SolarEdge Announces Third Quarter 2023 Financial Results
Third Quarter 2023 Highlights
-
Revenues of
$725.3 million -
Revenues from solar segment of
$676.4 million - GAAP gross margin of 19.7%
- Non-GAAP gross margin* of 20.8%
- Gross margin from solar segment of 24.0%
-
GAAP operating loss of
$16.7 million -
Non-GAAP operating income* of
$23.1 million -
GAAP net loss of
$61.2 million -
Non-GAAP net loss* of
$31.0 million -
GAAP net diluted loss per share (“EPS”) of
$1.08 -
Non-GAAP net diluted loss per share* of
$0.55 - 3.8 Gigawatts (AC) of inverters shipped
- 121 MWh of batteries shipped
“The results for the third quarter fell short of our prior expectations and are reflecting a slow market environment, which has resulted in high inventory of our products in the distribution channels, in particular in Europe,” said
Third Quarter 2023 Summary
The Company reported revenues of
Revenues from the solar segment were
GAAP gross margin was 19.7%, down from 32.0% in the prior quarter and down from 26.5% in the same quarter last year.
Non-GAAP gross margin* was 20.8%, down from 32.7% in the prior quarter and down from 27.3% in the same quarter last year.
Gross margin from the solar segment was 24.0%, down from 34.7% in the prior quarter and down from 28.3% in the same quarter last year.
GAAP operating expenses were
Non-GAAP operating expenses* were
GAAP operating loss was
Non-GAAP operating income* was
GAAP net loss was
Non-GAAP net loss* was
GAAP net diluted loss per share was
Non-GAAP net diluted loss per share* was
Cash generated from operating activities was
As of
Outlook for the Fourth Quarter 2023
The Company also provides guidance for the fourth quarter ending
-
Revenues to be within the range of
$300 million to$350 million - Non-GAAP gross margin** expected to be within the range of 5% to 8%, including approximately 130 basis points of net IRA manufacturing tax credit
-
Non-GAAP operating expenses** to be within the range of
$126 million to$130 million -
Revenues from the solar segment to be within the range of
$275 million to$320 million - Gross margin from the solar segment expected to be within the range of 7% to 10% including approximately 130 basis points of net IRA manufacturing tax credit
* Non-GAAP financial measure. See “Non-GAAP Financial Measures” for additional information on non-GAAP financial measures and a reconciliation to the most comparable GAAP measures.
**Non-GAAP gross margin and Non-GAAP operating expenses are non-GAAP financial measures, and these forward-looking measures have not been reconciled to the most comparable GAAP outlook because it is not possible to do so without unreasonable efforts due to the uncertainty and potential variability of reconciling items, which are dependent on future events and often outside of management’s control and which could be significant. Because such items cannot be reasonably predicted with the level of precision required, we are unable to provide outlook for the comparable GAAP measures. Forward-looking estimates of Non-GAAP gross margin and Non-GAAP operating expenses are made in a manner consistent with the relevant definitions and assumptions noted herein and in our filings with the
Conference Call
The Company will host a conference call to discuss its results for the third quarter ended
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
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 Non-GAAP measures are presented in this press release because we believe that they provide investors with a means of evaluating and understanding how the Company’s management evaluates the company’s operating performance. The non-GAAP financial measures in this earnings release may differ from similarly titled measures used by other companies.
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995
This release contains forward looking statements which are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include information, among other things, concerning: our possible or assumed future results of operations; future demands for solar energy solutions; business strategies; technology developments; financing and investment plans; dividend policy; competitive position; industry and regulatory environment; general economic conditions; potential growth opportunities; cancellations and pushouts of existing backlog; installation rates; and the effects of competition. These forward-looking statements are often characterized by the use of words such as “anticipate,” “believe,” “could,” “seek,” “estimate,” “expect,” “intend,” “may,” “plan,” “potential,” “predict,” “project,” “should,” “will,” “would” or similar expressions and the negative or plural of those terms and other like terminology.
