SEDG SolarEdge Technologies Inc

SolarEdge Technologies, Inc. (Nasdaq: SEDG), a global leader in smart energy technology, today announced its financial results for the third quarter ended September 30, 2023.

Third Quarter 2023 Highlights

• Revenues of $725.3 million
• Revenues from solar segment of $676.4 million
• GAAP gross margin of 19.7%

• Non-GAAP gross margin* of 20.8%
• Gross margin from solar segment of 24.0%
• GAAP operating loss of $16.7 million
• Non-GAAP operating income* of $23.1 million
• GAAP net loss of $61.2 million
• Non-GAAP net loss* of $31.0 million
• GAAP net diluted loss per share (“EPS”) of $1.08
• Non-GAAP net diluted loss per share* of $0.55
• 3.8 Gigawatts (AC) of inverters shipped
• 121 MWh of batteries shipped

“The results for the third quarter fell short of our prior expectations and are reflecting a slow market environment, which has resulted in high inventory of our products in the distribution channels, in particular in Europe,” said Zvi Lando, Chief Executive Officer of SolarEdge. “While channel inventory clearing is expected to continue in coming quarters, we are optimistic about the future of the solar PV industry and are confident that our leading technology, global presence and broad product offering will enable us to continue to be a leader in this market.”

Third Quarter 2023 Summary

The Company reported revenues of $725.3 million, down 27% from $991.3 million in the prior quarter and down 13% from $836.7 million in the same quarter last year.

Revenues from the solar segment were $676.4 million, down 29% from $947.4 million in the prior quarter and down 14% from $788.6 million in the same quarter last year.

GAAP gross margin was 19.7%, down from 32.0% in the prior quarter and down from 26.5% in the same quarter last year.

Non-GAAP gross margin* was 20.8%, down from 32.7% in the prior quarter and down from 27.3% in the same quarter last year.

Gross margin from the solar segment was 24.0%, down from 34.7% in the prior quarter and down from 28.3% in the same quarter last year.

GAAP operating expenses were $159.5 million, down 4% from $166.9 million in the prior quarter and up 16% from $137.6 million in the same quarter last year.

Non-GAAP operating expenses* were $128.0 million, down 4% from $133.3 million in the prior quarter and up 18% from $108.3 million in the same quarter last year.

GAAP operating loss was $16.7 million, down from a GAAP operating income of $150.4 million in the prior quarter and down from GAAP operating income of $84.4 million in the same quarter last year.

Non-GAAP operating income* was $23.1 million, down 88% from $191.0 million in the prior quarter and down 81% from $120.2 million in the same quarter last year.

GAAP net loss was $61.2 million, down from a GAAP net income of $119.5 million in the prior quarter and down from a GAAP net income of $24.7 million in the same quarter last year.

Non-GAAP net loss* was $31.0 million, down from a Non-GAAP net income of $157.4 million in the prior quarter and down from a Non-GAAP net income of $54.1 million in the same quarter last year.

GAAP net diluted loss per share was $1.08, down from a GAAP net diluted EPS of $2.03 in the prior quarter and down from a GAAP net diluted EPS of $0.43 in the same quarter last year.

Non-GAAP net diluted loss per share* was $0.55, down from a Non-GAAP net diluted EPS of $2.62 in the prior quarter and down from a Non-GAAP net diluted EPS of $0.91 in the same quarter last year.

Cash generated from operating activities was $40.6 million, compared with $88.7 million used in operating activities in the prior quarter and $5.6 million generated from operating activities in the same quarter last year.

As of September 30, 2023, cash, cash equivalents, bank deposits, restricted bank deposits and marketable securities totaled $831.4 million, net of debt, compared to $853.5 million on June 30, 2023.

Outlook for the Fourth Quarter 2023

The Company also provides guidance for the fourth quarter ending December 31, 2023 as follows:

• Revenues to be within the range of $300 million to $350 million
• Non-GAAP gross margin** expected to be within the range of 5% to 8%, including approximately 130 basis points of net IRA manufacturing tax credit
• Non-GAAP operating expenses** to be within the range of $126 million to $130 million
• Revenues from the solar segment to be within the range of $275 million to $320 million
• Gross margin from the solar segment expected to be within the range of 7% to 10% including approximately 130 basis points of net IRA manufacturing tax credit

* Non-GAAP financial measure. See “Non-GAAP Financial Measures” for additional information on non-GAAP financial measures and a reconciliation to the most comparable GAAP measures.

