February 20, 2024

SolarEdge Announces Fourth Quarter 2023 and Full Year 2023 Financial Results

MILPITAS, Calif.--(BUSINESS WIRE)--Feb. 20, 2024-- SolarEdge Technologies, Inc. (Nasdaq: SEDG), a global leader in smart energy technology, today announced its financial results for the fourth quarter ended December 31, 2023 and full year ended December 31, 2023.

Fourth Quarter 2023 Highlights

  • Revenues of $316.0 million
  • Revenues from solar segment of $282.4 million
  • GAAP gross margin of negative 17.9%
  • Non-GAAP gross margin1 of 3.3%
  • Gross margin from solar segment of 4.0%
  • GAAP operating loss of $237.6 million
  • Non-GAAP operating loss1 of $107.8 million
  • GAAP net loss of $162.4 million
  • Non-GAAP net loss1 of $52.5 million
  • GAAP net loss per share (“EPS”) of $2.85
  • Non-GAAP net loss per share1 of $0.92
  • 901 Megawatts (AC) of inverters shipped
  • 133 MWh of batteries shipped

Full Year 2023 Highlights

  • Revenues of $3.0 billion
  • Revenues from solar segment of $2.8 billion
  • GAAP gross margin of 23.6%
  • Non-GAAP gross margin1 of 26.7%
  • Gross margin from solar segment of 29.2%
  • GAAP operating income of $40.2 million
  • Non-GAAP operating income1 of $290.0 million
  • GAAP net income of $34.3 million
  • Non-GAAP net income1 of $248.4 million
  • GAAP net diluted earnings per share (“EPS”) of $0.60
  • Non-GAAP net diluted earnings per share1 of $4.12
  • 12.6 Gigawatts (AC) of inverters shipped
  • 744 MWh of batteries shipped

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.

“Despite the challenges we faced in the second half of 2023, we concluded the year with $3.0 billion in revenue, just below 2022 levels,” said Zvi Lando, Chief Executive Officer of SolarEdge. “The first half of 2023 included record installations and expectations for continued growth, with a shift in the second half of the year to a weaker market due to higher interest rates and lower power prices, which resulted in an inventory buildup that slowed our shipments. Nevertheless, we believe we are well positioned for the next growth cycle in our industry due to our expanding product portfolio as well as the operational and cost reduction measures we have taken.”

Fourth Quarter 2023 Summary

The Company reported revenues of $316.0 million, down 56% from $725.3 million in the prior quarter and down 65% from $890.7 million in the same quarter last year.

Revenues from the solar segment were $282.4 million, down 58% from $676.9 million in the prior quarter and down 66% from $837.0 million in the same quarter last year.

GAAP gross margin was negative 17.9%, compared to 19.7% in the prior quarter and compared to 29.3% in the same quarter last year.

Non-GAAP gross margin1 was 3.3%, compared to 20.8% in the prior quarter and compared to 30.2% in the same quarter last year.

Gross margin from the solar segment was 4.0%, compared to 24.0% in the prior quarter and compared to 32.4% in the same quarter last year.

GAAP operating expenses were $181.2 million, up 14% from $159.5 million in the prior quarter and down 32% from $266.2 million in the same quarter last year.

Non-GAAP operating expenses1 were $118.3 million, down 8% from $128.0 million in the prior quarter and down 1% from $119.0 million in the same quarter last year.

GAAP operating loss was $237.6 million, compared to a GAAP operating loss of $16.8 million in the prior quarter and compared to GAAP operating loss of $5.2 million in the same quarter last year.

Non-GAAP operating loss1 was $107.8 million, compared to Non-GAAP operating income of $23.1 million in the prior quarter and compared to Non-GAAP operating income $149.6 million in the same quarter last year.

GAAP net loss was $162.4 million, compared to a GAAP net loss of $61.2 million in the prior quarter and compared to a GAAP net income of $20.8 million in the same quarter last year.

Non-GAAP net loss1 was $52.5 million, compared to a Non-GAAP net loss of $31.0 million in the prior quarter and compared to a Non-GAAP net income of $171.5 million in the same quarter last year.

GAAP net loss per share was $2.85, compared to a GAAP net loss per share of $1.08 in the prior quarter and compared to a GAAP net diluted EPS of $0.36 in the same quarter last year.

Non-GAAP net loss per share1 was $0.92, compared to a Non-GAAP net loss per share of $0.55 in the prior quarter and compared to a Non-GAAP net diluted EPS of $2.86 in the same quarter last year.

Cash used in operating activities was $139.9 million, compared with $40.6 million generated from operating activities in the prior quarter and $111.3 million generated from operating activities in the same quarter last year.

As of December 31, 2023, cash, cash equivalents, bank deposits, restricted bank deposits and marketable securities totaled $634.7 million, net of debt, compared to $831.4 million on September 30, 2023.

