商品出口到國際司法管轄區。這是您正在做的事情嗎？

Not doing today, but of course, will consider.

今天不做，但當然會考慮。

Our next question will come from Julien Dumoulin-Smith with Bank of America.

我們的下一個問題來自美國銀行的 Julien Dumoulin-Smith。

I just wanted to pivot to a slightly different direction here, right? So you have a few of these exclusive deals across a number of different customers, but some larger ones, if you will. I'm curious, how do you think about how "locked in" those are going into the next year? And how are you think about working together realistically as partners, optimizing your value proposition while dealing and addressing with their respective needs, which are clearly and likely dynamic, especially given the backdrop in California. If you can speak to that, those dynamics? I know I'm not trying to get into the contract specifics here, but really working with them, if you will, and how you think about how locked in that portion of volumes are.

我只是想在這裡轉向稍微不同的方向，對嗎？因此，您可以與許多不同的客戶達成一些獨家交易，但如果您願意的話，您也可以達成一些規模更大的交易。我很好奇，您如何看待這些在明年會如何「鎖定」？您如何看待作為合作夥伴切實地開展合作，在處理和滿足各自需求的同時優化您的價值主張？如果您可以談論這一點，那些動態呢？我知道我不是想在這裡深入討論合約細節，而是真正地與他們合作，如果你願意的話，以及你如何看待這部分交易量的鎖定情況。

Yes. I mean, I presume you're talking about 1 large customer here that's the only one we have, which is official. The -- we love our partners, right? We work very closely with them. We value their relationship a lot. And we are there -- I mean, we are at their service all the time, whether it's quality, whether it's customer experience, we value their relationship a lot. So yes, of course, we will be looking to renew all of those.

是的。我的意思是，我假設你談論的是我們的唯一的一個大客戶，這是官方的。我們愛我們的伴侶，對吧？我們與他們密切合作。我們非常重視他們之間的關係。我們一直在那裡——我的意思是，我們一直為他們服務，無論是質量，還是客戶體驗，我們都非常重視他們的關係。所以是的，當然，我們將尋求更新所有這些。

Right. Yes. Fair enough. It's difficult to (inaudible) too much. And then just coming back to all these different contract manufacturing relationships, I know they might not be identical here, but how do you think about underutilization costs here? I mean what are the commitments like how flexible are the terms as you look at both flexing down and up the volumes through the course of the year here under these new arrangements?

正確的。是的。很公平。很難（聽不清楚）太多。然後回到所有這些不同的合約製造關係，我知道它們可能並不完全相同，但您如何看待這裡的未充分利用成本？我的意思是，在這些新安排下，當您考慮全年增加或減少交易量時，這些承諾的條款有多靈活？

Right. I did talk about it answering a prior question, and I will say the same thing here. We have great contract manufacturing partners. Flex has been great for us. They particularly helped us when we were in trouble in 2017. We are grateful there. Our relationship has been very healthy. Even during these times. And we are working together. Sometimes, we look at a problem and say, is this a short-term problem or a long-term problem? If it is going to cause them pain, we are willing to restructure. And all of those accounting are in our P&L. We report it as part of our non-GAAP and GAAP gross margin. So you should read the P&L and know that everything is there.

正確的。我在回答之前的問題時確實討論過這個問題，在這裡我也會說同樣的話。我們擁有優秀的合約製造合作夥伴。 Flex 對我們來說非常有用。特別是在2017年我們遇到困難的時候，他們給了我們很大的幫助，我們對此心懷感激。我們的關係一直都非常健康。即使在這些時候。我們正在共同努力。有時，我們會看著一個問題說，這是短期問題還是長期問題？如果這會帶給他們痛苦，我們願意進行重組。所有這些會計都在我們的損益表中。我們將其作為非 GAAP 和 GAAP 毛利率的一部分報告。因此，您應該閱讀損益表並了解所有內容。

And we view this particular situation is temporary. But we are very cognizant of the fact that underloading is a pain for our contract manufacturing. So -- and we think the right approach is to make sure both of us are profitable and share the pain. And we will be doing that.

我們認為這種特殊情況是暫時的。但我們非常清楚，負荷不足對我們的合約製造來說是一個痛苦。所以——我們認為正確的方法是確保我們雙方都能獲利並共擔痛苦。我們將會這麼做。

And our next question will come from Andrew Percoco with Morgan Stanley.

我們的下一個問題來自摩根士丹利的 Andrew Percoco。

So I just wanted to come back to a prior question. So it's clear that the demand backdrop is going to be a tough demand backdrop potentially for the next few quarters. Can you maybe just discuss the health of the average installer that is a recurring user of your equipment and their ability to manage through this period and transition to the TPO model? I think there's been some challenges around working capital and tax equity. So just curious what you're seeing and what you're hearing from some of those maybe repeat buyers on the smaller scale side of the installer community?

