Press Release Details

SolarEdge Announces Third Quarter 2022 Financial Results

November 7, 2022 at 4:02 PM EST

MILPITAS, Calif.--(BUSINESS WIRE)--Nov. 7, 2022-- SolarEdge Technologies, Inc. (Nasdaq: SEDG), a global leader in smart energy technology, today announced its financial results for the third quarter ended September 30, 2022.

Third Quarter 2022 Highlights

  • Record revenues of $836.7 million
  • Record revenues from solar segment of $788.6 million
  • GAAP gross margin of 26.5%
  • Non-GAAP gross margin of 27.3%
  • Gross margin from solar segment of 28.3%
  • Record GAAP operating profit of $84.4 million
  • Record non-GAAP operating profit of $120.2 million
  • GAAP net income of $24.7 million
  • Non-GAAP net income of $54.1 million
  • GAAP net diluted earnings per share (“EPS”) of $0.43
  • Non-GAAP net diluted EPS of $0.91
  • 2.7 Gigawatts (AC) of inverters shipped
  • 320.7 MWh of batteries shipped

“We are pleased with our third quarter results, setting new revenue and operating profit records. The results reflect extremely strong momentum in Europe where our revenues grew 90% compared to the same quarter last year,” said Zvi Lando, Chief Executive Officer of SolarEdge. “This quarter we increased production and were able to ship more units while increasing our operational efficiency and returning to a growth trajectory for our gross margins. We believe that the continued increase in manufacturing capacity in our existing manufacturing lines combined with our plans to establish a manufacturing footprint in the U.S. will allow us to capitalize on the strong demand we are experiencing globally.”

Third Quarter 2022 Summary

The Company reported record revenues of $836.7 million, up 15% from $727.8 million in the prior quarter and up 59% from $526.4 million in the same quarter last year.

Revenues from the solar segment were record $788.6 million, up 15% from $687.6 million in the prior quarter and up 65% from $476.8 million in the same quarter last year.

GAAP gross margin was 26.5%, up from 25.1% in the prior quarter and down from 32.8% in the same quarter last year.

Non-GAAP gross margin was 27.3%, up from 26.7% in the prior quarter and down from 34.0% in the same quarter last year.

Gross margin from the solar segment was 28.3%, up from 28.1% in the prior quarter and down from 36.6% in the same quarter last year.

GAAP operating expenses were $137.6 million, down 6% from $146.6 million in the prior quarter and up 30% from $106.1 million in the same quarter last year.

Non-GAAP operating expenses were $108.3 million, down 1% from $109.6 million in the prior quarter and up 29% from $83.8 million in the same quarter last year.

GAAP operating income was $84.4 million, up 134% from $36.0 million in the prior quarter and up 27% from $66.4 million in the same quarter last year.

Non-GAAP operating income was $120.2 million, up 42% from $84.7 million in the prior quarter and up 26% from $95.2 million in the same quarter last year.

GAAP net income was $24.7 million, up 64% from $15.1 million in the prior quarter and down 53% from $53.0 million in the same quarter last year.

Non-GAAP net income was $54.1 million, down 5% from $56.7 million in the prior quarter and down 34% from $82.1 million in the same quarter last year.

GAAP net diluted EPS was $0.43, up from $0.26 in the prior quarter and down from $0.96 in the same quarter last year.

Non-GAAP net diluted EPS was $0.91, down from $0.95 in the prior quarter and down from $1.45 in the same quarter last year.

Cash flow from operating activities was $5.6 million, down from $77.4 million in the prior quarter and down from $61.8 million in the same quarter last year.

As of September 30, 2022, cash, cash equivalents, bank deposits, restricted bank deposits and marketable securities totaled $937.6 million, net of debt, compared to $973.3 million on June 30, 2022.