Full Year 2023 Summary

Total revenues of $3.0 billion, down 4% from $3.1 billion in the prior year.

Revenues from the solar segment were $2.8 billion, down 4% from $2.9 billion in the prior year.

GAAP gross margin was 23.6% compared to 27.2% in the prior year.

Non-GAAP gross margin1 was 26.7%, compared to 28.2% in the prior year.

Gross margin from the solar segment was 29.2%, compared to 29.8% in the prior year.

GAAP operating income was $40.2 million, down 75% from GAAP operating income of $166.1 million in the prior year.

Non-GAAP operating income1 was $290.0 million, down 34% from Non-GAAP operating income of $441.7 million in the prior year.

GAAP net income was $34.3 million, down 63% from GAAP net income of $93.8 million in the prior year.

Non-GAAP net income1 was $248.4 million, down 29% from Non-GAAP net income of $351.2 million in the prior year.

GAAP net diluted EPS was $0.60, down 64% from GAAP net diluted EPS of $1.65 in the prior year.

Non-GAAP net diluted EPS1 was $4.12, down 31% from Non-GAAP net diluted EPS of $5.95 in the prior year.

Cash used in operating activities was $180.1 million, compared with $31.3 million generated from operating activities in the prior year.

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 First Quarter 2024

The Company also provides guidance for the first quarter ending March 31, 2024 as follows:

  • Revenues to be within the range of $175 million to $215 million
  • Non-GAAP gross margin* expected to be within the range of negative 3% to positive 1%, including approximately 850 basis points of net IRA manufacturing tax credit
  • Non-GAAP operating expenses* to be within the range of $122 million to $130 million
  • Revenues from the solar segment to be within the range of $160 million to $200 million
  • Gross margin from the solar segment expected to be within the range of 1% to 5% including approximately 900 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 fourth quarter ended December 31, 2023 and full year ended December 31, 2023 at 4:30 p.m. ET on Tuesday, February 20, 2024. The call will be available, live, to interested parties by dialing 800-579-2543. For international callers, please dial +1 785-424-1789. 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

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 gross margin, non-GAAP net income (loss), non-GAAP operating expenses, and non-GAAP net diluted 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

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; 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 various conflicts; 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; 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; 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; 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 February 20, 2024. 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
December 31,

 

Year Ended
December 31,

 

 

 

2023

 

 

 

2022

 

 

 

2023

 

 

 

2022

 

 

 

Unaudited

 

 

 

 

Revenues

 

$

316,044

 

 

$

890,702

 

 

$

2,976,528

 

 

$

3,110,279

 

Cost of revenues

 

 

372,469

 

 

 

629,655

 

 

 

2,272,705

 

 

 

2,265,631

 

Gross profit (loss)

 

 

(56,425

)

 

 

261,047

 

 

 

703,823

 

 

 

844,648

 

Operating expenses:

 

 

 

 

 

 

 

 

Research and development

 

 

75,001

 

 

 

78,959

 

 

 

321,482

 

 

 

289,814

 

Sales and marketing

 

 

38,779

 

 

 

42,663

 

 

 

164,318

 

 

 

159,680

 

General and administrative

 

 

34,628

 

 

 

30,013

 

 

 

146,504

 

 

 

112,496

 

Goodwill impairment

 

 

 

 

 

90,104

 

 

 

 

 

 

90,104

 

Other operating expenses, net

 

 

32,748

 

 

 

24,471

 

 

 

31,314

 

 

 

26,434

 

Total operating expenses

 

 

181,156

 

 

 

266,210

 

 

 

663,618

 

 

 

678,528

 

Operating income (loss)

 

 

(237,581

)

 

 

(5,163

)

 

 

40,205

 

 

 

166,120

 

Financial income, net

 

 

22,055

 

 

 

55,812

 

 

 

41,212

 

 

 

3,750

 

Other income (loss)

 

 

291

 

 

 

475

 

 

 

(318

)

 

 

7,285

 

Income (loss) before income taxes

 

 

(215,235

)

 

 

51,124

 

 

 

81,099

 

 

 

177,155

 

Income tax benefit (expenses)

 

 

53,202

 

 

 

(30,295

)

 

 

(46,420

)

 

 

(83,376

)

Net loss from equity method investments

 

 

(350

)

 

 

 

 

 

(350

)

 

 

 

Net income (loss)

 

$

(162,383

)

 

$

20,829

 

 

$

34,329

 

 

$

93,779

 

SOLAREDGE TECHNOLOGIES INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(in thousands, except per share data)

 

 

 

December 31,

 

 

2023

 

 

 

2022

 

ASSETS

 

 

 

CURRENT ASSETS:

 

 

 

Cash and cash equivalents

$

338,468

 

 

$

783,112

 

Marketable securities

 

521,570

 

 

 

241,117

 