所以我只是想回到之前的問題。因此很明顯，未來幾季的需求背景可能會很嚴峻。您能否討論一下經常使用您設備的普通安裝人員的健康狀況，以及他們度過這段時期並過渡到 TPO 模型的能力？我認為在營運資金和稅收公平方面存在一些挑戰。所以我很好奇您從安裝商社群中規模較小的重複購買者那裡看到了什麼和聽到了什麼？

Yes. I mean we only hear color from other industry news, but we do see some transition to the leasing model. We do see that clearly. For us, how does it affect us is we have some great partners. We have Sunnova, great partner. John Berger is a close friend of mine. SunPower, Sunrun and other leasing partners. We do business with all of them. They're all great partners. So for us, it is -- if loan moves to lease our business, I would say there could be some product mix issues, but business is nominally not affected.

是的。我的意思是我們只聽到其他行業新聞的一些消息，但我們確實看到了向租賃模式的一些轉變。我們確實清楚地看到了這一點。對我們來說，這對我們有什麼影響呢？我們有 Sunnova，很棒的合作夥伴。約翰·伯格是我的好朋友。 SunPower、Sunrun 和其他租賃合作夥伴。我們和他們所有人都有生意來往。他們都是很好的合作夥伴。因此對我們來說，如果貸款轉向租賃我們的業務，我想可能會出現一些產品組合問題，但業務名義上不會受到影響。

We have heard anecdotes from a few industry sources that installers in California that are many long-tail installers who aren't in business any longer, but we don't have any direct data there. So I can only tell you what I know. The -- of course, I mean, it is a stressful time for them, and we are trying to help them with whatever we can, whether it leads or whether we can provide them some of the services like our Solargraf, et cetera, whether we can help them with NEM 3.0, their business. We are doing that. And that's the color that we have in general.

我們從一些業內消息人士處聽說，加州的許多長尾安裝商已經不再營業，但我們沒有這方面的直接數據。所以我只能告訴你我所知道的。當然，我的意思是，這對他們來說是一個壓力很大的時期，我們正在盡我們所能幫助他們，無論是引導還是我們是否可以為他們提供一些服務，例如我們的 Solargraf 等等，無論我們是否可以幫助他們開展 NEM 3.0 業務。我們正在這麼做。這就是我們通常所見的顏色。

We do business -- majority of the business we do is through distribution. And the distribution, one of the ways we would see it is in our payment, right? If we were to do direct business with all the installers, which we don't. We do business with distribution partners. So therefore, we have one level a little bit away from direct relationship with the long tail installers.

我們做生意－大部分的生意都是透過分銷來做。我們看到的分配方式之一就是付款，對嗎？如果我們要與所有安裝商直接做生意，我們就不會這麼做。我們與分銷夥伴做生意。因此，我們與長尾安裝者的直接關係還有一點距離。

Yes, that makes sense. And the other questions -- my other questions have been answered.

是的，這很有道理。至於其他問題——我的其他問題已經得到解答。

Could you repeat the question -- okay.

你能重複一下這個問題嗎——好的。

Our next question will come from Tristan Richardson with Scotiabank.

我們的下一個問題來自豐業銀行的特里斯坦·理查森。

I appreciate all the commentary on '24 and really just thinking about the commentary you made around stabilization next year. Should we think that could there be a swing factor with some of the new markets you've entered, whether that's U.K., Greece, Denmark, even India, could that be a meaningful factor that could affect sort of the timing of that stabilization or present a growth wedge above kind of that 2Q time frame you're talking about?

我欣賞對‘24’的所有評論，並且真正思考的是您對明年穩定的評論。我們是否應該認為，您所進入的一些新市場，無論是英國、希臘、丹麥還是印度，都存在一些波動因素，這些因素是否會對穩定的時間安排產生影響，或者在您談論的第二季度時間範圍內帶來成長楔入？

Absolutely. We have a lot of vectors of growth and that's a great place for us to start. But we are -- in the color I gave you, we didn't assume all of that. But we have absolutely so many countries that we are -- we were not present even a couple of quarters ago like we have introduced in batteries and microinverters, actually, batteries, for example, in Austria, in Spain, U.K., as you correctly pointed out, Sweden, Denmark, Greece. We have plans to introduce to about 15 countries in the fourth quarter. Microinverters alone, they are all new countries. So that's one vector.

絕對地。我們有很多成長載體，這對我們而言是一個很好的起點。但是我們——就我給你的顏色而言，我們並沒有假設所有這些。但是，我們在許多國家都有業務——幾個季度前我們還沒有在市場上推出電池和微型逆變器，實際上，電池業務涉及奧地利、西班牙、英國，正如您正確指出的那樣，還有瑞典、丹麥、希臘。我們計劃在第四季向大約 15 個國家推出。單就微型逆變器而言，它們都是新興的國家。這是一個向量。

New geographies, very important for us. But on the flip side, there, it does take some time to establish infrastructure there. You do need to build up your installer base. You do need to train them very well because our bread and butter is our installers. Therefore, we need to train them excellently. And we need to win them one by one. And that is a process in itself. It can be as early as 3 to 6 months, but it can be over a longer time frame as well.

