SolarEdge Technologies, Inc. (Nasdaq: SEDG), a global leader in
smart energy technology, today announced its financial results for
the second quarter ended June 30, 2024.
Second Quarter 2024 Highlights
- Revenues of $265.4 million
- Revenues from solar segment of $241.2 million
- GAAP gross margin of negative 4.1%
- Non-GAAP gross margin1 of 0.2%, including 330 basis points of
net IRA benefit
- Gross margin from solar segment of 1.3%
- GAAP operating loss of $160.2 million
- Non-GAAP operating loss1 of $114.3 million
- GAAP net loss of $130.8 million
- Non-GAAP net loss1 of $101.2 million
- GAAP net loss per share of $2.31
- Non-GAAP net loss per share1 of $1.79
- 873 Megawatts (AC) of inverters shipped
- 128 MWh of batteries for PV applications shipped
“We are encouraged by our second quarter top line results which
saw sequential revenue growth of 30% and an 18% growth in sell
through of our solar products by our distributor customers,” said
Zvi Lando, Chief Executive Officer of SolarEdge. “While we expect
undershipping to continue in the third quarter, we believe the
momentum in our underlying business and the actions we are taking
to gain market share and address new growth segments will enable a
return to higher revenue levels once inventories are cleared in the
first half of 2025.”
Second Quarter 2024 Summary
The Company reported revenues of $265.4 million, up 30% from
$204.4 million in the prior quarter and down 73% from $991.3
million in the same quarter last year.
Revenues from the solar segment were $241.2 million, up 27% from
$190.1 million in the prior quarter and down 75% from $947.4
million in the same quarter last year.
GAAP gross margin was negative 4.1%, compared to negative 12.8%
in the prior quarter and compared to 32.0% in the same quarter last
year.
Non-GAAP gross margin1 was 0.2%, compared to non-GAAP gross
margin of negative 6.5% in the prior quarter and compared to 32.7%
in the same quarter last year.
Gross margin from the solar segment was 1.3%, compared to
negative 3.5% in the prior quarter and compared to 34.7% in the
same quarter last year.
GAAP operating expenses were $149.2 million, up 1% from $147.5
million in the prior quarter and down 11% from $166.9 million in
the same quarter last year.
Non-GAAP operating expenses1 were $114.8 million, up 5% from
$109.2 million in the prior quarter and down 14% from $133.3
million in the same quarter last year.
GAAP operating loss was $160.2 million, compared to a GAAP
operating loss of $173.7 million in the prior quarter and compared
to GAAP operating income of $150.4 million in the same quarter last
year.
Non-GAAP operating loss1 was $114.3 million, compared to
Non-GAAP operating loss of $122.5 million in the prior quarter and
compared to Non-GAAP operating income of $191.0 million in the same
quarter last year.
GAAP net loss was $130.8 million, compared to a GAAP net loss of
$157.3 million in the prior quarter and compared to a GAAP net
income of $119.5 million in the same quarter last year.
Non-GAAP net loss1 was $101.2 million, compared to a Non-GAAP
net loss of $108.6 million in the prior quarter and compared to a
Non-GAAP net income of $157.4 million in the same quarter last
year.
GAAP net loss per share was $2.31, compared to a GAAP net loss
per share of $2.75 in the prior quarter and compared to a GAAP net
diluted earnings per share (“EPS”) of $2.03 in the same quarter
last year.
Non-GAAP net loss per share1 was $1.79, compared to a Non-GAAP
net loss per share of $1.90 in the prior quarter and compared to a
Non-GAAP net diluted EPS of $2.62 in the same quarter last
year.
Cash used in operating activities was $44.8 million, compared
with $217.0 million used in operating activities in the prior
quarter and $88.7 million used in operating activities in the same
quarter last year.
As of June 30, 2024, cash, cash equivalents, bank deposits,
restricted bank deposits and marketable securities totaled $165.3
million, net of debt, compared to $316.3 million as of March 31,
2024.
In the second quarter of 2024, the company repurchased 247,468
shares of our common stock under our previously announced share
repurchase program approved by the Board of Directors at an average
price of $68.70 per share, for a total consideration of
approximately $17 million.
______________________________________________________________________
1 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.