Trade receivables, net of allowances of $16,400 and $3,202, respectively

 

622,425

 

 

 

905,146

 

Inventories, net

 

1,443,449

 

 

 

729,201

 

Prepaid expenses and other current assets

 

378,394

 

 

 

241,082

 

Total current assets

 

3,304,306

 

 

 

2,899,658

 

LONG-TERM ASSETS:

 

 

 

Marketable securities

 

407,825

 

 

 

645,491

 

Deferred tax assets, net

 

80,912

 

 

 

44,153

 

Property, plant and equipment, net

 

614,579

 

 

 

543,969

 

Operating lease right-of-use assets, net

 

64,167

 

 

 

62,754

 

Intangible assets, net

 

35,345

 

 

 

19,929

 

Goodwill

 

42,996

 

 

 

31,189

 

Other long-term assets

 

37,601

 

 

 

18,806

 

Total long-term assets

 

1,283,425

 

 

 

1,366,291

 

Total assets

 

4,587,731

 

 

 

4,265,949

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

 

CURRENT LIABILITIES:

 

 

 

Trade payables, net

$

386,471

 

 

$

459,831

 

Employees and payroll accruals

 

76,966

 

 

 

85,158

 

Warranty obligations

 

183,047

 

 

 

103,975

 

Deferred revenues and customers advances

 

40,836

 

 

 

26,641

 

Accrued expenses and other current liabilities

 

205,911

 

 

 

214,112

 

Total current liabilities

 

893,231

 

 

 

889,717

 

LONG-TERM LIABILITIES:

 

 

 

Convertible senior notes, net

 

627,381

 

 

 

624,451

 

Warranty obligations

 

335,197

 

 

 

281,082

 

Deferred revenues

 

214,607

 

 

 

186,936

 

Finance lease liabilities

 

41,892

 

 

 

45,385

 

Operating lease liabilities

 

45,070

 

 

 

46,256

 

Other long-term liabilities

 

18,444

 

 

 

15,756

 

Total long-term liabilities

 

1,282,591

 

 

 

1,199,866

 

COMMITMENTS AND CONTINGENT LIABILITIES

 

 

 

STOCKHOLDERS’ EQUITY:

 

 

 

Common stock of $0.0001 par value - Authorized: 125,000,000 shares as of December 31, 2023 and December 31, 2022; issued and outstanding: 57,123,437 and 56,133,404 shares as of December 31, 2023 and December 31, 2022, respectively

 

6

 

 

 

6

 

Additional paid-in capital

 

1,680,622

 

 

 

1,505,632

 

Accumulated other comprehensive loss

 

(46,885

)

 

 

(73,109

)

Retained earnings

 

778,166

 

 

 

743,837

 

Total stockholders’ equity

 

2,411,909

 

 

 

2,176,366

 

Total liabilities and stockholders’ equity

$

4,587,731

 

 

$

4,265,949

 

SOLAREDGE TECHNOLOGIES INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands, except per share data)

 

 

 

 

 

Year ended December 31,

 

 

 

2023

 

 

 

2022

 

Cash flows from operating activities:

 

 

 

 

Net income

 

$

34,329

 

 

$

93,779

 

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

 

 

 

 

Depreciation and amortization

 

 

57,196

 

 

 

49,676

 

Loss (gain) from exchange rate fluctuations

 

 

(26,878

)

 

 

9,527

 

Stock-based compensation expenses

 

 

149,945

 

 

 

145,539

 

Impairment of goodwill and long-lived assets

 

 

30,790

 

 

 

119,141

 

Deferred income taxes, net

 

 

(43,071

)

 

 

(11,055

)

Other items

 

 

8,164

 

 

 

4,382

 

Changes in assets and liabilities:

 

 

 

 

Inventories, net

 

 

(690,854

)

 

 

(341,085

)

Prepaid expenses and other assets

 

 

(91,523

)

 

 

(64,991

)

Trade receivables, net

 

 

296,429

 

 

 

(457,610

)

Trade payables, net

 

 

(67,795

)

 

 

194,524

 

Employees and payroll accruals

 

 

21,419

 

 

 

26,238

 

Warranty obligations

 

 

133,090

 

 

 

120,169

 

Deferred revenues and customers advances

 

 

39,632

 

 

 

44,376

 

Accrued expenses and other liabilities, net

 

 

(30,986

)

 

 

98,674

 

Net cash provided by (used in) operating activities

 

 

(180,113

)

 

 

31,284

 

Cash flows from investing activities:

 

 

 

 

Investment in available-for-sale marketable securities

 

 

(296,396

)

 

 

(507,171

)

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

 

 

280,189

 

 

 

231,210

 

Purchase of property, plant and equipment

 

 

(170,523

)

 

 

(169,341

)

Disbursements for loans receivables

 

 

(58,000

)

 

 

 

Business combinations, net of cash acquired

 