新的地理位置對我們來說非常重要。但另一方面，在那裡建立基礎設施確實需要一些時間。您確實需要建立自己的安裝程式基礎。你確實需要對他們進行很好的培訓，因為安裝人員是我們賴以生存的基礎。因此，我們需要對他們進行出色的培訓。我們需要逐一贏得勝利。這本身就是一個過程。最早可以是 3 至 6 個月，但也可以是更長的時間。

We got several new markets in Asia that are also interesting for us, like, for example, Taiwan, Korea. Indonesia, we are there today, but we are rapidly moving into IQ8. There are a few other smaller countries in Eastern Europe that we are going after. Small commercial. That's a very big one. The small commercial in the U.S. is about 1 gigawatt. We are going to add that product this quarter.

我們在亞洲有幾個新的市場對我們來說也很感興趣，例如台灣、韓國。印度尼西亞，我們今天就在那裡，但我們正在迅速進入 IQ8。我們也計劃進軍東歐其他幾個較小的國家。小型商業。這是一個非常大的問題。美國小型商用大約是1千兆瓦。我們將於本季增加該產品。

The small commercial opportunity in Europe is much bigger. It's about 10-plus gigawatts and we are figuring out that one systematically because we can service that market less than 100 kilowatts with the products we have. So there, of course, pricing is something that we are looking there on how to be competitive in that segment, but we do have a lot of levers there on small commercial. So that is one more.

歐洲的小型商業機會要大得多。大約有 10 多千兆瓦，我們正在系統地計算這個數字，因為我們可以用現有的產品為不到 100 千瓦的市場提供服務。因此，當然，定價是我們在該領域保持競爭力的方法，但是在小型商業領域我們確實有很多槓桿。又一個。

The other one is EV charging. EV charger. We just introduced our connected EV charger. That is a big deal. Now with everybody wanting to electrify, meaning their home, which is buying electric vehicles, electrified vehicles, for example. The -- our product will work with solar plus batteries and it will help the homeowner optimize his bill. He can do green charging now. He doesn't need to spend money charging the vehicle from the grid. All he needs to do is to add about one type of investment, of course, he's got to do that, 6 to 8 panels or 6 to 10 panels. He needs to add it, if he buys an EV. And that is a huge opportunity.

另一個是電動車充電。電動汽車充電器。我們剛剛推出了連網電動車充電器。那是一件大事。現在每個人都想讓自己的家變得電氣化，例如購買電動車、電氣化汽車。我們的產品將與太陽能電池搭配使用，幫助房主優化電費。他現在可以進行綠色充電了。他不需要花錢從電網為車輛充電。他需要做的就是增加一種投資，當然，他必須這樣做，6 到 8 塊面板或 6 到 10 塊面板。如果他購買電動車，他就需要添加它。這是一個巨大的機會。

We are now following up and introducing these EV chargers in Europe, which is what I talked about. So early next year, we will have IQ EV chargers in Europe.

我們現在正在跟進並在歐洲推出這些電動車充電器，這就是我所說的。因此，明年初我們將在歐洲推出 IQ EV 充電器。

Then the other -- the other one is home energy management software, right? We're now beginning with Germany. We now have the ability to also connect to third-party EV chargers and heat pumps. So now we can optimize the entire system, our solar, our storage, hopefully, our EV chargers soon, but in the meantime, third-party EV chargers, third-party EV -- I mean, third-party heat pumps and giving the homeowner one app, all in one app, optimizing his energy from his fingertips. So that's energy management software plus we have some hardware there, which we will eventually integrate into our gateway.

那麼另一個——另一個是家庭能源管理軟體，對嗎？我們現在從德國開始。我們現在還可以連接第三方電動車充電器和熱泵。所以現在我們可以優化整個系統，我們的太陽能、我們的存儲，希望很快能優化我們的電動汽車充電器，但與此同時，第三方電動汽車充電器、第三方電動汽車——我的意思是第三方熱泵，並為房主提供一個應用程序，所有功能都在一個應用程序中，讓他通過指尖優化能源。這就是能源管理軟體，另外我們還有一些硬件，我們最終會將它們整合到我們的網關中。

So we'll roll that out to all the countries, including the U.S. So we got a lot of vectors there, which is introduced solar plus batteries into many, many new countries worldwide. Introduced products for the small commercial markets worldwide, introduced IQ smart EV chargers, both in the U.S., which we have done and worldwide. Energy management software plus whatever hardware is required to manage heat pumps and third-party EVs worldwide. So we have a lot of vectors. Of course, I did not include that in the color, which I gave, which is conservative from our perspective.

