Income Statement
The income statement presents information on the financial results of a company business activities over a period of time. The income statement communicates how much revenue the company generated during a period and what cost it incurred in connection with generating that revenue.
Enphase Energy Inc., consolidated income statement
US$ in thousands
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).
- Revenue and Profitability Trends
- Over the five-year period, net revenues exhibited strong growth, increasing from approximately $624 million in 2019 to a peak of around $2.33 billion in 2022, followed by a slight decline to approximately $2.29 billion in 2023. Correspondingly, gross profit more than quadrupled from $221 million in 2019 to over $1.05 billion in 2023, signaling improved efficiency in managing cost of revenues, which, although increasing in absolute terms, grew at a relatively slower pace compared to revenues.
- Cost Management and Expense Analysis
- Costs of revenues consistently increased, rising from about $403 million in 2019 to over $1.23 billion in 2023, reflecting the higher sales volume and possibly inflationary or input cost pressures. Operating expenses, composed of research and development, sales and marketing, general and administrative expenses, and restructuring charges, showed significant growth as well. Research and development expenditures nearly sextupled from roughly $40 million to over $227 million, indicating increased investment in innovation or product development. Sales and marketing expenses expanded significantly, more than sixfold to approximately $232 million, highlighting an intensification in promotional or sales efforts. General and administrative costs grew approximately threefold, signaling scaling administrative functions. Restructuring and impairment charges, although less consistent, spiked notably in 2023 to around $15.7 million, potentially indicating operational adjustments.
- Operating Income and Margins
- Income from operations showed substantial growth, rising from $103 million in 2019 to about $446 million in 2023. The steep increase between 2021 and 2022, more than doubling from $216 million to $448 million, suggests enhanced operational leverage or improved cost controls. Despite increased operating expenses, the company maintained strong operational profitability, supported by robust revenue growth.
- Non-operating Items
- Interest income displayed notable volatility, increasing significantly to nearly $70 million in 2023 from below $1 million in 2021, possibly due to increased cash reserves or financial management strategies. Interest expense remained relatively stable after peaking in 2021, trending downward to around $8.8 million in 2023. Other income and expense items fluctuated, with major negative impacts in 2020 and 2021 but a return to positive contributions in 2022 and 2023, which may have influenced net income positively during the latter periods.
- Income Before Taxes and Net Income
- Income before income taxes increased steadily across the timeline, jumping from $90 million in 2019 to over $513 million by 2023, a nearly sixfold increase. This reflects strong core business growth and favorable non-operating impacts in recent years. Income tax provisions shifted from positive adjustments in early years to significant tax expenses in 2022 and 2023, reducing net income growth somewhat but not enough to offset gains. Net income rose from $161 million in 2019 to $439 million in 2023, with notable acceleration from 2021 onwards, particularly in 2022, where net income nearly tripled compared to the previous year.