Forward-looking statements are only predictions based on our current expectations and our projections about future events. These forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause our actual results, levels of activity, performance or achievements to be materially different from those expressed or implied by the forward-looking statements. Given these factors, you should not place undue reliance on these forward-looking statements. These factors include, but are not limited to, future demand for renewable energy including solar energy solutions; changes, elimination or expiration of government subsidies and economic incentives for on-grid solar energy applications; changes in the
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (LOSS) (in thousands, except per share data) |
||||||||||||||||
|
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||
|
|
2023 |
|
2022 |
|
2023 |
|
2022 |
||||||||
|
|
Unaudited |
||||||||||||||
Revenues |
|
$ |
725,305 |
|
|
$ |
836,723 |
|
|
$ |
2,660,484 |
|
|
$ |
2,219,577 |
|
Cost of revenues |
|
|
582,488 |
|
|
|
614,722 |
|
|
|
1,900,236 |
|
|
|
1,635,976 |
|
Gross profit |
|
|
142,817 |
|
|
|
222,001 |
|
|
|
760,248 |
|
|
|
583,601 |
|
Operating expenses: |
|
|
|
|
|
|
|
|
||||||||
Research and development |
|
|
80,082 |
|
|
|
69,659 |
|
|
|
246,481 |
|
|
|
210,855 |
|
Sales and marketing |
|
|
40,351 |
|
|
|
42,726 |
|
|
|
125,539 |
|
|
|
117,017 |
|
General and administrative |
|
|
39,110 |
|
|
|
27,933 |
|
|
|
111,876 |
|
|
|
82,483 |
|
Other operating expense (income), net |
|
|
— |
|
|
|
(2,724 |
) |
|
|
(1,434 |
) |
|
|
1,963 |
|
Total operating expenses |
|
|
159,543 |
|
|
|
137,594 |
|
|
|
482,462 |
|
|
|
412,318 |
|
Operating income (loss) |
|
|
(16,726 |
) |
|
|
84,407 |
|
|
|
277,786 |
|
|
|
171,283 |
|
Financial income (expense), net |
|
|
(7,901 |
) |
|
|
(33,146 |
) |
|
|
19,157 |
|
|
|
(52,062 |
) |
Other income (loss), net |
|
|
(484 |
) |
|
|
7,654 |
|
|
|
(609 |
) |
|
|
6,810 |
|
Income (loss) before income taxes |
|
|
(25,111 |
) |
|
|
58,915 |
|
|
|
296,334 |
|
|
|
126,031 |
|
Income taxes |
|
|
36,065 |
|
|
|
34,172 |
|
|
|
99,622 |
|
|
|
53,081 |
|
Net income (loss) |
|
$ |
(61,176 |
) |
|
$ |
24,743 |
|
|
$ |
196,712 |
|
|
$ |
72,950 |
|
CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands, except per share data) |
||||||||
|
|
|
|
|||||
ASSETS |
|
|
|
|
||||
CURRENT ASSETS: |
|
|
|
|
||||
Cash and cash equivalents |
|
$ |
551,122 |
|
|
$ |
783,112 |
|
Marketable securities |
|
|
477,275 |
|
|
|
241,117 |
|
Trade receivables, net of allowances of |
|
|
939,545 |
|
|
|
905,146 |
|
Inventories, net |
|
|
1,177,805 |
|
|
|
729,201 |
|
Prepaid expenses and other current assets |
|
|
217,720 |
|
|
|
241,082 |
|
Total current assets |
|
|
3,363,467 |
|
|
|
2,899,658 |
|
LONG-TERM ASSETS: |
|
|
|
|
||||
Marketable securities |
|
|
436,139 |
|
|
|
645,491 |
|
Deferred tax assets, net |
|
|
60,147 |
|
|
|
44,153 |
|
Property, plant and equipment, net |
|
|
604,819 |
|
|
|
543,969 |
|
Operating lease right-of-use assets, net |
|
|
67,331 |
|
|
|
62,754 |
|
Intangible assets, net |
|
|
41,947 |
|
|
|
19,929 |
|
|
|
|
41,201 |
|
|
|
31,189 |
|
Other long-term assets |
|
|
36,103 |
|
|
|
18,806 |
|
Total long-term assets |
|
|
1,287,687 |