Outlook for the Fourth Quarter 2022

The Company also provides guidance for the fourth quarter ending December 31, 2022 as follows:

  • Revenues to be within the range of $855 million to $885 million
  • Non-GAAP gross margin expected to be within the range of 27% to 30%
  • Non-GAAP operating profit to be within the range of $115 million to $135 million
  • Revenues from the solar segment to be within the range of $810 million to $840 million
  • Gross margin from the solar segment expected to be within the range of 28% to 31%

Conference Call

The Company will host a conference call to discuss these results at 4:30 p.m. ET on Monday, November 7, 2022. The call will be available, live, to interested parties by dialing 866-952-8559. For international callers, please dial +1 785-424-1743. The Conference ID is SEDG. 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 Company uses these non-GAAP financial measures to analyze its operating performance and future prospects, develop internal budgets and financial goals, and to facilitate period-to-period comparisons. The Company believes that these non-GAAP financial measures reflect an additional way of viewing aspects of its operations that, when viewed with its GAAP results, provide a more complete understanding of factors and trends affecting its business.

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; 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, the matters discussed in the section entitled “Risk Factors” of our Annual Report on Form 10-K for the year ended December 31, 2021, filed on February 22, 2022 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 7, 2022. The Company undertakes no duty or obligation to update any forward-looking statements contained in this release as a result of new information, future events or changes in its expectations.

SOLAREDGE TECHNOLOGIES INC.

CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Unaudited)

(in thousands, except per share data)

 

 

 

Three Months Ended

September 30,

 

Nine Months Ended

September 30,

 

 

2022

 

2021

 

2022

 

2021

Revenues

 

$

836,723

 

 

$

526,404

 

 

$

2,219,577

 

 

$

1,411,950

 

Cost of revenues

 

 

614,722

 

 

 

353,843

 

 

 

1,635,976

 

 

 

943,123

 

Gross profit

 

 

222,001

 

 

 

172,561

 

 

 

583,601

 

 

 

468,827

 

Operating expenses:

 

 

 

 

 

 

 

 

Research and development

 

 

69,659

 

 

 

55,666

 

 

 

210,855

 

 

 

155,307

 

Sales and marketing

 

 

42,726

 

 

 

29,383

 

 

 

117,017

 

 

 

85,752

 

General and administrative

 

 

27,933

 

 

 

21,098

 

 

 

82,483

 

 

 

60,317

 

Other operating expenses (income), net

 

 

(2,724

)

 

 

 

 

 

1,963

 

 

 

1,350

 

Total operating expenses

 

 

137,594

 

 

 

106,147

 

 

 

412,318

 

 

 

302,726

 

Operating income

 

 

84,407

 

 

 

66,414

 

 

 

171,283

 

 

 

166,101

 

Financial expense, net

 

 

(33,025

)

 

 

(5,751

)

 

 

(52,785

)

 

 

(13,591

)

Other income

 

 

7,533

 

 

 

 

 

 

7,533

 

 

 

 

Income before income taxes

 

 

58,915

 

 

 

60,663

 

 

 

126,031

 

 

 

152,510

 

Income taxes

 

 

34,172

 

 

 

7,615

 

 

 

53,081

 

 

 

24,294

 

Net income

 

$

24,743

 

 

$

53,048

 

 

$

72,950

 

 

$

128,216

 

SOLAREDGE TECHNOLOGIES INC.

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited)

(in thousands, except per share data)

 

 

 

September 30,

2022

 

December 31,

2021

ASSETS

 

 

 

 

CURRENT ASSETS:

 

 

 

 

Cash and cash equivalents

 

$

678,329

 

 

$

530,089

 

Marketable securities

 

 

202,598

 

 

 

167,728

 

Trade receivables, net of allowances of $4,283 and $2,626, respectively

 

 

785,325

 

 

 

456,339

 

Inventories, net

 

 

561,352

 

 

 

380,143

 

Prepaid expenses and other current assets

 

 

224,169

 

 

 

176,992

 

Total current assets

 

 

2,451,773

 

 

 

1,711,291

 

LONG-TERM ASSETS:

 

 

 

 