 

(16,653

)

 

 

 

Purchase of intangible assets

 

 

(10,600

)

 

 

 

Investment in privately-held companies

 

 

(8,000

)

 

 

 

Proceeds from governmental grant

 

 

6,794

 

 

 

4,479

 

Proceeds from sale of a privately-held company

 

 

1,313

 

 

 

24,362

 

Other investing activities

 

 

2,982

 

 

 

(583

)

Net cash used in investing activities

 

 

(268,894

)

 

 

(417,044

)

Cash flows from financing activities:

 

 

 

 

Tax withholding in connection with stock-based awards, net

 

 

(9,259

)

 

 

3,023

 

Payments of finance lease liability

 

 

(2,794

)

 

 

(2,834

)

Proceeds from secondary public offering, net of issuance costs

 

 

 

 

 

650,526

 

Repayment of bank loans

 

 

(129

)

 

 

(138

)

Other financing activities

 

 

226

 

 

 

4,030

 

Net cash provided by (used in) financing activities

 

 

(11,956

)

 

 

654,607

 

Increase (decrease) in cash and cash equivalents

 

 

(460,963

)

 

 

268,847

 

Cash and cash equivalents at the beginning of the period

 

 

783,112

 

 

 

530,089

 

Effect of exchange rate differences on cash and cash equivalents

 

 

16,319

 

 

 

(15,824

)

Cash and cash equivalents at the end of the period

 

$

338,468

 

 

$

783,112

 

SOLAREDGE TECHNOLOGIES INC.

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (Unaudited)

(in thousands, except per share data and percentages)

 

 

Reconciliation of GAAP to Non-GAAP

 

Three months ended

 

Year ended

 

December 31, 2023

 

September 30, 2023

 

June 30, 2023

 

March 31, 2023

 

December 31, 2022

 

December 31, 2023

 

December 31, 2022

 

December 31, 2021

Gross profit (GAAP)

$

(56,425

)

 

$

142,817

 

 

$

317,305

 

 

$

300,126

 

 

$

261,047

 

 

$

703,823

 

 

$

844,648

 

 

$

629,318

 

Revenues from finance component

 

(230

)

 

 

(215

)

 

 

(202

)

 

 

(187

)

 

 

(174

)

 

 

(834

)

 

 

(614

)

 

 

(418

)

Discontinued operation

 

36,648

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

36,648

 

 

 

4,314

 

 

 

 

Stock-based compensation

 

5,468

 

 

 

5,882

 

 

 

5,923

 

 

 

5,927

 

 

 

6,810

 

 

 

23,200

 

 

 

21,818

 

 

 

18,743

 

Amortization of stock-based compensation capitalized in inventories

 

343

 

 

 

441

 

 

 

316

 

 

 

 

 

 

 

 

 

1,100

 

 

 

 

 

 

 

Amortization and depreciation of acquired asset

 

1,555

 

 

 

2,096

 

 

 

872

 

 

 

1,515

 

 

 

961

 

 

 

6,038

 

 

 

7,429

 

 

 

9,326

 

Restructuring charges

 

23,154

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

23,154

 

 

 

 

 

 

 

Gross profit (Non-GAAP)

$

10,513

 

 

$

151,021

 

 

$

324,214

 

 

$

307,381

 

 

$

268,644

 

 

$

793,129

 

 

$

877,595

 

 

$

656,969

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross margin (GAAP)

 

(17.9

) %

 

 

19.7

%

 

 

32.0

%

 

 

31.8

%

 

 

29.3

%

 

 

23.6

%

 

 

27.2

%

 

 

32.0

%

Revenues from finance component

 

(0.1

)

 

 

0.0

 

 

 

0.0

 

 

 

0.0

 

 

 

0.0

 

 

 

0.0

 

 

 

0.0

 

 

 

0.0

 

Discontinued operation

 

11.6

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1.2

 

 

 

0.1

 

 

 

 

Stock-based compensation

 

1.8

 

 

 

0.8

 

 

 

0.6

 

 

 

0.6

 

 

 

0.8

 

 

 

0.9

 

 

 

0.7

 

 

 

1.0

 

Amortization of stock-based compensation capitalized in inventories

 

0.1

 

 

 

0.0

 

 

 

0.0

 

 

 

 

 

 

 

 

 

0.0

 

 

 

 

 

 

 

Amortization and depreciation of acquired asset

 

0.5

 

 

 

0.3

 

 

 

0.1

 

 

 

0.2

 

 

 

0.1

 

 

 

0.2

 

 

 

0.2

 

 

 

0.5

 

Restructuring charges

 

7.3

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

0.8

 

 

 

 

 

 

 

Gross margin (Non-GAAP)

 

3.3

%

 

 

20.8

%

 

 

32.7

%

 

 

32.6

%

 

 

30.2

%

 

 