**Non-GAAP gross margin and Non-GAAP operating expenses are non-GAAP financial measures, and these forward-looking measures have not been reconciled to the most comparable GAAP outlook because it is not possible to do so without unreasonable efforts due to the uncertainty and potential variability of reconciling items, which are dependent on future events and often outside of management’s control and which could be significant. Because such items cannot be reasonably predicted with the level of precision required, we are unable to provide outlook for the comparable GAAP measures. Forward-looking estimates of Non-GAAP gross margin and Non-GAAP operating expenses are made in a manner consistent with the relevant definitions and assumptions noted herein and in our filings with the SEC.

Conference Call

The Company will host a conference call to discuss its results for the third quarter ended September 30, 2023 at 4:30 p.m. ET on Wednesday, November 1, 2023. The call will be available, live, to interested parties by dialing 800-343-4136. For international callers, please dial +1 203-518-9843. The Conference ID is SEDG. To avoid a delay in connecting to the call, please dial in 10 minutes prior to the start time. A live webcast will also be available in the Investors Relations section of the Company’s website at: http://investors.solaredge.com.

A replay of the webcast will be available in the Investor Relations section of the Company’s web site approximately two hours after the conclusion of the call and will remain available for approximately 30 calendar days.

About SolarEdge

SolarEdge is a global leader in smart energy technology. By leveraging world-class engineering capabilities and with a relentless focus on innovation, SolarEdge creates smart energy solutions that power our lives and drive future progress. SolarEdge developed an intelligent inverter solution that changed the way power is harvested and managed in photovoltaic (PV) systems. The SolarEdge DC optimized inverter seeks to maximize power generation while lowering the cost of energy produced by the PV system. Continuing to advance smart energy, SolarEdge addresses a broad range of energy market segments through its PV, storage, EV charging, batteries, electric vehicle powertrains, and grid services solutions. SolarEdge is online at www.solaredge.com.

Use of Non-GAAP Financial Measures

The Company has presented certain non-GAAP financial measures in this release, such as non-GAAP net income, non-GAAP net diluted EPS, non-GAAP gross margin, non-GAAP operating expenses, non-GAAP operating income and non-GAAP gross margin from sale of solar products. Generally, a non-GAAP financial measure is a numerical measure of a company's performance, financial position, or cash flows that either exclude or include amounts that are not normally excluded or included in the most directly comparable measure calculated and presented in accordance with generally accepted accounting principles in the United States, or GAAP. Reconciliation of each non-GAAP financial measure to the most directly comparable GAAP financial measure can be found in the accompanying tables to this release. These non-GAAP financial measures do not reflect a comprehensive system of accounting, differ from GAAP measures with the same captions and may differ from non-GAAP financial measures with the same or similar captions that are used by other companies. As such, these non-GAAP measures should be considered as a supplement to, and not as a substitute for, or superior to, financial measures calculated in accordance with GAAP.

The Non-GAAP measures are presented in this press release because we believe that they provide investors with a means of evaluating and understanding how the Company’s management evaluates the company’s operating performance. The non-GAAP financial measures in this earnings release may differ from similarly titled measures used by other companies.

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995

This release contains forward looking statements which are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include information, among other things, concerning: our possible or assumed future results of operations; future demands for solar energy solutions; business strategies; technology developments; financing and investment plans; dividend policy; competitive position; industry and regulatory environment; general economic conditions; potential growth opportunities; cancellations and pushouts of existing backlog; installation rates; and the effects of competition. These forward-looking statements are often characterized by the use of words such as “anticipate,” “believe,” “could,” “seek,” “estimate,” “expect,” “intend,” “may,” “plan,” “potential,” “predict,” “project,” “should,” “will,” “would” or similar expressions and the negative or plural of those terms and other like terminology.