Marketable securities

 

 

688,753

 

 

 

482,228

 

Deferred tax assets, net

 

 

38,268

 

 

 

27,572

 

Property, plant and equipment, net

 

 

491,433

 

 

 

410,379

 

Operating lease right-of-use assets, net

 

 

62,535

 

 

 

47,137

 

Intangible assets, net

 

 

46,286

 

 

 

58,861

 

Goodwill

 

 

108,860

 

 

 

129,629

 

Other long-term assets

 

 

15,638

 

 

 

33,856

 

Total long-term assets

 

 

1,451,773

 

 

 

1,189,662

 

Total assets

 

 

3,903,546

 

 

 

2,900,953

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

 

 

CURRENT LIABILITIES:

 

 

 

 

Trade payables, net

 

 

311,565

 

 

 

252,068

 

Employees and payroll accruals

 

 

71,905

 

 

 

74,465

 

Warranty obligations

 

 

97,222

 

 

 

71,480

 

Deferred revenues and customers advances

 

 

31,896

 

 

 

17,789

 

Accrued expenses and other current liabilities

 

 

181,892

 

 

 

109,379

 

Total current liabilities

 

 

694,480

 

 

 

525,181

 

LONG-TERM LIABILITIES:

 

 

 

 

Convertible senior notes, net

 

 

623,721

 

 

 

621,535

 

Warranty obligations

 

 

248,917

 

 

 

193,680

 

Deferred revenues

 

 

176,824

 

 

 

151,556

 

Finance lease liabilities

 

 

45,509

 

 

 

40,508

 

Operating lease liabilities

 

 

46,398

 

 

 

38,912

 

Other long-term liabilities

 

 

15,570

 

 

 

19,542

 

Total long-term liabilities

 

 

1,156,939

 

 

 

1,065,733

 

COMMITMENTS AND CONTINGENT LIABILITIES

 

 

 

 

STOCKHOLDERS’ EQUITY:

 

 

 

 

Common stock of $0.0001 par value - Authorized: 125,000,000 shares as of September 30, 2022 and December 31, 2021; issued and outstanding: 55,894,106 and 52,815,395 shares as of September 30, 2022 and December 31, 2021, respectively

 

 

6

 

 

 

5

 

Additional paid-in capital

 

 

1,457,379

 

 

 

687,295

 

Accumulated other comprehensive loss

 

 

(128,266

)

 

 

(27,319

)

Retained earnings

 

 

723,008

 

 

 

650,058

 

Total stockholders’ equity

 

 

2,052,127

 

 

 

1,310,039

 

Total liabilities and stockholders’ equity

 

$

3,903,546

 

 

$

2,900,953

 

SOLAREDGE TECHNOLOGIES INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)

(in thousands, except per share data)

 

 

 

Nine Months Ended

September 30,

 

 

2022

 

2021

Cash flows from operating activities:

 

 

 

 

Net income

 

$

72,950

 

 

$

128,216

 

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

 

 

 

 

Depreciation of property, plant and equipment

 

 

29,571

 

 

 

21,492

 

Amortization of intangible assets

 

 

7,741

 

 

 

7,487

 

Amortization of debt discount and debt issuance costs

 

 

2,186

 

 

 

2,175

 

Amortization of premium and accretion of discount on available-for-sale marketable securities, net

 

 

7,864

 

 

 

6,301

 

Impairment of goodwill and intangible assets

 

 

4,008

 

 

 

 

Stock-based compensation expenses

 

 

106,932

 

 

 

73,390

 

Gain from sale of privately held company

 

 

(7,533

)

 

 

 

Deferred income taxes, net

 

 

(3,822

)

 

 

(6,686

)

Loss (gain) from sale and disposal of assets

 

 

(485

)

 

 

2,013

 

Exchange rate fluctuations and other items, net

 

 

64,662

 

 

 

13,086

 

Changes in assets and liabilities:

 

 

 

 

Inventories, net

 

 

(188,579

)