26.7

%

 

 

28.2

%

 

 

33.5

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating expenses (GAAP)

$

181,156

 

 

$

159,543

 

 

$

166,947

 

 

$

155,972

 

 

$

266,210

 

 

$

663,618

 

 

$

678,528

 

 

$

422,179

 

Stock-based compensation - R&D

 

(15,982

)

 

 

(16,481

)

 

 

(17,272

)

 

 

(17,209

)

 

 

(16,854

)

 

 

(66,944

)

 

 

(63,211

)

 

 

(45,424

)

Stock-based compensation - S&M

 

(7,347

)

 

 

(7,739

)

 

 

(7,822

)

 

 

(8,079

)

 

 

(7,928

)

 

 

(30,987

)

 

 

(31,017

)

 

 

(22,834

)

Stock-based compensation - G&A

 

(6,133

)

 

 

(6,713

)

 

 

(7,948

)

 

 

(8,020

)

 

 

(7,015

)

 

 

(28,814

)

 

 

(29,493

)

 

 

(15,592

)

Amortization and depreciation of acquired assets - R&D

 

(58

)

 

 

(329

)

 

 

(289

)

 

 

(313

)

 

 

(301

)

 

 

(989

)

 

 

(1,206

)

 

 

(530

)

Amortization and depreciation of acquired assets - S&M

 

(190

)

 

 

(321

)

 

 

(235

)

 

 

(181

)

 

 

(173

)

 

 

(927

)

 

 

(822

)

 

 

(927

)

Amortization and depreciation of acquired assets - G&A

 

(2

)

 

 

(4

)

 

 

17

 

 

 

(26

)

 

 

(4

)

 

 

(15

)

 

 

(21

)

 

 

(29

)

Discontinued operation

 

(388

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(388

)

 

 

 

 

 

 

Assets impairment

 

(30,790

)

 

 

 

 

 

 

 

 

 

 

 

(114,473

)

 

 

(30,790

)

 

 

(119,141

)

 

 

(2,209

)

Gain (loss) from assets sales and disposal

 

(172

)

 

 

 

 

 

 

 

 

1,434

 

 

 

(102

)

 

 

1,262

 

 

 

2,603

 

 

 

976

 

Certain litigation and other contingencies

 

(1,786

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1,786

)

 

 

 

 

 

 

Acquisition costs

 

 

 

 

 

 

 

(135

)

 

 

 

 

 

(350

)

 

 

(135

)

 

 

(350

)

 

 

 

Operating expenses (Non-GAAP)

$

118,308

 

 

$

127,956

 

 

$

133,263

 

 

$

123,578

 

 

$

119,010

 

 

$

503,105

 

 

$

435,870

 

 

$

335,610

 

SOLAREDGE TECHNOLOGIES INC.

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (Unaudited)

(in thousands, except per share data and percentages)

 

 

Reconciliation of GAAP to Non-GAAP

 

Three months ended

 

Year ended

 

December 31, 2023

 

September 30, 2023

 

June 30, 2023

 

March 31, 2023

 

December 31, 2022

 

December 31, 2023

 

December 31, 2022

 

December 31, 2021

Operating income (loss) (GAAP)

$

(237,581

)

 

$

(16,726

)

 

$

150,358

 

 

$

144,154

 

 

$

(5,163

)

 

$

40,205

 

 

$

166,120

 

 

$

207,139

 

Revenues from finance component

 

(230

)

 

 

(215

)

 

 

(202

)

 

 

(187

)

 

 

(174

)

 

 

(834

)

 

 

(614

)

 

 

(418

)

Discontinued operation

 

37,036

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

37,036

 

 

 

4,314

 

 

 

 

Stock-based compensation

 

34,930

 

 

 

36,815

 

 

 

38,965

 

 

 

39,235

 

 

 

38,607

 

 

 

149,945

 

 

 

145,539

 

 

 

102,593

 

Amortization of stock-based compensation capitalized in inventories

 

343

 

 

 

441

 

 

 

316

 

 

 

 

 

 

 

 

 

1,100

 

 

 

 

 

 

 

Amortization and depreciation of acquired assets

 

1,805

 

 

 

2,750

 

 

 

1,379

 

 

 

2,035

 

 

 

1,439

 

 

 

7,969

 

 

 

9,478

 

 

 

10,812

 

Restructuring charges

 

23,154

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

23,154

 

 

 

 

 

 

 

Assets impairment

 

30,790

 

 

 

 

 

 

 

 

 

 

 

 

114,473

 

 

 

30,790

 

 

 

119,141

 

 

 

2,209

 

Loss (gain) from assets sales and disposal

 

172

 

 

 

 

 

 

 

 

 

(1,434

)

 

 

102

 

 

 

(1,262

)

 

 

(2,603

)

 

 

(976

)

Certain litigation and other contingencies

 

