For the full year 2023, our revenue saw a modest sequential decline of 1.7% Our 2023 to $2.29 billion, compared to $2.33 billion in 2022. We shipped 15.5 million microinverters in 2023, compared to 15.4 million microinverters in 2022. 1 Notably, our non-GAAP gross margin expanded to 45.3%, excluding the 1 Ination Reduction Act (IRA) net benet and surged to 47.1%, when factoring performance in the IRA net benet - achieved through the domestic manufacturing of our microinverters in the United States. In addition, we generated positive free cash ow for all quarters in 2023 and exited the year with approximately $1.70 billion in cash, cash equivalents, and marketable securities, an increase of over $80 million from 2022. Despite the working capital constraints faced by our customers, our team excelled in collaborating with them, resulting in a healthy cash balance and positive free cash ow. “We shipped 15.5 million In July 2023, our Board of Directors approved a share repurchase program microinverters in 2023, compared with authorization to purchase up to $1.0 billion worth of shares of our common to 15.4 million microinverters in stock. In 2023, we repurchased 3,284,368 shares of our common stock, 2022.” representing 2.4% of our outstanding shares, at an average price of $124.83 per share for a total of $410.0 million. Our approach to stock repurchases is methodical, prioritizing the needs of our business while maintaining adequate reserves for potential acquisitions and strategic investments. Only then do we engage in opportunistic share repurchases if we believe that our share price is less than a conservatively calculated intrinsic value. Our global regional revenue was mixed, with Europe growing and the United States declining Our revenue distribution between the United States and international markets in 2023 stood at 64% and 36%, respectively. During 2023, we managed through a correction in the U.S. solar market after three years of phenomenal growth – a period in which the residential solar market had doubled, and Enphase sales had tripled. In 2023, our revenue in the United States decreased 17% from 2022. As I mentioned in my introduction, high interest rates and the NEM 3.0 transition in California were the main drivers for the decrease. Starting in the second quarter of 2023, we faced elevated inventory in the channel as a result of the slowdown. In response, we took prudent actions in the United States to curtail shipments and decrease channel inventory through the rest of 2023. California transitioned to NEM 3.0 in the second quarter of 2023. While solar installations in California suered as a result in the second half of the year, the battery attach rate increased to greater than 80% for NEM 3.0 systems. 1 See Appendix for GAAP to non-GAAP reconciliation 6 ENPHASE CEO LETTER TO SHAREHOLDERS 2023 7