所以我們會將其推廣到所有國家，包括美國。向全球小型商業市場推出產品，在美國和全球推出 IQ 智慧電動車充電器。能源管理軟體以及管理全球熱泵和第三方電動車所需的任何硬體。因此我們有很多向量。當然，我沒有把它包括在我給出的顏色中，從我們的角度來看這是保守的。

Our next question will come from Moses Sutton with BNP Paribas.

我們的下一個問題來自法國巴黎銀行的摩西·薩頓。

I just wanted to tag on to Andrew's comment about the (inaudible) installer. Are you seeing stress outside of the California market? Are you seeing any sellers selling distributors asking for price concessions, maybe distributors asking for concessions on terms and receivables, just curious if you could give a little more color on the health of the Tier 4.

我只是想補充安德魯關於（聽不清楚）安裝程序的評論。您是否發現加州以外的市場有壓力？您是否看到任何賣家向分銷商要求價格優惠，也許分銷商要求在條款和應收帳款方面做出優惠，只是好奇您是否可以對 Tier 4 的健康狀況提供更多了解。

Yes, the -- I'm just clarifying the question. You want to know the health of the business outside California. Is that correct?

是的，我只是在澄清這個問題。您想了解加州以外企業的健康狀況。那正確嗎？

Specifically for the (inaudible) for the small stores.

特別是針對（聽不清楚）小商店。

Specifically for the long tail, I mean -- yes, the color that I can give you is the non-California business as a whole is stabilizing right now. That's what we see. We see Q3 was 4% down from Q2. And the first 3 weeks of Q4, which is the last 3 weeks of this quarter, also not too bad. In fact, it's a little bit up. So we think the non-California business is pretty decent. But of course, it is still down from the high levels that we had by nearly 35%, meaning from Q4 of last year, Q4 '22, it's still down by nearly 30% to 35%. And your question is how is the health of the long tail -- it's a similar answer for us. We work with our business, if you see 80-plus percent probably, maybe 75% is the long tail there. So we see all of them down, whether there are installers going out of business. We don't get that information, but I think we don't have that data. We do see the same trend, which is loans moving to leases. All our partners are pretty great. Sunnova, SunPower, Sunrun, for us, it is moving from one hand to another hand like what I said. That's the color I can give you.

具體來說，對於長尾而言，我的意思是——是的，我可以給你的顏色是整個非加州業務現在正在穩定下來。這就是我們所看到的。我們發現第三季比第二季下降了 4%。第四季的前三週，也就是本季的最後三週，表現也還不錯。事實上，是稍微有點上漲。因此我們認為加州以外的業務相當不錯。但當然，它仍比我們曾經的高水準下降了近 35%，這意味著與去年第四季、即 2022 年第四季相比，它仍下降了近 30% 至 35%。您的問題是長尾的健康狀況如何—我們的答案是類似的。我們致力於我們的業務，如果你看到 80% 以上，也許 75% 是長尾。因此，我們看到所有的安裝商都倒閉了，是否有安裝商停止營業。我們沒有得到這些信息，但我認為我們沒有這些數據。我們確實看到了相同的趨勢，即貸款轉向租賃。我們所有的合作夥伴都非常棒。 Sunnova、SunPower、Sunrun，對我們來說，就像我說的，它們正在從一隻手轉移到另一隻手。這就是我能給你的顏色。

That's very helpful. And then just any sense on Texas and Florida, in particular. I know outside California is averaging a little better, but maybe specifically those markets?

這非常有幫助。然後特別談談對德克薩斯州和佛羅裡達州的看法。我知道加州以外的平均水平要好一些，但也許特別是那些市場？

Yes. I mean they were disproportionately down because of -- because the utility rates aren't as high compared to the increase in the interest rates. So they were worst affected, but we see many of them in Texas and California -- I mean, Texas and Florida particularly moving to the lease model. We do see that like what you said. And we do see that business starting to recover.

是的。我的意思是，它們之所以不成比例地下降，是因為——因為與利率的增加相比，公用事業費率並沒有那麼高。因此他們受到的影響最嚴重，但我們看到德克薩斯州和加利福尼亞州的許多公司——我的意思是，德克薩斯州和佛羅裡達州尤其正在轉向租賃模式。我們確實看到了您所說的情況。我們確實看到業務開始復甦。

And our next question will come from Joseph Osha with Guggenheim Partners.

我們的下一個問題來自古根漢合夥人公司的約瑟夫‧奧沙。

Two questions. First, following on from the previous one, look, we all see Sunrun, Sunnova, SunPower accessing ADS or whatever markets for third-party ownership. I'm curious, do you know if your long tail has found any other solutions for third-party ownership? Or when you talk about that avenue, is it basically those 3 companies that you're seeing? And I do have one other question.