1,786

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1,786

 

 

 

 

 

 

 

Acquisition costs

 

 

 

 

 

 

 

135

 

 

 

 

 

 

350

 

 

 

135

 

 

 

350

 

 

 

 

Operating income (Non-GAAP)

$

(107,795

)

 

$

23,065

 

 

$

190,951

 

 

$

183,803

 

 

$

149,634

 

 

$

290,024

 

 

$

441,725

 

 

$

321,359

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Financial income (expense), net (GAAP)

$

22,055

 

 

$

(7,901

)

 

$

3,384

 

 

$

23,674

 

 

$

55,812

 

 

$

41,212

 

 

$

3,750

 

 

$

(19,915

)

Non cash interest expense

 

3,422

 

 

 

3,284

 

 

 

3,105

 

 

 

2,892

 

 

 

2,685

 

 

 

12,703

 

 

 

9,954

 

 

 

8,674

 

Unrealized losses (gains)

 

 

 

 

 

 

 

 

 

 

 

 

 

119

 

 

 

 

 

 

119

 

 

 

(541

)

Currency fluctuation related to lease standard

 

4,359

 

 

 

(2,788

)

 

 

(2,107

)

 

 

(2,519

)

 

 

749

 

 

 

(3,055

)

 

 

(11,187

)

 

 

2,007

 

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

$

29,836

 

 

$

(7,405

)

 

$

4,382

 

 

$

24,047

 

 

$

59,365

 

 

$

50,860

 

 

$

2,636

 

 

$

(9,775

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other income (loss) (GAAP)

$

291

 

 

$

(484

)

 

$

 

 

$

(125

)

 

$

475

 

 

$

(318

)

 

$

7,285

 

 

$

 

Loss (gain) from sale of investments

 

(291

)

 

 

484

 

 

 

 

 

 

 

 

 

(475

)

 

 

193

 

 

 

(8,008

)

 

 

 

Other income (loss) (Non-GAAP)

$

 

 

$

 

 

$

 

 

$

(125

)

 

$

 

 

$

(125

)

 

$

(723

)

 

$

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income tax benefit (expense) (GAAP)

$

53,202

 

 

$

(36,065

)

 

$

(34,232

)

 

$

(29,325

)

 

$

(30,295

)

 

$

(46,420

)

 

$

(83,376

)

 

$

(18,054

)

Uncertain tax positions

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(9,007

)

Income tax adjustment

 

(27,699

)

 

 

(10,561

)

 

 

(3,735

)

 

 

(3,901

)

 

 

(7,186

)

 

 

(45,896

)

 

 

(9,067

)

 

 

(11,639

)

Income tax benefit (expense) (Non-GAAP)

$

25,503

 

 

$

(46,626

)

 

$

(37,967

)

 

$

(33,226

)

 

$

(37,481

)

 

$

(92,316

)

 

$

(92,443

)

 

$

(38,700

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity method investments income (loss) (GAAP)

$

(350

)

 

$

 

 

$

 

 

$

 

 

$

 

 

$

(350

)

 

$

 

 

$

 

Loss from equity method investments

 

350

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

350

 

 

 

 

 

 

 

Equity method investments income (loss) (Non-GAAP)

$

 

 

$

 

 

$

 

 

$

 

 

$

 

 

$

 

 

$

 

 

$

 

SOLAREDGE TECHNOLOGIES INC.

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (Unaudited)

(in thousands, except per share data and percentages)

 

 

Reconciliation of GAAP to Non-GAAP Net income (loss)

 

Three months ended

 

Year ended

 

December 31, 2023

 

September 30, 2023

 

June 30, 2023

 

March 31, 2023

 

December 31, 2022

 

December 31, 2023

 

December 31, 2022

 

December 31, 2021

Net income (loss) (GAAP)

$

(162,383

)

 

$

(61,176

)

 

$

119,510

 

 

$

138,378

 

 

$

20,829

 

 

$

34,329

 

 

$

93,779

 

 

$

169,170

 

Revenues from finance component

 

(230

)

 

 

(215

)

 

 

(202

)

 

 

(187

)

 

 

(174

)

 

 

(834

)

 

 

(614

)

 

 

(418

)

Discontinued operation

 

37,036

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

37,036

 

 

 

4,314

 

 

 

 

Stock-based compensation

 

34,930

 

 

 

36,815

 

 

 

38,965

 

 

 

39,235

 

 

 

38,607

 

 

 

149,945

 

 

 

145,539

 

 

 

102,593

 

Amortization of stock-based compensation capitalized in inventories

 

343

 

 

 

441

 

 

 

316

 

 

 

 

 

 

 

 

 

1,100

 

 

 

 

 

 

 

Amortization and depreciation of acquired assets

 

1,805

 

 

 

2,750

 

 

 

1,379

 

 

 

2,035

 

 

 

1,439

 