 

 

30,678

 

Prepaid expenses and other assets

 

 

(55,478

)

 

 

(14,977

)

Trade receivables, net

 

 

(377,089

)

 

 

(206,131

)

Trade payables, net

 

 

53,683

 

 

 

(22,959

)

Employees and payroll accruals

 

 

12,119

 

 

 

14,321

 

Warranty obligations

 

 

82,025

 

 

 

42,368

 

Deferred revenues and customers advances

 

 

41,440

 

 

 

13,723

 

Other liabilities, net

 

 

67,789

 

 

 

20,055

 

Net cash provided by (used in) operating activities

 

 

(80,016

)

 

 

124,552

 

Cash flows from investing activities:

 

 

 

 

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

 

 

178,415

 

 

 

174,817

 

Purchase of property, plant and equipment

 

 

(125,085

)

 

 

(94,135

)

Investment in available-for-sale marketable securities

 

 

(461,491

)

 

 

(511,615

)

Investment in a privately-held company

 

 

 

 

 

(16,643

)

Proceeds from sale of a privately-held company

 

 

24,175

 

 

 

 

Withdrawal from bank deposits, net

 

 

 

 

 

50,020

 

Payment for asset acquisition, net of cash acquired

 

 

 

 

 

(2,996

)

Other investing activities

 

 

3,472

 

 

 

2,593

 

Net cash used in investing activities

 

 

(380,514

)

 

 

(397,959

)

Cash flows from financing activities:

 

 

 

 

Proceeds from secondary public offering, net of issuance costs

 

 

650,526

 

 

 

 

Repayment of bank loans

 

 

(104

)

 

 

(16,219

)

Proceeds from exercise of stock-based awards

 

 

3,508

 

 

 

6,128

 

Tax withholding in connection with stock-based awards, net

 

 

(4,686

)

 

 

(8,402

)

Other financing activities

 

 

(2,109

)

 

 

(939

)

Net cash provided by (used in) financing activities

 

 

647,135

 

 

 

(19,432

)

Increase (decrease) in cash and cash equivalents

 

 

186,605

 

 

 

(292,839

)

Cash and cash equivalents at the beginning of the period

 

 

530,089

 

 

 

827,146

 

Effect of exchange rate differences on cash and cash equivalents

 

 

(38,365

)

 

 

(7,719

)

Cash and cash equivalents at the end of the period

 

$

678,329

 

 

$

526,588

 

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

 

Nine Months Ended

 

September 30,

2022

 

June 30,

2022

 

September 30,

2021

 

September 30,

2022

 

September 30,

2021

Gross profit (GAAP)

$

222,001

 

 

$

182,642

 

 

$

172,561

 

 

$

583,601

 

 

$

468,827

 

Revenues from finance component

 

(159

)

 

 

(146

)

 

 

(111

)

 

 

(440

)

 

 

(296

)

Stock-based compensation

 

4,661

 

 

 

5,285

 

 

 

4,289

 

 

 

15,008

 

 

 

14,370

 

Disposal of assets related to Critical Power

 

 

 

 

4,314

 

 

 

 

 

 

4,314

 

 

 

 

Amortization and depreciation of acquired assets

 

2,064

 

 

 

2,185

 

 

 

2,341

 

 

 

6,468

 

 

 

7,054

 

Gross profit (Non-GAAP)

$

228,567

 

 

$

194,280

 

 

$

179,080

 

 

$

608,951

 

 

$

489,955

 

 

 

 

 

 

 

 

 

 

 

Gross margin (GAAP)

 

26.5

%

 

 

25.1

%

 

 

32.8

%

 

 

26.3

%

 

 

33.2

%

Revenues from finance component

 

0.0

%

 

 

0.0

%

 

 

0.0

%

 

 

0.0

%

 

 

0.0

%

Stock-based compensation

 

0.6

%

 

 

0.7

%

 

 

0.8

%

 

 

0.7

%

 

 