Forward-looking statements are only predictions based on our current expectations and our projections about future events. These forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause our actual results, levels of activity, performance or achievements to be materially different from those expressed or implied by the forward-looking statements. Given these factors, you should not place undue reliance on these forward-looking statements. These factors include, but are not limited to, future demand for renewable energy including solar energy solutions; changes, elimination or expiration of government subsidies and economic incentives for on-grid solar energy applications; changes in the U.S. trade environment; federal, state, and local regulations governing the electric utility industry with respect to solar energy; changes in tax laws, tax treaties, and regulations or the interpretation of them, including the Inflation Reduction Act; the retail price of electricity derived from the utility grid or alternative energy sources; interest rates and supply of capital in the global financial markets in general and in the solar market specifically; competition, including introductions of power optimizer, inverter and solar photovoltaic system monitoring products by our competitors; developments in alternative technologies or improvements in distributed solar energy generation; historic cyclicality of the solar industry; product quality or performance problems in our products; our ability to forecast demand for our products accurately and to match production to such demand as well as our customers’ ability to forecast demand based on inventory levels; our dependence upon a small number of outside contract manufacturers and limited or single source suppliers; capacity constraints, delivery schedules, manufacturing yields, and costs of our contract manufacturers and availability of components; delays, disruptions, and quality control problems in manufacturing; existing and future responses to and effects of pandemics, epidemics, or other health crises; disruption in our global supply chain and rising prices of oil and raw materials as a result of various conflicts, including the evolving state of war in Israel; our customers’ financial stability and our ability to retain customers; our ability to retain key personnel and attract additional qualified personnel; our ability to manage effectively the growth of our organization and expansion into new markets and integration of acquired businesses; unrest and terrorism; macroeconomic conditions in our domestic and international markets, as well as inflation concerns, financial institutions instability, rising interest rates, recessionary concerns, the prospect of a shutdown of the U.S. federal government and the Israeli government's plans to significantly reduce the Israeli Supreme Court's judicial oversight; consolidation in the solar industry among our customers and distributors; cyber incidents; and other matters discussed in the section entitled “Risk Factors” of our Annual Report on Form 10-K for the year ended December 31, 2022, filed on February 22, 2023 and our quarterly reports filed on Form 10-Q, Current Reports on Form 8-K and other reports filed with the SEC. All information set forth in this release is as of November 1, 2023. The Company undertakes no duty or obligation to update any forward-looking statements contained in this release, whether as a result of new information, future events or changes in its expectations or otherwise, except as may be required by applicable law, regulation or other competent legal authority.

SOLAREDGE TECHNOLOGIES INC.

CONDENSED CONSOLIDATED STATEMENTS OF INCOME (LOSS)

(in thousands, except per share data) 

 

 

Three Months Ended September 30,

 

Nine Months Ended September 30,

 

 

2023

 

2022

 

2023

 

2022

 

 

Unaudited

Revenues

 

$

725,305

 

 

$

836,723

 

 

$

2,660,484

 

 

$

2,219,577

 

Cost of revenues

 

 

582,488

 

 

 

614,722

 

 

 

1,900,236

 

 

 

1,635,976

 

Gross profit

 

 

142,817

 

 

 

222,001

 

 

 

760,248

 

 

 

583,601

 

Operating expenses:

 

 

 

 

 

 

 

 

Research and development

 

 

80,082

 

 

 

69,659

 

 

 

246,481

 

 

 

210,855

 

Sales and marketing

 

 

40,351

 

 

 

42,726

 

 

 

125,539

 

 

 

117,017

 

General and administrative

 

 

39,110

 

 

 

27,933

 

 

 

111,876

 

 

 

82,483

 

Other operating expense (income), net

 

 

—

 

 

 

(2,724

)

 

 

(1,434

)

 

 

1,963

 

Total operating expenses

 

 

159,543

 

 

 

137,594

 

 

 

482,462

 

 

 

412,318

 

Operating income (loss)

 

 

(16,726

)

 

 

84,407

 

 

 

277,786

 

 

 

171,283

 

Financial income (expense), net

 

 

(7,901

)

 

 

(33,146

)

 

 

19,157

 

 

 

(52,062

)

Other income (loss), net

 

 

(484

)

 

 

7,654

 

 

 

(609

)

 

 

6,810

 

Income (loss) before income taxes

 

 

(25,111

)

 

 

58,915

 

 

 

296,334

 

 

 

126,031

 

Income taxes

 

 

36,065

 

 

 

34,172

 

 

 

99,622

 

 

 

53,081

 

Net income (loss)

 

$

(61,176

)

 

$

24,743

 

 

$

196,712

 

 

$

72,950

 

SOLAREDGE TECHNOLOGIES INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(in thousands, except per share data) 

 

September 30, 2023

 

December 31, 2022

ASSETS

 

 

 

 

CURRENT ASSETS:

 

 

 