Outlook for the Third Quarter 2024
The Company also provides guidance for the third quarter ending
September 30, 2024 as follows:
- Revenues to be within the range of $260 million to $290
million
- Non-GAAP gross margin* expected to be within the range of
negative 3% to positive 1%, including approximately 560 basis
points of net IRA manufacturing tax credit
- Non-GAAP operating expenses* to be within the range of $111
million to $116 million
- Revenues from the solar segment to be within the range of $245
million to $280 million
- Gross margin from the solar segment expected to be within the
range of 0% to 4% including approximately 590 basis points of net
IRA manufacturing tax credit
*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 second quarter ended June 30, 2024 at 4:30 p.m. ET on
Wednesday, August 7, 2024. The call will be available, live, to
interested parties by dialing 800-445-7795. For international
callers, please dial +1 785-424-1699. 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, and grid services solutions. SolarEdge is
online at www.solaredge.com
Use of Non-GAAP Financial Measures
To provide investors and others with additional information
regarding SolarEdge’s results, SolarEdge has disclosed in this
earnings release the following non-GAAP financial measures:
non-GAAP operating income (loss), non-GAAP operating expenses,
non-GAAP gross margin, non-GAAP net income (loss), and non-GAAP net
earnings (loss) per share. SolarEdge has provided a reconciliation
of each non-GAAP financial measure used in this earnings release to
the most directly comparable GAAP financial measure below. These
non-GAAP financial measures differ from GAAP in that they exclude
stock-based compensation, amortization and impairment of acquired
intangible assets, restructuring and impairment charges,
acquisition, disposition and other items, certain litigation and
other contingencies, amortization of debt issuance cost, non-cash
interest expense and non-cash revenue recognized from significant
financing component, certain foreign currency exchange rates, gains
and losses on investments, income and losses from equity method
investments and discrete items that impacted our GAAP tax rate. Our
non-GAAP financial measures also reflect the application of our
non-GAAP tax rate.
SolarEdge’s management uses these non-GAAP financial measures to
understand and compare operating results across accounting periods,
for internal budgeting and forecasting purposes, for short- and
long-term operating plans, to calculate bonus payments and to
evaluate SolarEdge’s financial performance, the performance of its
individual functional groups and the ability of operations to
generate cash. Management believes these non-GAAP financial
measures reflect SolarEdge’s ongoing business in a manner that
allows for meaningful period-to-period comparisons and analysis of
trends in SolarEdge’s business, as they exclude charges and gains
that are not reflective of ongoing operating results. Management
also believes that these non-GAAP financial measures provide useful
information to investors and others in understanding and evaluating
SolarEdge’s operating results and future prospects from the same
perspective as management and in comparing financial results across
accounting periods.
The use of non-GAAP financial measures has certain limitations
because they do not reflect all items of income and expense that
affect SolarEdge’s operations. These non-GAAP financial measures
should be considered in addition to, not as a substitute for or in
isolation from, measures prepared in accordance with GAAP and
should not be considered measures of SolarEdge’s liquidity.
Further, these non-GAAP measures may differ from the non-GAAP
information used by other companies, including peer companies, and
therefore comparability may be limited. Management encourages
investors and others to review SolarEdge’s financial information in
its entirety and not rely on a single financial measure.
Safe Harbor Statement under the Private Securities Litigation
Reform Act of 1995
Statements contained in this press release contains may contain
forward-looking statements that are based on our management’s
expectations, estimates, projections, beliefs and assumptions in
accordance with information currently available to our management.
This press release contains certain forward looking statements
within the meaning of Section 27A of the Securities Act of 1933, as
amended, and Section 21E of the Securities Exchange Act of 1934, as
amended. 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, new products and services,
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. Forward-looking statements include statements that
are not historical facts and can be identified by terms such as
“anticipate,” “believe,” “could,” “seek,” “estimate,” “expect,”
“intend,” “may,” “plan,” “potential,” “predict,” “project,”
“should,” “will,” “would” or similar expressions and the negatives
of those terms.