1.0

%

Disposal of assets related to Critical Power

 

%

 

 

0.6

%

 

 

%

 

 

0.2

%

 

 

%

Amortization and depreciation of acquired assets

 

0.2

%

 

 

0.3

%

 

 

0.4

%

 

 

0.3

%

 

 

0.5

%

Gross margin (Non-GAAP)

 

27.3

%

 

 

26.7

%

 

 

34.0

%

 

 

27.4

%

 

 

34.7

%

 

 

 

 

 

 

 

 

 

 

Operating expenses (GAAP)

$

137,594

 

 

$

146,630

 

 

$

106,147

 

 

$

412,318

 

 

$

302,726

 

Stock-based compensation

 

(31,090

)

 

 

(31,789

)

 

 

(21,896

)

 

 

(91,924

)

 

 

(59,020

)

Amortization and depreciation of acquired assets

 

(495

)

 

 

(531

)

 

 

(444

)

 

 

(1,571

)

 

 

(953

)

Assets impairment

 

19

 

 

 

(4,687

)

 

 

 

 

 

(4,668

)

 

 

 

Gain (loss) from assets sales and disposal

 

744

 

 

 

(8

)

 

 

37

 

 

 

1,146

 

 

 

99

 

Other items

 

1,559

 

 

 

 

 

 

 

 

 

1,559

 

 

 

(1,350

)

Operating expenses (Non-GAAP)

$

108,331

 

 

$

109,615

 

 

$

83,844

 

 

$

316,860

 

 

$

241,502

 

 

 

 

 

 

 

 

 

 

 

Operating income (GAAP)

$

84,407

 

 

$

36,012

 

 

$

66,414

 

 

$

171,283

 

 

$

166,101

 

Revenues from finance component

 

(159

)

 

 

(146

)

 

 

(111

)

 

 

(440

)

 

 

(296

)

Disposal of assets related to Critical Power

 

 

 

 

4,314

 

 

 

 

 

 

4,314

 

 

 

 

Stock-based compensation

 

35,751

 

 

 

37,074

 

 

 

26,185

 

 

 

106,932

 

 

 

73,390

 

Amortization and depreciation of acquired assets

 

2,559

 

 

 

2,716

 

 

 

2,785

 

 

 

8,039

 

 

 

8,007

 

Assets impairment

 

(19

)

 

 

4,687

 

 

 

 

 

 

4,668

 

 

 

 

Loss (gain) from assets sales and disposal

 

(744

)

 

 

8

 

 

 

(37

)

 

 

(1,146

)

 

 

(99

)

Other items

 

(1,559

)

 

 

 

 

 

 

 

 

(1,559

)

 

 

1,350

 

Operating income (Non-GAAP)

$

120,236

 

 

$

84,665

 

 

$

95,236

 

 

$

292,091

 

 

$

248,453

 

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

 

Nine Months Ended

 

September 30,

2022

 

June 30,

2022

 

September 30,

2021

 

September 30,

2022

 

September 30,

2021

Financial income (expense), net (GAAP)

$

(33,025

)

 

$

(14,311

)

 

$

(5,751

)

 

$

(52,785

)

 

$

(13,591

)

Notes due 2025

 

730

 

 

 

728

 

 

 

726

 

 

 

2,186

 

 

 

2,175

 

Non cash interest

 

1,775

 

 

 

1,699

 

 

 

1,469

 

 

 

5,083

 

 

 

4,245

 

Currency fluctuation related to lease standard

 

(1,116

)

 

 

(9,028

)

 

 

574

 

 

 

(11,936

)

 

 

(415

)

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

$

(31,636

)

 

$

(20,912

)

 

$

(2,982

)

 

$

(57,452

)

 

$

(7,586

)

 

 

 

 

 

 

 

 

 

 

Other income (GAAP)

$

7,533

 

 

$

 

 

$

 

 

$

7,533

 

 

$

 

Gain from sale of investment in privately-held company

 

(7,533

)

 

 

 

 