 

Cash and cash equivalents

 

$

551,122

 

 

$

783,112

 

Marketable securities

 

 

477,275

 

 

 

241,117

 

Trade receivables, net of allowances of $14,930 and $3,202, respectively

 

 

939,545

 

 

 

905,146

 

Inventories, net

 

 

1,177,805

 

 

 

729,201

 

Prepaid expenses and other current assets

 

 

217,720

 

 

 

241,082

 

Total current assets

 

 

3,363,467

 

 

 

2,899,658

 

LONG-TERM ASSETS:

 

 

 

 

Marketable securities

 

 

436,139

 

 

 

645,491

 

Deferred tax assets, net

 

 

60,147

 

 

 

44,153

 

Property, plant and equipment, net

 

 

604,819

 

 

 

543,969

 

Operating lease right-of-use assets, net

 

 

67,331

 

 

 

62,754

 

Intangible assets, net

 

 

41,947

 

 

 

19,929

 

Goodwill

 

 

41,201

 

 

 

31,189

 

Other long-term assets

 

 

36,103

 

 

 

18,806

 

Total long-term assets

 

 

1,287,687

 

 

 

1,366,291

 

Total assets

 

 

4,651,154

 

 

 

4,265,949

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

 

 

CURRENT LIABILITIES:

 

 

 

 

Trade payables, net

 

 

394,569

 

 

 

459,831

 

Employees and payroll accruals

 

 

77,740

 

 

 

85,158

 

Warranty obligations

 

 

175,426

 

 

 

103,975

 

Deferred revenues and customers advances

 

 

22,064

 

 

 

26,641

 

Accrued expenses and other current liabilities

 

 

203,448

 

 

 

214,112

 

Total current liabilities

 

 

873,247

 

 

 

889,717

 

LONG-TERM LIABILITIES:

 

 

 

 

Convertible senior notes, net

 

 

626,647

 

 

 

624,451

 

Warranty obligations

 

 

345,091

 

 

 

281,082

 

Deferred revenues

 

 

212,025

 

 

 

186,936

 

Finance lease liabilities

 

 

40,323

 

 

 

45,385

 

Operating lease liabilities

 

 

46,580

 

 

 

46,256

 

Other long-term liabilities

 

 

16,835

 

 

 

15,756

 

Total long-term liabilities

 

 

1,287,501

 

 

 

1,199,866

 

COMMITMENTS AND CONTINGENT LIABILITIES

 

 

 

 

STOCKHOLDERS’ EQUITY:

 

 

 

 

Common stock of $0.0001 par value - Authorized: 125,000,000 shares as of September 30, 2023 and December 31, 2022; issued and outstanding: 56,810,559 and 56,133,404 shares as of September 30, 2023 and December 31, 2022, respectively

 

 

6

 

 

 

6

 

Additional paid-in capital

 

 

1,633,800

 

 

 

1,505,632

 

Accumulated other comprehensive loss

 

 

(83,949

)

 

 

(73,109

)

Retained earnings

 

 

940,549

 

 

 

743,837

 

Total stockholders’ equity

 

 

2,490,406

 

 

 

2,176,366

 

Total liabilities and stockholders’ equity

 

$

4,651,154

 

 

$

4,265,949

 

SOLAREDGE TECHNOLOGIES INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands, except per share data)

 

Nine Months Ended September 30,

 

 

2023

 

2022

Cash flows from operating activities:

 

 

 

 

Net income

 

$

196,712

 

 

$

72,950

 

Adjustments to reconcile net income to net cash provided by (used in) operating activities:

 

 

 

 

Depreciation and amortization

 

 

42,019

 

 

 

37,312

 

Loss (gain) from exchange rate fluctuations

 

 

(8,170

)

 

 

58,100

 

Stock-based compensation expenses

 

 

115,015

 

 

 

106,932

 

Impairment of goodwill and intangible assets

 

 

—

 

 

 

4,008

 

Deferred income taxes, net

 

 

(18,199

)

 

 

(3,822

)

Other items

 

 

6,915

 

 

 

8,594

 

Changes in assets and liabilities:

 

 

 

 

Inventories, net

 

 

(437,801

)

 

 

(188,579

)

Prepaid expenses and other assets

 

 

19,822

 

 

 

(55,478

)

Trade receivables, net

 

 

(40,011

)

 

 

(377,089

)

Trade payables, net

 