兩個問題。首先，承接上一個案例，我們都看到 Sunrun、Sunnova、SunPower 正在進入 ADS 或任何第三方所有權市場。我很好奇，你知道你的長尾是否找到了其他第三方所有權的解決方案嗎？或者當您談到那條途徑時，您看到的基本上是那三家公司嗎？我還有一個問題。

Majority is those companies, and there are a few smaller leasing companies that are coming up, too. But 90% is those 3 companies.

大多數是這類公司，也有少數小型租賃公司正在崛起。但90%都是那3家公司。

Okay. Great. And then this is really more of a philosophical question. I know all of us on Wall Street just love to hear you talk about defending your gross margin. But given how the market is evolving, have you done some analysis and are you sure that your business couldn't perhaps generate higher bottom line earnings if you simply grew it more quickly and allow, say, a 35% gross margin? I'm just curious as to your philosophy as to why the gross margin has to stay where it is?

好的。偉大的。那麼這其實更像是一個哲學問題。我知道華爾街的所有人都喜歡聽你談論如何捍衛你的毛利率。但考慮到市場的發展情況，您是否做過一些分析，並且您是否確定如果您的業務只是更快地增長並允許 35% 的毛利率，您的業務就可能無法產生更高的底線收益？我只是好奇，您的理念是為什麼毛利率必須維持不變？

It is the eternal question. Can I grow faster if I drop prices, right? I mean for us, it is pricing based on value. The moment we've stopped generating value, it is over. So that's why I never look at those in conjunction pricing. I don't base it on cost. The moment you base it on cost, it's a problem. Then you forget about the value drivers. And therefore, the -- what that means is if we need to add value in both microinverters and battery and software. And that's hard to do, but that's what we do thoroughly.

這是一個永恆的問題。如果我降低價格，我能發展得更快嗎？我的意思是，對我們來說，定價是基於價值的。一旦我們停止創造價值，一切就都結束了。這就是為什麼我從不考慮這些結合定價的原因。我並不是根據成本來做決定。一旦你以成本為依據，這就會成為一個問題。那你就忘了價值驅動因素。因此，這意味著我們需要在微型逆變器、電池和軟體中增加價值。這很難做到，但我們確實徹底做到了。

Innovation is -- someone said it right in Silicon Valley, innovate or die. We are that company. That's our philosophy. So we believe high quality is high volume and high price or the right prices or value.

創新就是──矽谷有人說得對，不創新，則死亡。我們就是那家公司。這就是我們的理念。因此，我們認為高品質就是高產量、高價格或合理的價格或價值。

And our next question will come from Vikram Bagri with Citigroup.

我們的下一個問題來自花旗集團的維克拉姆·巴格里。

Very helpful color on demand and supply dynamic in countries in Europe. Badri, you mentioned you expect to recover a bit in your calculation of $300 million of inventory reductions over the next 2 quarters? Is that rebound? Is that a function of Enphase entering a number of new countries in EU this year, as you mentioned, and gaining market share in existing markets, such as Germany, or the outlook for inventory reductions assumes that the base demand rebounds in first quarter. And on top of that, you gained market share in new as well as sort of like existing markets. And then if you can talk about the U.S. market also, it seems like you're looking to defend market share. You haven't seen any declines in market share so far. But if there were some, you will look to defend that.

對歐洲各國的供需動態非常有幫助。巴德里，您提到，在計算未來兩季的 3 億美元庫存減少額時，您預計會回升？這是反彈嗎？這是因為，正如您所說，Enphase 今年進入了歐盟的一些新國家，並在德國等現有市場獲得了市場份額，還是因為庫存減少的前景假設基礎需求在第一季反彈。除此之外，您還在新市場和現有市場中獲得了市場份額。如果您也可以談談美國市場，看起來您正在尋求捍衛市場份額。到目前為止，您還沒有看到市場份額有任何下降。但如果有的話，你就會試圖捍衛它。

Yes. I mean we already told you that we aren't assuming the demand picture changing from the current levels in our assumptions. And basically, I'm not here to give guidance for Q1, but I'm just giving you a general color for Q1. So all our assumptions are based on demand picture not changing in the next -- demand picture not changing from what it is today. So that's what we said in our assumptions.