 

 

 

 

(7,533

)

 

 

 

Other income (Non-GAAP)

$

 

 

$

 

 

$

 

 

$

 

 

$

 

 

 

 

 

 

 

 

 

 

 

Income tax benefit (expense) (GAAP)

$

(34,172

)

 

$

(6,617

)

 

$

(7,615

)

 

$

(53,081

)

 

$

(24,294

)

Income tax adjustment

 

(291

)

 

 

(389

)

 

 

(2,528

)

 

 

(1,881

)

 

 

(6,458

)

Income tax benefit (expense) (Non-GAAP)

$

(34,463

)

 

$

(7,006

)

 

$

(10,143

)

 

$

(54,962

)

 

$

(30,752

)

 

 

 

 

 

 

 

 

 

 

Net income (GAAP)

$

24,743

 

 

$

15,084

 

 

$

53,048

 

 

$

72,950

 

 

$

128,216

 

Revenues from finance component

 

(159

)

 

 

(146

)

 

 

(111

)

 

 

(440

)

 

 

(296

)

Disposal of assets related to Critical Power

 

 

 

 

4,314

 

 

 

 

 

 

4,314

 

 

 

 

Stock-based compensation

 

35,751

 

 

 

37,074

 

 

 

26,185

 

 

 

106,932

 

 

 

73,390

 

Amortization and depreciation of acquired assets

 

2,559

 

 

 

2,716

 

 

 

2,785

 

 

 

8,039

 

 

 

8,007

 

Assets impairment

 

(19

)

 

 

4,687

 

 

 

 

 

 

4,668

 

 

 

 

Loss (gain) from assets sales and disposal

 

(744

)

 

 

8

 

 

 

(37

)

 

 

(1,146

)

 

 

(99

)

Other items

 

(1,559

)

 

 

 

 

 

 

 

 

(1,559

)

 

 

1,350

 

Notes due 2025

 

730

 

 

 

728

 

 

 

726

 

 

 

2,186

 

 

 

2,175

 

Non cash interest

 

1,775

 

 

 

1,699

 

 

 

1,469

 

 

 

5,083

 

 

 

4,245

 

Currency fluctuation related to lease standard

 

(1,116

)

 

 

(9,028

)

 

 

574

 

 

 

(11,936

)

 

 

(415

)

Gain from sale of investment in privately-held company

 

(7,533

)

 

 

 

 

 

 

 

 

(7,533

)

 

 

 

Income tax adjustment

 

(291

)

 

 

(389

)

 

 

(2,528

)

 

 

(1,881

)

 

 

(6,458

)

Net income (Non-GAAP)

$

54,137

 

 

$

56,747

 

 

$

82,111

 

 

$

179,677

 

 

$

210,115

 

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

 

Nine Months Ended

 

September 30,

2022

 

June 30,

2022

 

September 30,

2021

 

September 30,

2022

 

September 30,

2021

Net basic earnings per share (GAAP)

$

0.44

 

 

$

0.27

 

 

$

1.01

 

 

$

1.33

 

 

$

2.46

 

Revenues from finance component

 

0.00

 

 

 

0.00

 

 

 

0.00

 

 

 

(0.01

)

 

 

0.00

 

Disposal of assets related to Critical Power

 

 

 

 

0.08

 

 

 

 

 

 

0.08

 

 

 

 

Stock-based compensation

 

0.64

 

 

 

0.67

 

 

 

0.50

 

 

 

1.95

 

 

 

1.41

 

Amortization and depreciation of acquired assets

 

0.05

 

 

 

0.04

 

 

 

0.05

 

 

 

0.15

 

 

 

0.15

 

Assets impairment

 

0.00

 

 

 

0.09

 

 

 

 

 

 

0.09

 

 

 

 

Loss (gain) from assets sales and disposal

 

(0.02

)

 

 

0.00

 

 

 

0.00

 

 

 

(0.03

)

 

 

0.00

 

Other items

 

(0.02

)