Forward-looking statements inherently involve known and unknown
risks, uncertainties and other factors that may cause our actual
results, performance or achievements to be materially different
from any future results, performance or achievements expressed or
implied by the forward-looking statements. Given these
uncertainties, you should not place undue reliance on
forward-looking statements. Also, forward-looking statements
represent our management’s beliefs and assumptions only as of the
date of this release. Important factors that could cause actual
results to differ materially from our expectations include, but are
not limited to: future demand for renewable energy including solar
energy solutions; 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;
macroeconomic conditions in our domestic and international markets,
as well as inflation concerns, rising interest rates, and
recessionary concerns; 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 and periodic downturns; product
quality or performance problems in our products; shortages, delays,
price changes, or cessation of operations or production affecting
our suppliers of key components; 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 the conflict between Russia and Ukraine; our customers’
financial stability and our ability to retain customers; our
ability to retain key personnel and attract additional qualified
personnel; performance of distributors and large installers in
selling our products; consolidation in the solar industry among our
customers and distributors; our ability to manage effectively the
growth of our organization and expansion into new markets and
integration of acquired businesses; our ability to recognize
expected benefits from restructuring plans; any unauthorized access
to, disclosure, or theft of personal information or unauthorized
access to our network or other similar cyber incidents; disruption
to our business operations due to the evolving state of war in
Israel and political conditions related to the Israeli government's
plans to significantly reduce the Israeli Supreme Court's judicial
oversight; our dependence on ocean transportation to timely deliver
our products in a cost-effective manner; fluctuations in global
currency exchange rates; the impact of evolving legal and
regulatory requirements, including emerging environmental, social
and governance requirements; changes to net metering policies or
the reduction, elimination or expiration of government subsidies
and economic incentives for on-grid solar energy applications;
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; changes in the U.S. trade
environment, including the imposition of import tariffs; business
practices and regulatory compliance of our raw material suppliers;
our ability to maintain our brand and to protect and defend our
intellectual property; the impairment of our goodwill or other
intangible assets; volatility of our stock price; our customers’
financial stability, creditworthiness, and debt leverage ratio; our
ability to retain key personnel and attract additional qualified
personnel; our ability to effectively design, launch, market, and
sell new generations of our products and services; our ability to
retain, and events affecting, our major customers; our ability to
service our debt; and the other factors set forth under “Item 1A.
Risk Factors” in our Annual Report on Form 10-K for the year ended
December 31, 2023, filed on February 26, 2024, and in other
documents we file from time to time with the SEC that disclose
risks and uncertainties that may affect our business. The preceding
list is not intended to be an exhaustive list of all of our
forward‐looking statements. You should not rely upon
forward‐looking statements as predictions of future events.
Although we believe that the expectations reflected in the
forward‐looking statements are reasonable, we cannot guarantee that
future results, levels of activity, performance and events and
circumstances reflected in the forward‐looking statements will be
achieved or will occur. Statements in this press release speak only
as of the date they were made. 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 June
30,
Six Months Ended June
30,
2024
2023
2024
2023
Unaudited
Unaudited
Revenues
$
265,405
$
991,290
$
469,804
$
1,935,179
Cost of revenues
276,374
673,985
506,960
1,317,748
Gross profit (loss)
(10,969
)
317,305
(37,156
)
617,431
Operating expenses:
Research and development
69,276
86,526
144,627
166,399
Sales and marketing
39,978
44,222
78,889
85,188
General and administrative
39,008
36,199
69,873
72,766
Other operating expense (income), net
951
—
3,342
(1,434
)
Total
operating expenses
149,213
166,947
296,731
322,919
Operating income (loss)
(160,182
)
150,358
(333,887
)
294,512
Financial income (expense), net
(865
)
3,384
(7,929
)
27,058
Other income (loss), net
18,551
—
18,551
(125
)
Income (loss) before income taxes
(142,496
)
153,742
(323,265
)
321,445
Tax benefits (income taxes)
12,245
(34,232
)
35,999
(63,557
)
Net loss from equity method
investments
(567
)
—
(863
)
—
Net income (loss)
$
(130,818
)
$
119,510
$
(288,129
)
$
257,888
SOLAREDGE TECHNOLOGIES
INC.