是的。我的意思是我們已經告訴過你，我們不會假設需求狀況會從我們的假設中的當前水準發生變化。基本上，我在這裡不是要為第一季提供指導，而只是為大家提供第一季的整體情況。因此，我們所有的假設都是基於需求狀況在未來不會改變——需求狀況與今天相比不會改變。這就是我們在假設中所說的內容。

Then your question is on U.S. U.S. for us is -- we work with a lot of customers. We -- this is the time where our partnerships like what I said, are a lot deeper. Every one of our executives is always on the road visiting customers. Every opportunity to gain market share, we are all over it. And like what I said, we have a number of tools. Yes, of course, it's defending against competition. All competition is very important for us. We take everybody seriously. We work on our problems. We fix our problems. Our customer service, you see many people simply stick to us for our quality and customer experience. Our Net Promoter Score is 78 in the U.S. We are opened 24/7, our call center. We have field service technicians who will show up in your home tomorrow if you have a problem today, right? So we have a -- if you put the total picture together, it's innovation, quality and customer experience.

那麼您的問題是關於美國的。正如我所說，這是我們的合作關係更加深入的時期。我們的每一位主管總是在路上拜訪客戶。我們會抓住每一個贏得市場佔有率的機會。正如我所說的，我們有很多工具。是的，當然是為了防範競爭。所有的比賽對我們來說都非常重要。我們認真對待每一個人。我們努力解決自己的問題。我們解決問題。我們的客戶服務，您會看到很多人只是因為我們的品質和客戶體驗而選擇我們。我們的淨推薦值在美國是 78。我們有現場服務技術人員，如果您今天遇到問題，他們明天就會出現在您家裡，對嗎？所以，如果把整個情況放在一起，那就是創新、品質和客戶體驗。

Now we have one more fact that we have. We can give people a made-in-America products. Now we do have that many of our installers love it because they -- for example, we just had -- in Flex, we -- in South Carolina, President Biden came and inaugurated that plant, and we have a lot of installers there, including not just installer partners, distribution partners. So it is very important for them. Made in America product right there in South Carolina, right there in Arlington, right there in Wisconsin. It is there. So we think that will help too.

現在我們又掌握了一個事實。我們可以向人們提供美國製造的產品。現在我們確實有很多安裝人員喜歡它，因為他們——例如，我們剛剛——在 Flex，我們——在南卡羅來納州，拜登總統來到這裡並為該工廠揭幕，我們在那裡有很多安裝人員，不僅包括安裝合作夥伴，還包括分銷合作夥伴。所以這對他們來說非常重要。產品產自美國，產地就在南卡羅來納州、阿靈頓、威斯康辛州。它就在那裡。因此我們認為這也會有幫助。

And we are going to -- in a similar vein, we're going to bring in our batteries as well in the U.S., and we will take advantage of the domestic content there. And so that will provide extra help to some of our leasing partners. So yes, we are always working on market share. We always take competition seriously, not just right now. This is how we do business.

同樣，我們也將把我們的電池進口到美國，並利用那裡的國內資源。這將為我們的一些租賃合作夥伴提供額外的幫助。是的，我們一直致力於擴大市場佔有率。我們始終認真對待競爭，不僅僅是現在。這就是我們做生意的方式。

And as a follow-up, I wanted to quickly follow up on the capital allocation question earlier in the call. I was wondering if your priorities have changed given where the stock price is today. I see you repurchased about $110 million in shares versus $122 million of free cash flow this quarter. Should we expect similar trend going forward, share buybacks closely following free cash flow generation in quarters?

作為後續問題，我想快速跟進通話早期提出的資本配置問題。我想知道，考慮到今天的股價，您的優先事項是否發生了變化。我發現你本季回購了價值約 1.1 億美元的股票，而自由現金流為 1.22 億美元。我們是否應該預期未來會出現類似的趨勢，即股票回購緊接著季度自由現金流的產生？

Yes. Well, I mean we have a lot of cash like what you pointed out, $1.8 billion. We have shown that we are willing to buy back stock in a disciplined fashion. We have bought back stock in the last couple of quarters. I think we have bought back $310 million in total, $110 million in Q3 and $200 million in the prior quarter. I think this is an opportunistic time for us where we can take advantage of the stock price. So we will be opportunistic about it.

是的。嗯，我的意思是我們有很多現金，就像你所指出的，18 億美元。我們已經表明我們願意以有紀律的方式回購股票。我們在過去幾個季度回購了股票。我認為我們總共回購了 3.1 億美元，第三季回購了 1.1 億美元，上一季回購了 2 億美元。我認為對我們來說這是一個利用股價的機會時機。因此，我們將抓住機會。

And our next question will come from Praneeth Satish with Wells Fargo.

我們的下一個問題來自富國銀行的 Praneeth Satish。

I guess I wanted to ask about Tesla's new Powerwall 3 offering and maybe what are kind of the puts and takes there comparing that against your IQ8 and 5P battery. And I guess, do you anticipate any market share changes when this product is launched next year?