 

(58,701

)

 

 

53,683

 

Employees and payroll accruals

 

 

12,099

 

 

 

12,119

 

Warranty obligations

 

 

135,568

 

 

 

82,025

 

Deferred revenues and customers advances

 

 

18,580

 

 

 

41,440

 

Accrued expenses and other liabilities, net

 

 

(24,051

)

 

 

67,789

 

Net cash used in operating activities

 

 

(40,203

)

 

 

(80,016

)

Cash flows from investing activities:

 

 

 

 

Investment in available-for-sale marketable securities

 

 

(214,516

)

 

 

(461,491

)

Proceeds from sales and maturities of available-for-sale marketable securities

 

 

194,617

 

 

 

178,415

 

Purchase of property, plant and equipment

 

 

(130,024

)

 

 

(125,085

)

Business combinations, net of cash acquired

 

 

(16,653

)

 

 

—

 

Purchase of intangible assets

 

 

(10,600

)

 

 

—

 

Disbursements for loans receivables

 

 

(13,000

)

 

 

—

 

Investment in privately-held companies

 

 

(8,000

)

 

 

—

 

Proceeds from governmental grant

 

 

6,796

 

 

 

—

 

Proceeds from sale of a privately-held company

 

 

—

 

 

 

24,175

 

Other investing activities

 

 

3,193

 

 

 

3,472

 

Net cash used in investing activities

 

 

(188,187

)

 

 

(380,514

)

Cash flows from financing activities:

 

 

 

 

Tax withholding in connection with stock-based awards, net

 

 

(9,267

)

 

 

(4,686

)

Payments of finance lease liability

 

 

(2,123

)

 

 

(2,109

)

Proceeds from secondary public offering, net of issuance costs

 

 

—

 

 

 

650,526

 

Other financing activities

 

 

85

 

 

 

3,404

 

Net cash provided by (used in) financing activities

 

 

(11,305

)

 

 

647,135

 

Increase (decrease) in cash and cash equivalents

 

 

(239,695

)

 

 

186,605

 

Cash and cash equivalents at the beginning of the period

 

 

783,112

 

 

 

530,089

 

Effect of exchange rate differences on cash and cash equivalents

 

 

7,705

 

 

 

(38,365

)

Cash and cash equivalents at the end of the period

 

 

551,122

 

 

 

678,329

 

SOLAREDGE TECHNOLOGIES INC.

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (Unaudited)

(in thousands, except per share data and percentages) 

 

Reconciliation of GAAP to Non-GAAP

 

Q3-22

 

Q4-22

 

Q1-23

 

Q2-23

 

Q3-23

Gross profit (GAAP)

$

222,001

 

 

$

261,047

 

 

$

300,126

 

 

$

317,305

 

 

$

142,817

 

Revenues from finance component

 

(159

)

 

 

(174

)

 

 

(187

)

 

 

(202

)

 

 

(215

)

Stock-based compensation

 

4,661

 

 

 

6,810

 

 

 

5,927

 

 

 

5,923

 

 

 

5,882

 

Amortization of stock-based compensation capitalized in inventories

 

—

 

 

 

—

 

 

 

—

 

 

 

316

 

 

 

441

 

Amortization and depreciation of acquired asset

 

2,064

 

 

 

961

 

 

 

1,515

 

 

 

872

 

 

 

2,096

 

Gross profit (Non-GAAP)

$

228,567

 

 

$

268,644

 

 

$

307,381

 

 

$

324,214

 

 

$

151,021

 

 

 

 

 

 

 

 

 

 

 

Gross margin (GAAP)

 

26.5

%

 

 

29.3

%

 

 

31.8

%

 

 

32.0

%

 

 

19.7

%

Revenues from finance component

 

0.0

%

 

 

0.0

%

 

 

0.0

%

 

 

0.0

%

 

 

0.0

%

Stock-based compensation

 

0.6

%

 

 

0.8

%

 

 

0.6

%

 

 

0.6

%

 

 

0.8

%

Amortization of stock-based compensation capitalized in inventories

 

—

%

 

 

—

%

 

 

—

%

 

 

0.0

%

 

 

0.0

%

Amortization and depreciation of acquired assets

 

0.2

%

 

 

0.1

%

 

 

0.2

%

 

 

0.1

%

 

 

0.3

%

Gross margin (Non-GAAP)

 

27.3

%

 

 