|
|
|
1,366,291 |
|
Total assets |
|
|
4,651,154 |
|
|
|
4,265,949 |
|
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
|
||||
CURRENT LIABILITIES: |
|
|
|
|
||||
Trade payables, net |
|
|
394,569 |
|
|
|
459,831 |
|
Employees and payroll accruals |
|
|
77,740 |
|
|
|
85,158 |
|
Warranty obligations |
|
|
175,426 |
|
|
|
103,975 |
|
Deferred revenues and customers advances |
|
|
22,064 |
|
|
|
26,641 |
|
Accrued expenses and other current liabilities |
|
|
203,448 |
|
|
|
214,112 |
|
Total current liabilities |
|
|
873,247 |
|
|
|
889,717 |
|
LONG-TERM LIABILITIES: |
|
|
|
|
||||
Convertible senior notes, net |
|
|
626,647 |
|
|
|
624,451 |
|
Warranty obligations |
|
|
345,091 |
|
|
|
281,082 |
|
Deferred revenues |
|
|
212,025 |
|
|
|
186,936 |
|
Finance lease liabilities |
|
|
40,323 |
|
|
|
45,385 |
|
Operating lease liabilities |
|
|
46,580 |
|
|
|
46,256 |
|
Other long-term liabilities |
|
|
16,835 |
|
|
|
15,756 |
|
Total long-term liabilities |
|
|
1,287,501 |
|
|
|
1,199,866 |
|
COMMITMENTS AND CONTINGENT LIABILITIES |
|
|
|
|
||||
STOCKHOLDERS’ EQUITY: |
|
|
|
|
||||
Common stock of |
|
|
6 |
|
|
|
6 |
|
Additional paid-in capital |
|
|
1,633,800 |
|
|
|
1,505,632 |
|
Accumulated other comprehensive loss |
|
|
(83,949 |
) |
|
|
(73,109 |
) |
Retained earnings |
|
|
940,549 |
|
|
|
743,837 |
|
Total stockholders’ equity |
|
|
2,490,406 |
|
|
|
2,176,366 |
|
Total liabilities and stockholders’ equity |
|
$ |
4,651,154 |
|
|
$ |
4,265,949 |
|
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands, except per share data) |
||||||||
|
Nine Months Ended
|
|||||||
|
|
2023 |
|
2022 |
||||
Cash flows from operating activities: |
|
|
|
|
||||
Net income |
|
$ |
196,712 |
|
|
$ |
72,950 |
|
Adjustments to reconcile net income to net cash provided by (used in) operating activities: |
|
|
|
|
||||
Depreciation and amortization |
|
|
42,019 |
|
|
|
37,312 |
|
Loss (gain) from exchange rate fluctuations |
|
|
(8,170 |
) |
|
|
58,100 |
|
Stock-based compensation expenses |
|
|
115,015 |
|
|
|
106,932 |
|
Impairment of goodwill and intangible assets |
|
|
— |
|
|
|
4,008 |
|
Deferred income taxes, net |
|
|
(18,199 |
) |
|
|
(3,822 |
) |
Other items |
|
|
6,915 |
|
|
|
8,594 |
|
Changes in assets and liabilities: |
|
|
|
|
||||
Inventories, net |
|
|
(437,801 |
) |
|
|
(188,579 |
) |
Prepaid expenses and other assets |
|
|
19,822 |
|
|
|
(55,478 |
) |
Trade receivables, net |
|
|
(40,011 |
) |
|
|
(377,089 |
) |
Trade payables, net |
|
|
(58,701 |
) |
|
|
53,683 |
|
Employees and payroll accruals |
|
|
12,099 |
|
|
|
12,119 |
|
Warranty obligations |
|
|
135,568 |
|
|
|
82,025 |
|
Deferred revenues and customers advances |
|
|
18,580 |
|
|
|
41,440 |
|
Accrued expenses and other liabilities, net |
|
|
(24,051 |
) |
|
|
67,789 |
|
Net cash used in operating activities |
|
|
(40,203 |
) |
|
|
(80,016 |
) |
Cash flows from investing activities: |
|
|
|
|
||||
Investment in available-for-sale marketable securities |
|
|
(214,516 |
) |
|
|
(461,491 |
) |
Proceeds from sales and maturities of available-for-sale marketable securities |
|
|
194,617 |
|
|
|
178,415 |
|
Purchase of property, plant and equipment |
|
|
(130,024 |
) |
|
|
(125,085 |
) |
Business combinations, net of cash acquired |
|
|
(16,653 |