我想問一下特斯拉的新款 Powerwall 3 產品，以及與 IQ8 和 5P 電池相比，它有哪些優缺點。您預計明年推出產品時市佔率會有什麼變化嗎？

This is Raghu. And Badri mentioned earlier on, look, competition is not new to us. And any company out there that's doing string inverters, we have been competing against those since the inception of the company, and we have a very, very strong value proposition against that technology, a technology that we've been fighting against since 2008. So if you think about it, if you break it down, we just produce more energy. We do maximum power point tracking on a per module basis, right, because we have -- we do power conversion right at the module itself. We are much more reliable. We don't have a single point of failure, that's a true value of the distributed architecture.

這是 Raghu。巴德里之前提到過，競爭對​​我們來說並不是什麼新鮮事。自從公司成立以來，我們就一直在與任何生產串式逆變器的公司競爭，並且我們對該技術有著非常非常強烈的價值主張，自 2008 年以來，我們就一直在與該技術抗爭。 所以，如果你仔細想想，如果你把它分解開來，我們只會生產更多的能量。我們對每個模組進行最大功率點跟踪，對的，因為我們——我們在模組本身進行功率轉換。我們更值得信賴。我們沒有單點故障，這是分散式架構的真正價值。

So even if one of our micros or the module or to -- were to fail or get impinged on energy, the rest of the system continues to operate. String inverters on the other hand, are a very significant single point of failure of that string inverter would fail, our entire system is dead.

因此，即使我們的一個微控制器或模組出現故障或受到能量影響，系統的其餘部分仍能繼續運作。另一方面，串式逆變器是一個非常嚴重的單點故障，如果該串式逆變器發生故障，我們的整個系統就會崩潰。

Again, if you look at also design, installation and maintenance, we don't have string designs anymore. Like those string designs are a thing of the past, those things went away in 2012. And with us, you don't have to do any stringing, no string design, no limitation, so you can put as much new modules as you like, installation is all plug-and-play.

再者，如果您再看一下設計、安裝和維護，我們不再有弦樂設計了。就像那些串接設計已經成為過去，那些東西在 2012 年就消失了。

And maintenance, we provide you with per module information, right? And with the traditional string inverters, you're completely blind to how your modules are performing. So I think that's going backwards. And finally, and arguably one of the most important elements of it is safety, right? You want to do -- you don't want any high-voltage DC anywhere in the system. And so with Enphase, we are all low voltage DC, we are traditional AC. And the combination of high-voltage DC and high-energy chemistry is probably not very optimal.

和維護一樣，我們為您提供每個模組的信息，對嗎？使用傳統的串式逆變器，您完全無法了解模組的運作情況。所以我認為這是倒退。最後，可以說其中最重要的因素之一就是安全，對嗎？您想要做的事情——您不希望系統中的任何地方出現任何高壓直流電。因此對於 Enphase 來說，我們都是低壓直流電，我們都是傳統交流電。而且高壓直流電和高能化學的結合可能不是很理想。

And on the reliability front, we mentioned, one is system-level reliability, which is not having a single point of failure. But look, our unit itself is extremely reliable. We offer a 25-year warranty compared to other types of technologies that offer 10-, 12-year warranties. And on the battery, if you break the battery down as well, modularity is extremely important. You don't need to have very large batteries and you have the -- where we are building block is 5kwh. So you can rightsize the system to exactly what the homeowner needs. But we mentioned the higher power of our third-generation battery our IQ battery 5P, the high C-rate of the battery is really is an economic benefit to the homeowner because you can export significant amounts of power during those times of the day or those times of the hour where you get compensated by the utility for exporting energy.

在可靠性方面，我們提到，一個是系統級可靠性，即沒有單點故障。但你看，我們的單位本身是非常可靠的。我們提供 25 年保修，而其他類型的技術僅提供 10 年、12 年保固。至於電池，如果你將電池拆開，模組化就極為重要。你不需要非常大的電池，而且我們有——我們正在建造的模組是 5kwh。因此，您可以根據房主的需求調整系統的規模。但我們提到了我們的第三代電池 IQ 電池 5P 具有更高的功率，電池的高 C 率確實為房主帶來了經濟效益，因為您可以在一天中的某些時間或一小時內輸出大量電力，而在這些時間內，您可以因輸出能源而獲得公用事業公司的補償。

And finally, on safety, we use lithium iron phosphate, LFP chemistry, right? LFP chemistry is arguably much safer than any other chemistry that's out there. Put all that together, look at it in the totality of the system, right, all the software that we provide, the design tools that we provide, those are the competitive moats against any other technology that is out there.

最後，從安全性角度來看，我們使用磷酸鐵鋰，LFP 化學，對嗎？ LFP 化學品可以說比其他化學品都安全得多。把所有這些放在一起，從整個系統的角度來看，對的，我們提供的所有軟體，我們提供的設計工具，這些都是相對於任何其他技術的競爭護城河。

Now couple that with our customer service, right? We are open 24/7. Our customer service department is open 24/7. We -- the installer can call us at any time. The homeowner can call us. They have beautiful app where they see their solar, their batteries. Now even there with the connected EV charger, they're seeing how the EV is doing. If you have a VPP program right from the app itself, we can sign up for the VPP program. We really bring a comprehensive solution that is completely differentiated, distributed architecture on inverters, the battery arguably one of the safest batteries, connected EV chargers and a complete system solution for the homeowner and of course, a great customer experience. So take any -- we have a very competitive solution. And like I said, competition is not new for us at all.