30.2

%

 

 

32.6

%

 

 

32.7

%

 

 

20.8

%

 

 

 

 

 

 

 

 

 

 

Operating expenses (GAAP)

$

137,594

 

 

$

266,210

 

 

$

155,972

 

 

$

166,947

 

 

$

159,543

 

Stock-based compensation - R&D

 

(14,553

)

 

 

(16,854

)

 

 

(17,209

)

 

 

(17,272

)

 

 

(16,481

)

Stock-based compensation - S&M

 

(9,341

)

 

 

(7,928

)

 

 

(8,079

)

 

 

(7,822

)

 

 

(7,739

)

Stock-based compensation - G&A

 

(7,196

)

 

 

(7,015

)

 

 

(8,020

)

 

 

(7,948

)

 

 

(6,713

)

Amortization and depreciation of acquired assets - R&D

 

(302

)

 

 

(301

)

 

 

(313

)

 

 

(289

)

 

 

(329

)

Amortization and depreciation of acquired assets - S&M

 

(187

)

 

 

(173

)

 

 

(181

)

 

 

(235

)

 

 

(321

)

Amortization and depreciation of acquired assets - G&A

 

(6

)

 

 

(4

)

 

 

(26

)

 

 

17

 

 

 

(4

)

Assets impairment

 

19

 

 

 

(114,473

)

 

 

—

 

 

 

—

 

 

 

—

 

Gain (loss) from assets sales and disposal

 

2,303

 

 

 

(102

)

 

 

1,434

 

 

 

—

 

 

 

—

 

Acquisition costs

 

—

 

 

 

(350

)

 

 

—

 

 

 

(135

)

 

 

—

 

Operating expenses (Non-GAAP)

$

108,331

 

 

$

119,010

 

 

$

123,578

 

 

$

133,263

 

 

$

127,956

 

SOLAREDGE TECHNOLOGIES INC.

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (Unaudited)

(in thousands, except per share data and percentages)

 

 

Reconciliation of GAAP to Non-GAAP

 

Q3-22

 

Q4-22

 

Q1-23

 

Q2-23

 

Q3-23

Operating income (loss) (GAAP)

$

84,407

 

 

$

(5,163

)

 

$

144,154

 

 

$

150,358

 

 

$

(16,726

)

Revenues from finance component

 

(159

)

 

 

(174

)

 

 

(187

)

 

 

(202

)

 

 

(215

)

Stock-based compensation

 

35,751

 

 

 

38,607

 

 

 

39,235

 

 

 

38,965

 

 

 

36,815

 

Amortization of stock-based compensation capitalized in inventories

 

—

 

 

 

—

 

 

 

—

 

 

 

316

 

 

 

441

 

Amortization and depreciation of acquired assets

 

2,559

 

 

 

1,439

 

 

 

2,035

 

 

 

1,379

 

 

 

2,750

 

Assets impairment

 

(19

)

 

 

114,473

 

 

 

—

 

 

 

—

 

 

 

—

 

Loss (gain) from assets sales and disposal

 

(2,303

)

 

 

102

 

 

 

(1,434

)

 

 

—

 

 

 

—

 

Acquisition costs

 

—

 

 

 

350

 

 

 

—

 

 

 

135

 

 

 

—

 

Operating income (Non-GAAP)

$

120,236

 

 

$

149,634

 

 

$

183,803

 

 

$

190,951

 

 

$

23,065

 

 

 

 

 

 

 

 

 

 

 

Financial income (expense), net (GAAP)

$

(33,025

)

 

$

56,101

 

 

$

23,674

 

 

$

3,384

 

 

$

(7,901

)

Non cash interest expense

 

2,505

 

 

 

2,685

 

 

 

2,892

 

 

 

3,105

 

 

 

3,284

 

Unrealized losses (gains)

 

—

 

 

 

(170

)

 

 

—

 

 

 

—

 

 

 

—

 

Currency fluctuation related to lease standard

 

(1,116

)

 

 

749

 

 

 

(2,519

)

 

 

(2,107

)

 

 

(2,788

)

Financial income (expense), net (Non-GAAP)

$

(31,636

)

 

$

59,365

 

 

$

24,047

 

 

$

4,382

 

 

$

(7,405

)

 

 

 

 

 

 

 

 

 

 

Other income (loss) (GAAP)

$

7,533

 

 

$

186

 

 

$

(125

)