) |
|
|
— |
|
Purchase of intangible assets |
|
|
(10,600 |
) |
|
|
— |
|
Disbursements for loans receivables |
|
|
(13,000 |
) |
|
|
— |
|
Investment in privately-held companies |
|
|
(8,000 |
) |
|
|
— |
|
Proceeds from governmental grant |
|
|
6,796 |
|
|
|
— |
|
Proceeds from sale of a privately-held company |
|
|
— |
|
|
|
24,175 |
|
Other investing activities |
|
|
3,193 |
|
|
|
3,472 |
|
Net cash used in investing activities |
|
|
(188,187 |
) |
|
|
(380,514 |
) |
Cash flows from financing activities: |
|
|
|
|
||||
Tax withholding in connection with stock-based awards, net |
|
|
(9,267 |
) |
|
|
(4,686 |
) |
Payments of finance lease liability |
|
|
(2,123 |
) |
|
|
(2,109 |
) |
Proceeds from secondary public offering, net of issuance costs |
|
|
— |
|
|
|
650,526 |
|
Other financing activities |
|
|
85 |
|
|
|
3,404 |
|
Net cash provided by (used in) financing activities |
|
|
(11,305 |
) |
|
|
647,135 |
|
Increase (decrease) in cash and cash equivalents |
|
|
(239,695 |
) |
|
|
186,605 |
|
Cash and cash equivalents at the beginning of the period |
|
|
783,112 |
|
|
|
530,089 |
|
Effect of exchange rate differences on cash and cash equivalents |
|
|
7,705 |
|
|
|
(38,365 |
) |
Cash and cash equivalents at the end of the period |
|
|
551,122 |
|
|
|
678,329 |
|
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (Unaudited) (in thousands, except per share data and percentages) |
|||||||||||||||||||
|
Reconciliation of GAAP to Non-GAAP |
||||||||||||||||||
|
Q3-22 |
|
Q4-22 |
|
Q1-23 |
|
Q2-23 |
|
Q3-23 |
||||||||||
Gross profit (GAAP) |
$ |
222,001 |
|
|
$ |
261,047 |
|
|
$ |
300,126 |
|
|
$ |
317,305 |
|
|
$ |
142,817 |
|
Revenues from finance component |
|
(159 |
) |
|
|
(174 |
) |
|
|
(187 |
) |
|
|
(202 |
) |
|
|
(215 |
) |
Stock-based compensation |
|
4,661 |
|
|
|
6,810 |
|
|
|
5,927 |
|
|
|
5,923 |
|
|
|
5,882 |
|
Amortization of stock-based compensation capitalized in inventories |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
316 |
|
|
|
441 |
|
Amortization and depreciation of acquired asset |
|
2,064 |
|
|
|
961 |
|
|
|
1,515 |
|
|
|
872 |
|
|
|
2,096 |
|
Gross profit (Non-GAAP) |
$ |
228,567 |
|
|
$ |
268,644 |
|
|
$ |
307,381 |
|
|
$ |
324,214 |
|
|
$ |
151,021 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Gross margin (GAAP) |
|
26.5 |
% |
|
|
29.3 |
% |
|
|
31.8 |
% |
|
|
32.0 |
% |
|
|
19.7 |
% |
Revenues from finance component |
|
0.0 |
% |
|
|
0.0 |
% |
|
|
0.0 |
% |
|
|
0.0 |
% |
|
|
0.0 |
% |
Stock-based compensation |
|
0.6 |
% |
|
|
0.8 |
% |
|
|
0.6 |
% |
|
|
0.6 |
% |
|
|
0.8 |
% |
Amortization of stock-based compensation capitalized in inventories |
|
— |
% |
|
|
— |
% |
|
|
— |
% |
|
|
0.0 |
% |
|
|
0.0 |
% |
Amortization and depreciation of acquired assets |
|
0.2 |
% |
|
|
0.1 |
% |
|
|
0.2 |
% |
|
|
0.1 |
% |
|
|
0.3 |
% |
Gross margin (Non-GAAP) |
|
27.3 |
% |
|
|
30.2 |
% |
|
|
32.6 |
% |
|
|
32.7 |
% |
|
|
20.8 |
% |
|
|
|
|
|
|
|
|
|
|
||||||||||
Operating expenses (GAAP) |
$ |
137,594 |
|
|
$ |
266,210 |
|
|
$ |
155,972 |
|
|
$ |
166,947 |
|
|
$ |
159,543 |
|
Stock-based compensation - R&D |
|
(14,553 |
) |
|
|
(16,854 |
) |
|
|
(17,209 |
) |
|
|
(17,272 |
) |
|
|
(16,481 |
) |
Stock-based compensation - S&M |
|
(9,341 |
) |
|
|
(7,928 |
) |