CONDENSED CONSOLIDATED BALANCE
SHEETS
(in thousands, except per share
data)
June 30,
2024
December 31,
2023
ASSETS
CURRENT ASSETS:
Cash and cash equivalents
$
259,498
$
338,468
Marketable securities
430,333
521,570
Trade receivables, net of allowances of
$27,626 and $16,400, respectively
295,590
622,425
Inventories, net
1,505,101
1,443,449
Prepaid expenses and other current
assets
402,673
378,394
Total current
assets
2,893,195
3,304,306
LONG-TERM ASSETS:
Marketable securities
120,260
407,825
Deferred tax assets, net
131,748
80,912
Property, plant and equipment, net
595,623
614,579
Operating lease right-of-use assets,
net
53,510
64,167
Intangible assets, net
36,790
35,345
Goodwill
52,042
42,996
Other long-term assets
65,046
37,601
Total
long-term assets
1,055,019
1,283,425
Total
assets
3,948,214
4,587,731
LIABILITIES AND STOCKHOLDERS’ EQUITY
CURRENT LIABILITIES:
Trade payables, net
134,421
386,471
Employees and payroll accruals
67,810
76,966
Warranty obligations
169,214
183,047
Deferred revenues and customers
advances
28,457
40,836
Accrued expenses and other current
liabilities
166,922
205,911
Total current
liabilities
566,824
893,231
LONG-TERM LIABILITIES:
Convertible senior notes, net
638,703
627,381
Warranty obligations
321,618
335,197
Deferred revenues
222,557
214,607
Finance lease liabilities
39,244
41,892
Operating lease liabilities
36,838
45,070
Other long-term liabilities
16,241
18,444
Total
long-term liabilities
1,275,201
1,282,591
COMMITMENTS AND CONTINGENT LIABILITIES
STOCKHOLDERS’ EQUITY:
Common stock of $0.0001 par value -
Authorized: 125,000,000 shares; issued: 57,705,386 shares at June
30, 2024 and 57,123,437 shares at December 31, 2023; outstanding:
56,952,022 shares at June 30, 2024 and 57,123,437 shares at
December 31, 2023.
6
6
Additional paid-in capital
1,744,411
1,680,622
Treasury stock, at cost; 753,364 shares
held
(50,315
)
—
Accumulated other comprehensive loss
(77,950
)
(46,885
)
Retained earnings
490,037
778,166
Total
stockholders’ equity
2,106,189
2,411,909
Total
liabilities and stockholders’ equity
$
3,948,214
$
4,587,731
SOLAREDGE TECHNOLOGIES
INC.
CONDENSED CONSOLIDATED
STATEMENTS OF CASH FLOWS
(in thousands, except per share
data)
Six Months Ended
June 30,
2024
2023
Cash flows from
operating activities:
Net income (loss)
$
(288,129
)
$
257,888
Adjustments to reconcile net income (loss)
to net cash provided by (used in) operating activities:
Depreciation and amortization
30,430
26,725
Stock-based compensation expenses
76,177
78,200
Deferred income taxes, net
(50,843
)
(7,636
)
Gain from repurchasing of convertible
notes
(15,455
)
—
Loss (gain) from exchange rate
fluctuations
10,499
(23,214
)
Other items
3,340
4,783
Changes in assets and liabilities:
Trade receivables, net
317,574
(235,086
)
Inventories, net
(58,764
)
(246,193
)
Prepaid expenses and other assets
2,486
(33,285
)
Right-of-use assets
11,392
8,004
Trade payables, net
(245,612
)
(22,304
)
Warranty obligations
(27,178
)
103,524
Deferred revenues and customers
advances
(4,028
)
17,222
Operating lease liabilities
(11,042
)
(7,928
)
Accrued expenses and other liabilities,
net
(12,638
)
(1,488
)
Net cash used in operating activities
(261,791
)
(80,788
)
Cash flows from
investing activities:
Investment in available-for-sale
marketable securities
(155,334
)
(124,138
)
Proceeds from maturities of
available-for-sale marketable securities
480,727
84,006
Proceeds from sales of available-for-sale
marketable securities
51,918
2,807
Purchase of property, plant and
equipment
(48,535
)
(84,075
)
Business combinations, net of cash
acquired
(11,662
)
(16,653
)
Purchase of intangible assets
(10,000
)
(10,000
)
Disbursements for loans receivables
(37,500
)
—
Investment in privately-held companies
(25,650
)
(6,750
)
Other investing activities
(740
)
10,349
Net cash provided by (used in) investing
activities
243,224
(144,454
)
Cash flows from
financing activities:
Repurchase of common stock
(50,015
)
—
Partial repurchase of Notes 2025
(267,900
)
—
Proceeds from issuance of Notes 2029, net
of issuance costs
293,625
—
Capped call transactions related to Notes
2029
(25,230
)
—
Tax withholding in connection with
stock-based awards, net
75
(8,811
)
Other financing activities
(1,239
)
(1,330
)
Net cash used in financing activities
(50,684
)
(10,141
)
Effect of exchange rate differences on
cash and cash equivalents
(9,719
)
10,015
Decrease in cash and cash equivalents
(78,970
)
(225,368
)
Cash and cash equivalents at the beginning
of the period
338,468
783,112
Cash and cash equivalents at the end of
the period
$
259,498
$
557,744
SOLAREDGE TECHNOLOGIES
INC.