 

$

—

 

 

$

(484

)

Loss (gain) from sale of investment in privately-held company

 

(7,533

)

 

 

(186

)

 

 

—

 

 

 

—

 

 

 

484

 

Other income (loss) (Non-GAAP)

$

—

 

 

$

—

 

 

$

(125

)

 

$

—

 

 

$

—

 

 

 

 

 

 

 

 

 

 

 

Income tax benefit (expense) (GAAP)

$

(34,172

)

 

$

(30,295

)

 

$

(29,325

)

 

$

(34,232

)

 

$

(36,065

)

Income tax adjustment

 

(291

)

 

 

(7,186

)

 

 

(3,901

)

 

 

(3,735

)

 

 

(10,561

)

Income tax benefit (expense) (Non-GAAP)

$

(34,463

)

 

$

(37,481

)

 

$

(33,226

)

 

$

(37,967

)

 

$

(46,626

)

SOLAREDGE TECHNOLOGIES INC.

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (Unaudited)

(in thousands, except per share data and percentages) 

 

Reconciliation of GAAP to Non-GAAP

 

Q3-22

 

Q4-22

 

Q1-23

 

Q2-23

 

Q3-23

Net income (loss) (GAAP)

$

24,743

 

 

$

20,829

 

 

$

138,378

 

 

$

119,510

 

 

$

(61,176

)

Revenues from finance component

 

(159

)

 

 

(174

)

 

 

(187

)

 

 

(202

)

 

 

(215

)

Stock-based compensation

 

35,751

 

 

 

38,607

 

 

 

39,235

 

 

 

38,965

 

 

 

36,815

 

Amortization of stock-based compensation capitalized in inventories

 

—

 

 

 

—

 

 

 

—

 

 

 

316

 

 

 

441

 

Amortization and depreciation of acquired assets

 

2,559

 

 

 

1,439

 

 

 

2,035

 

 

 

1,379

 

 

 

2,750

 

Assets impairment

 

(19

)

 

 

114,473

 

 

 

—

 

 

 

—

 

 

 

—

 

Loss (gain) from assets sales and disposal

 

(2,303

)

 

 

102

 

 

 

(1,434

)

 

 

—

 

 

 

—

 

Acquisition costs

 

—

 

 

 

350

 

 

 

—

 

 

 

135

 

 

 

—

 

Non cash interest expense

 

2,505

 

 

 

2,685

 

 

 

2,892

 

 

 

3,105

 

 

 

3,284

 

Unrealized losses (gains)

 

—

 

 

 

(170

)

 

 

—

 

 

 

—

 

 

 

—

 

Currency fluctuation related to lease standard

 

(1,116

)

 

 

749

 

 

 

(2,519

)

 

 

(2,107

)

 

 

(2,788

)

Loss (gain) from sale of investment in privately-held company

 

(7,533

)

 

 

(186

)

 

 

—

 

 

 

—

 

 

 

484

 

Income tax adjustment

 

(291

)

 

 

(7,186

)

 

 

(3,901

)

 

 

(3,735

)

 

 

(10,561

)

Net income (loss) (Non-GAAP)

$

54,137

 

 

$

171,518

 

 

$

174,499

 

 

$

157,366

 

 

$

(30,966

)

 

 

 

 

 

 

 

 

 

 

Net basic earnings (loss) per share (GAAP)

$

0.44

 

 

$

0.37

 

 

$

2.46

 

 

$

2.12

 

 

$

(1.08

)

Revenues from finance component

 

0.00

 

 

 

0.00

 

 

 

0.00

 

 

 

(0.01

)

 

 

0.00

 

Stock-based compensation

 

0.64

 

 

 

0.69

 

 

 

0.70

 

 

 

0.70

 

 

 

0.65

 

Amortization of stock-based compensation capitalized in inventories

 

—

 

 

 

—

 

 

 

—

 

 

 

0.00

 

 

 

0.00

 

Amortization and depreciation of acquired assets

 

0.05

 

 

 

0.02

 

 

 

0.03

 

 

 

0.03

 

 

 

0.05

 

Assets impairment

 

0.00

 

 

 

2.05

 

 

 

—

 

 

 

—

 

 

 

—

 

Loss (gain) from assets sales and disposal

 

(0.04

)

 

 

0.00

 

 

 

(0.02

)

 

 

—

 

 

 

—

 

Acquisition costs

 