 

 

7,969

 

 

 

9,478

 

 

 

10,812

 

Restructuring charges

 

23,154

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

23,154

 

 

 

 

 

 

 

Assets impairment

 

30,790

 

 

 

 

 

 

 

 

 

 

 

 

114,473

 

 

 

30,790

 

 

 

119,141

 

 

 

2,209

 

Loss (gain) from assets sales and disposal

 

172

 

 

 

 

 

 

 

 

 

(1,434

)

 

 

102

 

 

 

(1,262

)

 

 

(2,603

)

 

 

(976

)

Certain litigation and other contingencies

 

1,786

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1,786

 

 

 

 

 

 

 

Acquisition costs

 

 

 

 

 

 

 

135

 

 

 

 

 

 

350

 

 

 

135

 

 

 

350

 

 

 

 

Non cash interest expense

 

3,422

 

 

 

3,284

 

 

 

3,105

 

 

 

2,892

 

 

 

2,685

 

 

 

12,703

 

 

 

9,954

 

 

 

8,674

 

Unrealized losses (gains)

 

 

 

 

 

 

 

 

 

 

 

 

 

119

 

 

 

 

 

 

119

 

 

 

(541

)

Currency fluctuation related to lease standard

 

4,359

 

 

 

(2,788

)

 

 

(2,107

)

 

 

(2,519

)

 

 

749

 

 

 

(3,055

)

 

 

(11,187

)

 

 

2,007

 

Loss (gain) from sale of investments

 

(291

)

 

 

484

 

 

 

 

 

 

 

 

 

(475

)

 

 

193

 

 

 

(8,008

)

 

 

 

Uncertain tax positions

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(9,007

)

Income tax adjustment

 

(27,699

)

 

 

(10,561

)

 

 

(3,735

)

 

 

(3,901

)

 

 

(7,186

)

 

 

(45,896

)

 

 

(9,067

)

 

 

(11,639

)

equity method adjustments

 

350

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

350

 

 

 

 

 

 

 

Net income (loss) (Non-GAAP)

$

(52,456

)

 

$

(30,966

)

 

$

157,366

 

 

$

174,499

 

 

$

171,518

 

 

$

248,443

 

 

$

351,195

 

 

$

272,884

 

SOLAREDGE TECHNOLOGIES INC.

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (Unaudited)

(in thousands, except per share data and percentages)

 

 

Reconciliation of GAAP to Non-GAAP Net basic earnings (loss)

 

Three months ended

 

Year ended

 

December 31, 2023

 

September 30, 2023

 

June 30, 2023

 

March 31, 2023

 

December 31, 2022

 

December 31, 2023

 

December 31, 2022

 

December 31, 2021

Net basic earnings (loss) per share (GAAP)

(2.85

)

 

(1.08

)

 

2.12

 

 

2.46

 

 

0.37

 

 

0.61

 

 

1.70

 

 

3.24

 

Revenues from finance component

(0.01

)

 

0.00

 

 

(0.01

)

 

0.00

 

 

0.00

 

 

(0.02

)

 

(0.01

)

 

(0.01

)

Discontinued operation

0.65

 

 

 

 

 

 

 

 

 

 

0.66

 

 

0.08

 

 

 

Stock-based compensation

0.62

 

 

0.65

 

 

0.70

 

 

0.70

 

 

0.69

 

 

2.65

 

 

2.64

 

 

1.97

 

Amortization of stock-based compensation capitalized in

0.00

 

 

0.00

 

 

0.00

 

 

 

 

 

 

0.02

 

 

 

 

 

Amortization and depreciation of acquired assets

0.04

 

 

0.05

 

 

0.03

 

 

0.03

 

 

0.02

 

 

0.14

 

 

0.17

 

 

0.21

 

Restructuring charges

0.40

 

 

 

 

 

 

 

 

 

 

0.41

 

 

 

 

 

Assets impairment

0.54

 

 

 

 

 

 

 

 

2.05

 

 

0.54

 

 

2.17

 

 

0.05

 

Loss (gain) from assets sales and disposal

0.01

 

 

 

 

 

 

(0.02

)

 

 

 

(0.02

)

 

(0.02

)

 

(0.03

)

Certain litigation and other contingencies

0.03

 

 

 

 

 

 

 

 

 

 

0.03

 

 

 

 

 

Acquisition costs

 

 

 

 

0.00

 

 

 

 

0.01

 

 

 

 

(0.02

)

 

 

Non cash interest expense

0.06

 

 

0.06

 

 

0.05

 

 

0.05

 

 

0.05

 

 

0.23

 

 

0.18

 

 

0.16

 

Unrealized losses (gains)

 

 

 

 

 

 

 

 

(0.01

)

 

 

 

(0.01

)

 

(0.01

)

Currency fluctuation related to lease standard

0.07

 

 

(0.05

)