RECONCILIATION OF NON-GAAP
FINANCIAL MEASURES (Unaudited)
(in thousands, except per share
data and percentages)
Three months ended
Year ended
June 30, 2024
March 31, 2024
December 31, 2023
September 30, 2023
June 30, 2023
December 31, 2023
December 31, 2022
December 31, 2021
Gross profit (loss) (GAAP)
$
(10,969
)
$
(26,187
)
$
(56,425
)
$
142,817
$
317,305
$
703,823
$
844,648
$
629,318
Revenues from finance component
(246
)
(234
)
(230
)
(215
)
(202
)
(834
)
(614
)
(418
)
Discontinued operation
(757
)
(434
)
36,648
----
----
36,648
4,314
----
Stock-based compensation
6,218
5,968
5,468
5,882
5,923
23,200
21,818
18,743
Amortization of stock-based compensation
capitalized in inventories
362
197
343
441
316
1,100
----
----
Amortization and depreciation of acquired
asset
1,343
1,551
1,555
2,096
872
6,038
7,429
9,326
Restructuring charges
4,519
5,822
23,154
----
----
23,154
----
----
Gross profit (loss) (Non-GAAP)
$
470
$
(13,317
)
$
10,513
$
151,021
$
324,214
$
793,129
$
877,595
$
656,969
Gross margin (loss) (GAAP)
(4.1
)%
(12.8
)%
(17.9
)%
19.7
%
32.0
%
23.6
%
27.2
%
32.0
%
Revenues from finance component
0.0
(0.1
)
(0.1
)
0.0
0.0
0.0
0.0
0.0
Discontinued operation
(0.3
)
(0.2
)
11.6
----
----
1.2
0.1
----
Stock-based compensation
2.3
2.9
1.8
0.8
0.6
0.9
0.7
1.0
Amortization of stock-based compensation
capitalized in inventories
0.1
0.1
0.1
0.0
0.0
0.0
----
----
Amortization and depreciation of acquired
asset
0.5
0.8
0.5
0.3
0.1
0.2
0.2
0.5
Restructuring charges
1.7
2.8
7.3
----
----
0.8
----
----
Gross margin (loss) (Non-GAAP)
0.2
%
(6.5
)%
3.3
%
20.8
%
32.7
%
26.7
%
28.2
%
33.5
%
Operating expenses (GAAP)
$
149,213
$
147,518
$
181,156
$
159,543
$
166,947
$
663,618
$
678,528
$
422,179
Stock-based compensation - R&D
(17,639
)
(17,139
)
(15,982
)
(16,481
)
(17,272
)
(66,944
)
(63,211
)
(45,424
)
Stock-based compensation - S&M
(8,149
)
(7,911
)
(7,347
)
(7,739
)
(7,822
)
(30,987
)
(31,017
)
(22,834
)
Stock-based compensation - G&A
(6,565
)
(6,588
)
(6,133
)
(6,713
)
(7,948
)
(28,814
)
(29,493
)
(15,592
)
Amortization and depreciation of acquired
assets - R&D
(271
)
(270
)
(58
)
(329
)
(289
)
(989
)
(1,206
)
(530
)
Amortization and depreciation of acquired
assets - S&M
(467
)
(124
)
(190
)
(321
)
(235
)
(927
)
(822
)
(927
)
Amortization and depreciation of acquired
assets - G&A
(2
)
(2
)
(2
)
(4
)
17
(15
)
(21
)
(29
)
Discontinued operation
----
47
(388
)
----
----
(388
)
----
----
Restructuring charges
(366
)
(3,943
)
----
----
----
----
----
----
Assets impairment
----
(1,732
)
(30,790
)
----
----
(30,790
)
(119,141
)
(2,209
)
Gain (loss) from assets sales and
disposal
(951
)
(1,058
)
(172
)
----
----
1,262
2,603
976
Certain litigation and other
contingencies
----
399
(1,786
)
----
----
(1,786
)
----
----
Acquisition costs
----
(9
)
----
----
(135
)
(135
)
(350
)
----
Operating expenses (Non-GAAP)
$
114,803
$
109,188
$
118,308
$
127,956
$
133,263
$
503,105
$
435,870
$
335,610
SOLAREDGE TECHNOLOGIES
INC.