—

 

 

 

0.01

 

 

 

—

 

 

 

0.00

 

 

 

—

 

Non cash interest expense

 

0.04

 

 

 

0.05

 

 

 

0.05

 

 

 

0.05

 

 

 

0.06

 

Unrealized losses (gains)

 

—

 

 

 

(0.01

)

 

 

—

 

 

 

—

 

 

 

—

 

Currency fluctuation related to lease standard

 

(0.02

)

 

 

0.02

 

 

 

(0.05

)

 

 

(0.03

)

 

 

(0.05

)

Loss (gain) from sale of investment in privately-held company

 

(0.13

)

 

 

(0.01

)

 

 

—

 

 

 

—

 

 

 

0.01

 

Income tax adjustment

 

(0.01

)

 

 

(0.13

)

 

 

(0.07

)

 

 

(0.07

)

 

 

(0.19

)

Net basic earnings (loss) per share (Non-GAAP)

$

0.97

 

 

$

3.06

 

 

$

3.10

 

 

$

2.79

 

 

$

(0.55

)

SOLAREDGE TECHNOLOGIES INC.

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (Unaudited)

(in thousands, except per share data and percentages) 

 

 

Reconciliation of GAAP to Non-GAAP

 

Q3-22

 

Q4-22

 

Q1-23

 

Q2-23

 

Q3-23

Net diluted earnings (loss) per share (GAAP)

$

0.43

 

 

$

0.36

 

 

$

2.35

 

 

$

2.03

 

 

$

(1.08

)

Revenues from finance component

 

0.00

 

 

 

0.00

 

 

 

(0.01

)

 

 

(0.01

)

 

 

0.00

 

Stock-based compensation

 

0.59

 

 

 

0.64

 

 

 

0.62

 

 

 

0.62

 

 

 

0.65

 

Amortization of stock-based compensation capitalized in inventories

 

—

 

 

 

—

 

 

 

—

 

 

 

0.00

 

 

 

0.00

 

Amortization and depreciation of acquired assets

 

0.05

 

 

 

0.02

 

 

 

0.03

 

 

 

0.03

 

 

 

0.05

 

Assets impairment

 

0.00

 

 

 

1.91

 

 

 

—

 

 

 

—

 

 

 

—

 

Loss (gain) from assets sales and disposal

 

(0.04

)

 

 

0.00

 

 

 

(0.02

)

 

 

—

 

 

 

—

 

Acquisition costs

 

—

 

 

 

0.01

 

 

 

—

 

 

 

0.00

 

 

 

—

 

Non cash interest expense

 

0.03

 

 

 

0.03

 

 

 

0.04

 

 

 

0.04

 

 

 

0.06

 

Unrealized losses (gains)

 

—

 

 

 

0.00

 

 

 

—

 

 

 

—

 

 

 

—

 

Currency fluctuation related to lease standard

 

(0.02

)

 

 

0.01

 

 

 

(0.04

)

 

 

(0.03

)

 

 

(0.05

)

Loss (gain) from sale of investment in privately-held company

 

(0.13

)

 

 

0.00

 

 

 

—

 

 

 

—

 

 

 

0.01

 

Income tax adjustment

 

0.00

 

 

 

(0.12

)

 

 

(0.07

)

 

 

(0.06

)

 

 

(0.19

)

Net diluted earnings (loss) per share (Non-GAAP)

$

0.91

 

 

$

2.86

 

 

$

2.90

 

 

$

2.62

 

 

$

(0.55

)

 

 

 

 

 

 

 

 

 

 

Number of shares used in computing net diluted earnings (loss) per share (GAAP)

 

58,747,538

 

 

 

58,734,719

 

 

 

59,193,831

 

 

 

59,183,666

 

 

 

56,671,504

 

Stock-based compensation

 

784,228

 

 

 

1,237,266

 

 

 

939,571

 

 

 

986,527

 

 

 

0

 

Number of shares used in computing net diluted earnings (loss) per share (Non-GAAP)

 

59,531,766

 

 

 

59,971,985

 

 

 

60,133,402

 

 

 

60,170,193

 

 

 

56,671,504

 

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20231101275481/en/

Investor Contacts SolarEdge Technologies, Inc. JB Lowe, Head of Investor Relations investors@solaredge.com

Sapphire Investor Relations, LLC Erica Mannion or Michael Funari investors@solaredge.com