 

 

 

 

 

 

 

 

(0.02

)

 

 

0.03

 

Notes due 2025

 

0.01

 

 

 

0.01

 

 

 

0.02

 

 

 

0.04

 

 

 

0.04

 

Non cash interest

 

0.03

 

 

 

0.03

 

 

 

0.03

 

 

 

0.09

 

 

 

0.08

 

Currency fluctuation related to lease standard

 

(0.02

)

 

 

(0.16

)

 

 

0.01

 

 

 

(0.22

)

 

 

(0.01

)

Gain from sale of investment in privately-held company

 

(0.13

)

 

 

 

 

 

 

 

 

(0.14

)

 

 

 

Income tax adjustment

 

(0.01

)

 

 

(0.01

)

 

 

(0.05

)

 

 

(0.03

)

 

 

(0.12

)

Net basic earnings per share (Non-GAAP)

$

0.97

 

 

$

1.02

 

 

$

1.57

 

 

$

3.28

 

 

$

4.04

 

 

 

 

 

 

 

 

 

 

 

Net diluted earnings per share (GAAP)

$

0.43

 

 

$

0.26

 

 

$

0.96

 

 

$

1.29

 

 

$

2.32

 

Revenues from finance component

 

0.00

 

 

 

0.00

 

 

 

0.00

 

 

 

(0.01

)

 

 

(0.01

)

Disposal of assets related to Critical Power

 

 

 

 

0.08

 

 

 

 

 

 

0.08

 

 

 

 

Stock-based compensation

 

0.59

 

 

 

0.62

 

 

 

0.45

 

 

 

1.80

 

 

 

1.27

 

Amortization and depreciation of acquired assets

 

0.05

 

 

 

0.04

 

 

 

0.05

 

 

 

0.13

 

 

 

0.14

 

Assets impairment

 

0.00

 

 

 

0.08

 

 

 

 

 

 

0.08

 

 

 

 

Loss (gain) from assets sales and disposal

 

(0.02

)

 

 

0.00

 

 

 

0.00

 

 

 

(0.02

)

 

 

0.00

 

Other items

 

(0.02

)

 

 

 

 

 

 

 

 

(0.02

)

 

 

0.02

 

Notes due 2025

 

0.00

 

 

 

0.00

 

 

 

0.00

 

 

 

0.00

 

 

 

0.01

 

Non cash interest

 

0.03

 

 

 

0.03

 

 

 

0.03

 

 

 

0.09

 

 

 

0.08

 

Currency fluctuation related to lease standard

 

(0.02

)

 

 

(0.15

)

 

 

0.01

 

 

 

(0.20

)

 

 

(0.01

)

Gain from sale of investment in privately-held company

 

(0.13

)

 

 

 

 

 

 

 

 

(0.13

)

 

 

 

Income tax adjustment

 

0.00

 

 

 

(0.01

)

 

 

(0.05

)

 

 

(0.03

)

 

 

(0.11

)

Net diluted earnings per share (Non-GAAP)

$

0.91

 

 

$

0.95

 

 

$

1.45

 

 

$

3.06

 

 

$

3.71

 

 

 

 

 

 

 

 

 

 

 

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

 

58,747,538

 

 

 

58,564,734

 

 

 

55,929,000

 

 

 

57,886,041

 

 

 

55,955,441

 

Stock-based compensation

 

784,228

 

 

 

904,781

 

 

 

653,967

 

 

 

872,076

 

 

 

733,488

 

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

 

59,531,766

 

 

 

59,469,515

 

 

 

56,582,967

 

 

 

58,758,117

 

 

 

56,688,929

 

 

Investor Contacts
SolarEdge Technologies, Inc.
Ronen Faier, Chief Financial Officer
+1 510-498-3263
investors@solaredge.com

Sapphire Investor Relations, LLC
Erica Mannion or Michael Funari
+1 617-542-6180
investors@solaredge.com

Source: SolarEdge Technologies, Inc.