 

(0.03

)

 

(0.05

)

 

0.02

 

 

(0.06

)

 

(0.20

)

 

0.04

 

Loss (gain) from sale of investments

0.00

 

 

0.01

 

 

 

 

 

 

(0.01

)

 

0.01

 

 

(0.14

)

 

 

Uncertain tax positions

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(0.17

)

Income tax adjustment

(0.49

)

 

(0.19

)

 

(0.07

)

 

(0.07

)

 

(0.13

)

 

(0.81

)

 

(0.16

)

 

(0.22

)

equity method adjustments

0.01

 

 

 

 

 

 

 

 

 

 

0.00

 

 

 

 

 

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

(0.92

)

 

(0.55

)

 

2.79

 

 

3.10

 

 

3.06

 

 

4.39

 

 

6.38

 

 

5.23

 

SOLAREDGE TECHNOLOGIES INC.

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (Unaudited)

(in thousands, except per share data and percentages)

 

 

Reconciliation of GAAP to Non-GAAP Net diluted earnings (loss)

 

Three months ended

 

Year ended

 

December 31, 2023

 

September 30, 2023

 

June 30, 2023

 

March 31, 2023

 

December 31, 2022

 

December 31, 2023

 

December 31, 2022

 

December 31, 2021

Net diluted earnings (loss) per share (GAAP)

(2.85

)

 

(1.08

)

 

2.03

 

 

2.35

 

 

0.36

 

 

0.60

 

 

1.65

 

 

3.06

 

Revenues from finance component

(0.01

)

 

0.00

 

 

(0.01

)

 

(0.01

)

 

0.00

 

 

(0.01

)

 

(0.01

)

 

(0.01

)

Discontinued operation

0.65

 

 

 

 

 

 

 

 

 

 

0.64

 

 

0.08

 

 

 

Stock-based compensation

0.62

 

 

0.65

 

 

0.62

 

 

0.62

 

 

0.64

 

 

2.57

 

 

2.43

 

 

1.77

 

Amortization of stock-based compensation capitalized in inventories

0.00

 

 

0.00

 

 

0.00

 

 

 

 

 

 

0.02

 

 

 

 

 

Amortization and depreciation of acquired assets

0.04

 

 

0.05

 

 

0.03

 

 

0.03

 

 

0.02

 

 

0.14

 

 

0.16

 

 

0.19

 

Restructuring charges

0.40

 

 

 

 

 

 

 

 

 

 

0.40

 

 

 

 

 

Assets impairment

0.54

 

 

 

 

 

 

 

 

1.91

 

 

0.53

 

 

2.02

 

 

0.04

 

Loss (gain) from assets sales and disposal

0.01

 

 

 

 

 

 

(0.02

)

 

 

 

(0.02

)

 

(0.02

)

 

(0.02

)

Certain litigation and other contingencies

0.03

 

 

 

 

 

 

 

 

 

 

(0.16

)

 

 

 

 

Acquisition costs

 

 

 

 

0.00

 

 

 

 

0.01

 

 

0.01

 

 

(0.02

)

 

 

Non cash interest expense

0.06

 

 

0.06

 

 

0.04

 

 

0.04

 

 

0.03

 

 

0.21

 

 

0.13

 

 

0.12

 

Unrealized losses (gains)

 

 

 

 

 

 

 

 

0.00

 

 

 

 

0.00

 

 

(0.01

)

Currency fluctuation related to lease standard

0.07

 

 

(0.05

)

 

(0.03

)

 

(0.04

)

 

0.01

 

 

(0.05

)

 

(0.19

)

 

0.03

 

Loss (gain) from sale of investments

0.00

 

 

0.01

 

 

 

 

 

 

0.00

 

 

0.00

 

 

(0.13

)

 

 

Uncertain tax positions

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(0.16

)

Income tax adjustment

(0.49

)

 

(0.19

)

 

(0.06

)

 

(0.07

)

 

(0.12

)

 

(0.76

)

 

(0.15

)

 

(0.20

)

equity method adjustments

0.01

 

 

 

 

 

 

 

 

 

 

0.00

 

 

 

 

 

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

(0.92

)

 

(0.55

)

 

2.62

 

 

2.90

 

 

2.86

 

 

4.12

 

 

5.95

 

 

4.81

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

56,916,831

 

 

56,671,504

 

 

59,183,666

 

 

59,193,831

 

 

58,734,719

 

 

57,237,518

 

 

55,087,770

 

 

55,971,030

 

Stock-based compensation

 

 

 

 

986,527

 

 

939,571

 

 

1,237,266

 

 

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)

56,916,831

 

 

56,671,504

 

 

60,170,193

 

 

60,133,402

 

 

59,971,985

 

 

60,240,195

 

 

56,051,143

 

 

56,744,666

 

 

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

Source: SolarEdge Technologies, Inc.