RECONCILIATION OF NON-GAAP
FINANCIAL MEASURES (Unaudited)
(in thousands, except per share
data and percentages)
Three months ended
Year ended
June 30, 2024
March 31, 2024
December 31, 2023
September 30, 2023
June 30, 2023
December 31, 2023
December 31, 2022
December 31, 2021
Operating income (loss) (GAAP)
$
(160,182
)
$
(173,705
)
$
(237,581
)
$
(16,726
)
$
150,358
$
40,205
$
166,120
$
207,139
Revenues from finance component
(246
)
(234
)
(230
)
(215
)
(202
)
(834
)
(614
)
(418
)
Discontinued operation
(757
)
(481
)
37,036
----
----
37,036
4,314
----
Stock-based compensation
38,571
37,606
34,930
36,815
38,965
149,945
145,539
102,593
Amortization of stock-based compensation
capitalized in inventories
362
197
343
441
316
1,100
----
----
Amortization and depreciation of acquired
assets
2,083
1,947
1,805
2,750
1,379
7,969
9,478
10,812
Restructuring charges
4,885
9,765
23,154
----
----
23,154
----
----
Assets impairment
----
1,732
30,790
----
----
30,790
119,141
2,209
Loss (gain) from assets sales and
disposal
951
1,058
172
----
----
(1,262
)
(2,603
)
(976
)
Certain litigation and other
contingencies
----
(399
)
1,786
----
----
1,786
----
----
Acquisition costs
----
9
----
----
135
135
350
----
Operating income (loss)
(Non-GAAP)
$
(114,333
)
$
(122,505
)
$
(107,795
)
$
23,065
$
190,951
$
290,024
$
441,725
$
321,359
Financial income (expense), net
(GAAP)
$
(865
)
$
(7,064
)
$
22,055
$
(7,901
)
$
3,384
$
41,212
$
3,750
$
(19,915
)
Non cash interest expense
3,636
3,536
3,422
3,284
3,105
12,703
9,954
8,674
Unrealized losses (gains)
----
----
----
----
----
----
119
(541
)
Currency fluctuation related to lease
standard
(1,523
)
(1,276
)
4,359
(2,788
)
(2,107
)
(3,055
)
(11,187
)
2,007
Financial income (expense), net
(Non-GAAP)
$
1,248
$
(4,804
)
$
29,836
$
(7,405
)
$
4,382
$
50,860
$
2,636
$
(9,775
)
Other income (loss) (GAAP)
$
18,551
----
$
291
$
(484
)
----
$
(318
)
$
7,285
----
Loss (gain) from sale of equity and debt
investments
(1,970
)
----
(291
)
484
----
193
(8,008
)
----
Loss (gain) from business combination
(1,125
)
----
----
----
----
----
----
----
Gain from the repurchase of convertible
notes
$
(15,456
)
----
----
----
----
----
----
----
Other loss (Non-GAAP)
----
----
----
----
----
$
(125
)
$
(723
)
----
Tax benefits (income taxes)
(GAAP)
$
12,245
$
23,754
$
53,202
$
(36,065
)
$
(34,232
)
$
(46,420
)
$
(83,376
)
$
(18,054
)
Uncertain tax positions
----
----
----
----
----
----
----
(9,007
)
Income tax adjustment
(357
)
(5,062
)
(27,699
)
(10,561
)
(3,735
)
(45,896
)
(9,067
)
(11,639
)
Tax benefits (income taxes)
(Non-GAAP)
$
11,888
$
18,692
$
25,503
$
(46,626
)
$
(37,967
)
$
(92,316
)
$
(92,443
)
$
(38,700
)
Equity method investments loss
(GAAP)
$
(567
)
$
(296
)
$
(350
)
----
----
$
(350
)
----
----
Loss from equity method investments
567
296
350
----
----
350
----
----
Equity method investments loss
(Non-GAAP)
----
----
----
----
----
----
----
----
SOLAREDGE TECHNOLOGIES
INC.