現在將其與我們的客戶服務結合起來，對嗎？我們每天24小時營業。我們的客戶服務部門每天 24 小時開放。我們－安裝人員可以隨時打電話給我們。房主可以打電話給我們。他們有一個漂亮的應用程序，可以查看他們的太陽能和電池。現在，即使有了連網的電動車充電器，他們也能觀察電動車的運作。如果您有應用程式本身的 VPP 程序，我們可以註冊該 VPP 程式。我們確實帶來了一個全面的解決方案，它是完全差異化的、逆變器上的分散式架構、可以說是最安全的電池之一、連接的電動車充電器和為房主提供的完整系統解決方案，當然還有出色的客戶體驗。因此，無論採取何種措施——我們都有非常有競爭力的解決方案。正如我所說，競爭對我們來說並不是什麼新鮮事。

That's very helpful. I guess, just quickly switching gears to California. I just wanted to -- you mentioned that you're educating installers about NEM 3.0, the payback is 6 years, maybe down to 5 years with some of these rate increases. You've got the Solargraf software where you're kind of automating a lot of the calculations for installers. But despite all this, and it all sounds good on paper. But despite all this, that the permits are just -- they're moving down week on week, right, in the wrong direction. So I'm just trying to understand if there's anything else you can do to simplify the process and help convert some of the leads to signed contracts? Or is it just -- is it rates? Or is it just waiting for time, waiting for just macro to improve a bit?

這非常有幫助。我想，只是快速地轉向加州。我只是想 - 您提到您正在對安裝人員進行有關 NEM 3.0 的培訓，回報期是 6 年，如果利率上調，可能降至 5 年。您擁有 Solargraf 軟體，它可以為安裝人員自動執行大量計算。但儘管如此，從紙上看，一切聽起來都很好。但儘管如此，許可證數量每週都在下降，是的，朝著錯誤的方向。所以我只是想知道您是否還能做些什麼來簡化流程並幫助將一些線索轉化為簽署的合約？或者只是——是利率嗎？還是只是在等待時間，等待宏觀層面有所改善？

It starts waiting, right? It's our -- we have to go out there. And we and the rest of our industry needs to get out there and continue educating our installer partners, helping our install partners educate the homeowner, that's what it's going to take. And I think all the tools are there, everything is ready. But most importantly, the economics are there, right? It's simply getting in front of the homeowner, getting and convincing them, showing them the numbers, showing them using a tool like Solargraf and showing them what a solar install of the house would look like, the size of the battery that they would require and then showing them the payback period that it's anywhere from 5 to 7 years and getting better as utility rates continue to improve.

它開始等待，對嗎？這是我們的——我們必須走出去。我們和我們行業的其他部分需要走出去，繼續教育我們的安裝合作夥伴，幫助我們的安裝合作夥伴教育房主，這就是我們需要做的。我認為所有的工具都已存在，一切都準備就緒。但最重要的是，經濟條件就在那裡，對吧？它只是出現在房主面前，獲得並說服他們，向他們展示數字，向他們展示使用像 Solargraf 這樣的工具，向他們展示房屋安裝太陽能的樣子，他們需要的電池尺寸，然後向他們展示投資回報期，從 5 到 7 年不等，並且隨著公用事業費率的不斷提高而變得更好。

So I think we are all doing the right things. We are getting out there and at least Enphase, we are getting out there and I'm sure our competition is also getting out there and educating both installers and customers and so we expect -- yes, we expect it's simply a matter of time. I think you'll see -- you'll see the California market turnaround as well.

所以我認為我們都在做正確的事。我們正在走出去，至少 Enphase 也在走出去，我相信我們的競爭對手也在走出去，教育安裝人員和客戶，所以我們預計——是的，我們預計這只是一個時間問題。我想你會看到——你也會看到加州市場的改善。

This concludes our question-and-answer session. I would now like to turn the conference back over to Badri Kothandaraman for any closing remarks.

我們的問答環節到此結束。現在，我想將會議交還給巴德里·科坦達拉曼，請他作最後發言。

Yes. Thank you for joining us today and for your continued support of Enphase. We look forward to speaking with you again next quarter.

是的。感謝您今天加入我們並繼續對 Enphase 的支持。我們期待下個季度再次與您交談。

The conference has now concluded. Thank you very much for attending today's presentation. You may now disconnect your lines.

會議現已結束。非常感謝您參加今天的演講。現在您可以斷開線路了。