RECONCILIATION OF NON-GAAP
FINANCIAL MEASURES (Unaudited)
(in thousands, except per share
data and percentages)
Three months ended
Year ended
June 30, 2024
March 31, 2024
December 31, 2023
September 30, 2023
June 30, 2023
December 31, 2023
December 31, 2022
December 31, 2021
Net income (loss) (GAAP)
$
(130,818
)
$
(157,311
)
$
(162,383
)
$
(61,176
)
$
119,510
$
34,329
$
93,779
$
169,170
Revenues from finance component
(246
)
(234
)
(230
)
(215
)
(202
)
(834
)
(614
)
(418
)
Discontinued operation
(757
)
(481
)
37,036
----
----
37,036
4,314
----
Stock-based compensation
38,571
37,606
34,930
36,815
38,965
149,945
145,539
102,593
Amortization of stock-based compensation
capitalized in inventories
362
197
343
441
316
1,100
----
----
Amortization and depreciation of acquired
assets
2,083
1,947
1,805
2,750
1,379
7,969
9,478
10,812
Restructuring charges
4,885
9,765
23,154
----
----
23,154
----
----
Assets impairment
----
1,732
30,790
----
----
30,790
119,141
2,209
Loss (gain) from assets sales and
disposal
951
1,058
172
----
----
(1,262
)
(2,603
)
(976
)
Certain litigation and other
contingencies
----
(399
)
1,786
----
----
1,786
----
----
Acquisition costs
----
9
----
----
135
135
350
----
Non cash interest expense
3,636
3,536
3,422
3,284
3,105
12,703
9,954
8,674
Unrealized losses (gains)
----
----
----
----
----
----
119
(541
)
Currency fluctuation related to lease
standard
(1,523
)
(1,276
)
4,359
(2,788
)
(2,107
)
(3,055
)
(11,187
)
2,007
Loss (gain) from sale of equity and debt
investments
(1,970
)
----
(291
)
484
----
193
(8,008
)
----
Loss (gain) from business combination
(1,125
)
----
----
----
----
----
----
----
Gain from the repurchase of convertible
notes
(15,456
)
----
----
----
----
----
----
----
Uncertain tax positions
----
----
----
----
----
----
----
(9,007
)
Income tax adjustment
(357
)
(5,062
)
(27,699
)
(10,561
)
(3,735
)
(45,896
)
(9,067
)
(11,639
)
equity method adjustments
567
296
350
----
----
350
----
----
Net income (loss) (Non-GAAP)
$
(101,197
)
$
(108,617
)
$
(52,456
)
$
(30,966
)
$
157,366
$
248,443
$
351,195
$
272,884
SOLAREDGE TECHNOLOGIES
INC.
RECONCILIATION OF NON-GAAP
FINANCIAL MEASURES (Unaudited)
(in thousands, except per share
data and percentages)
Three months ended
Year ended
June 30, 2024
March 31, 2024
December 31, 2023
September 30, 2023
June 30, 2023
December 31, 2023
December 31, 2022
December 31, 2021
Net basic earnings (loss) per share
(GAAP)
$
(2.31
)
$
(2.75
)
$
(2.85
)
$
(1.08
)
$
2.12
$
0.61
$
1.70
$
3.24
Revenues from finance component
0.00
(0.01
)
(0.01
)
0.00
(0.01
)
(0.02
)
(0.01
)
(0.01
)
Discontinued operation
(0.02
)
(0.01
)
0.65
----
----
0.66
0.08
----
Stock-based compensation
0.69
0.66
0.62
0.65
0.70
2.65
2.64
1.97
Amortization of stock-based compensation
capitalized in inventories
0.00
0.01
0.00
0.00
0.00
0.02
----
----
Amortization and depreciation of acquired
assets
0.04
0.03
0.04
0.05
0.03
0.14
0.17
0.21
Restructuring charges
0.08
0.17
0.40
----
----
0.41
----
----
Assets impairment
----
0.03
0.54
----
----
0.54
2.17
0.05
Loss (gain) from assets sales and
disposal
0.02
0.02
0.01
----
----
(0.02
)
(0.05
)
(0.03
)
Certain litigation and other
contingencies
----
(0.01
)
0.03
----
----
0.03
----
----
Acquisition costs
----
0.00
----
----
0.00
0.00
0.01
----
Non cash interest expense
0.07
0.06
0.06
0.06
0.05
0.23
0.18
0.16
Unrealized losses (gains)
----
----
----
----
----
----
0.00
(0.01
)
Currency fluctuation related to lease
standard
(0.03
)
(0.02
)
0.07
(0.05
)
(0.03
)
(0.06
)
(0.21
)
0.04
Loss (gain) from sale of equity and debt
investments
(0.04
)
----
0.00
0.01
----
0.01
(0.14
)
----
Loss (gain) from business combination
(0.02
)
----
----
----
----
----
----
----
Gain from the repurchase of convertible
notes
(0.27
)
----
----
----
----
----
----
----
Uncertain tax positions
----
----
----
----
----
----
----
(0.17
)
Income tax adjustment
(0.01
)
(0.09
)
(0.49
)
(0.19
)
(0.07
)
(0.81
)
(0.16
)
(0.22
)
Equity method adjustments
0.01
0.01
0.01
----
----
0.00
----
----
Net basic earnings (loss) per share
(Non-GAAP)
$
(1.79
)
$
(1.90
)
$
(0.92
)
$
(0.55
)
$
2.79
$
4.39
$
6.38
$
5.23
SOLAREDGE TECHNOLOGIES
INC.
RECONCILIATION OF NON-GAAP
FINANCIAL MEASURES (Unaudited)
(in thousands, except per share
data and percentages)
Three months ended
Year ended
June 30, 2024
March 31, 2024
December 31, 2023
September 30, 2023
June 30, 2023
December 31, 2023
December 31, 2022
December 31, 2021
Net diluted earnings (loss) per share
(GAAP)
$
(2.31
)
$
(2.75
)
$
(2.85
)
$
(1.08
)
$
2.03
$
0.60
$
1.65
$
3.06
Revenues from finance component
0.00
(0.01
)
(0.01
)
0.00
(0.01
)
(0.01
)
(0.01
)
(0.01
)
Discontinued operation
(0.02
)
(0.01
)
0.65
----
----
0.64
0.08
----
Stock-based compensation
0.69
0.66
0.62
0.65
0.62
2.57
2.43
1.77
Amortization of stock-based compensation
capitalized in inventories
0.00
0.01
0.00
0.00
0.00
0.02
----
----
Amortization and depreciation of acquired
assets
0.04
0.03
0.04
0.05
0.03
0.14
0.16
0.19
Restructuring charges
0.08
0.17
0.40
----
----
0.40
----
----
Assets impairment
----
0.03
0.54
----
----
0.53
2.02
0.04
Loss (gain) from assets sales and
disposal
0.02
0.02
0.01
----
----
(0.02
)
(0.04
)
(0.02
)
Certain litigation and other
contingencies
----
(0.01
)
0.03
----
----
(0.16
)
----
----
Acquisition costs
----
0.00
----
----
0.00
0.01
0.00
----
Non cash interest expense
0.07
0.06
0.06
0.06
0.04
0.21
0.13
0.12
Unrealized losses (gains)
----
----
----
----
----
----
0.00
(0.01
)
Currency fluctuation related to lease
standard
(0.03
)
(0.02
)
0.07
(0.05
)
(0.03
)
(0.05
)
(0.19
)
0.03
Loss (gain) from sale of equity and debt
investments
(0.04
)
----
0.00
0.01
----
0.00
(0.13
)
----
Loss (gain) from business combination
(0.02
)
----
----
----
----
----
----
----
Gain from the repurchase of convertible
notes
(0.27
)
----
----
----
----
----
----
----
Uncertain tax positions
----
----
----
----
----
----
----
(0.16
)
Income tax adjustment
(0.01
)
(0.09
)
(0.49
)
(0.19
)
(0.06
)
(0.76
)
(0.15
)
(0.20
)
Equity method adjustments
0.01
0.01
0.01
----
----
0.00
----
----
Net diluted earnings (loss) per share
(Non-GAAP)
$
(1.79
)
$
(1.90
)
$
(0.93
)
$
(0.55
)
$
2.62
$
4.12
$
5.95
$
4.81
Number of shares used in computing net
diluted earnings (loss) per share (GAAP)
56,687,006
57,140,126
56,916,831
56,671,504
59,183,666
57,237,518
55,087,770
55,971,030
Stock-based compensation
----
----
----
----
986,527
725,859
963,373
773,636
Notes due 2025
----
----
----
----
----
2,276,818
----
----
Number of shares used in computing net
diluted earnings (loss) per share (Non-GAAP)
56,687,006
57,140,126
56,916,831
56,671,504
60,170,193
60,240,195
56,051,143
56,744,666
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240807308630/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
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