|
|
(8,079 |
) |
|
|
(7,822 |
) |
|
|
(7,739 |
) |
Stock-based compensation - G&A |
|
(7,196 |
) |
|
|
(7,015 |
) |
|
|
(8,020 |
) |
|
|
(7,948 |
) |
|
|
(6,713 |
) |
Amortization and depreciation of acquired assets - R&D |
|
(302 |
) |
|
|
(301 |
) |
|
|
(313 |
) |
|
|
(289 |
) |
|
|
(329 |
) |
Amortization and depreciation of acquired assets - S&M |
|
(187 |
) |
|
|
(173 |
) |
|
|
(181 |
) |
|
|
(235 |
) |
|
|
(321 |
) |
Amortization and depreciation of acquired assets - G&A |
|
(6 |
) |
|
|
(4 |
) |
|
|
(26 |
) |
|
|
17 |
|
|
|
(4 |
) |
Assets impairment |
|
19 |
|
|
|
(114,473 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
Gain (loss) from assets sales and disposal |
|
2,303 |
|
|
|
(102 |
) |
|
|
1,434 |
|
|
|
— |
|
|
|
— |
|
Acquisition costs |
|
— |
|
|
|
(350 |
) |
|
|
— |
|
|
|
(135 |
) |
|
|
— |
|
Operating expenses (Non-GAAP) |
$ |
108,331 |
|
|
$ |
119,010 |
|
|
$ |
123,578 |
|
|
$ |
133,263 |
|
|
$ |
127,956 |
|
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (Unaudited) (in thousands, except per share data and percentages) |
|||||||||||||||||||
|
|||||||||||||||||||
|
Reconciliation of GAAP to Non-GAAP |
||||||||||||||||||
|
Q3-22 |
|
Q4-22 |
|
Q1-23 |
|
Q2-23 |
|
Q3-23 |
||||||||||
Operating income (loss) (GAAP) |
$ |
84,407 |
|
|
$ |
(5,163 |
) |
|
$ |
144,154 |
|
|
$ |
150,358 |
|
|
$ |
(16,726 |
) |
Revenues from finance component |
|
(159 |
) |
|
|
(174 |
) |
|
|
(187 |
) |
|
|
(202 |
) |
|
|
(215 |
) |
Stock-based compensation |
|
35,751 |
|
|
|
38,607 |
|
|
|
39,235 |
|
|
|
38,965 |
|
|
|
36,815 |
|
Amortization of stock-based compensation capitalized in inventories |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
316 |
|
|
|
441 |
|
Amortization and depreciation of acquired assets |
|
2,559 |
|
|
|
1,439 |
|
|
|
2,035 |
|
|
|
1,379 |
|
|
|
2,750 |
|
Assets impairment |
|
(19 |
) |
|
|
114,473 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Loss (gain) from assets sales and disposal |
|
(2,303 |
) |
|
|
102 |
|
|
|
(1,434 |
) |
|
|
— |
|
|
|
— |
|
Acquisition costs |
|
— |
|
|
|
350 |
|
|
|
— |
|
|
|
135 |
|
|
|
— |
|
Operating income (Non-GAAP) |
$ |
120,236 |
|
|
$ |
149,634 |
|
|
$ |
183,803 |
|
|
$ |
190,951 |
|
|
$ |
23,065 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Financial income (expense), net (GAAP) |
$ |
(33,025 |
) |
|
$ |
56,101 |
|
|
$ |
23,674 |
|
|
$ |
3,384 |
|
|
$ |
(7,901 |
) |
Non cash interest expense |
|
2,505 |
|
|
|
2,685 |
|
|
|
2,892 |
|
|
|
3,105 |
|
|
|
3,284 |
|
Unrealized losses (gains) |
|
— |
|
|
|
(170 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
Currency fluctuation related to lease standard |
|
(1,116 |
) |
|
|
749 |
|
|
|
(2,519 |
) |
|
|
(2,107 |
) |
|
|
(2,788 |
) |
Financial income (expense), net (Non-GAAP) |
$ |
(31,636 |
) |
|
$ |
59,365 |
|
|
$ |
24,047 |
|
|
$ |
4,382 |
|
|
$ |
(7,405 |
) |
|
|
|
|
|
|
|
|
|
|
||||||||||
Other income (loss) (GAAP) |
$ |
7,533 |
|
|
$ |
186 |
|
|
$ |
(125 |
) |
|
$ |
— |
|
|
$ |
(484 |
) |
Loss (gain) from sale of investment in privately-held company |
|
(7,533 |
) |
|
|
(186 |
) |
|
|
— |
|
|
|
— |
|
|
|
484 |
|
Other income (loss) (Non-GAAP) |
$ |
— |
|
|
$ |
— |
|
|
$ |
(125 |
) |
|
$ |
— |
|
|
$ |
— |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Income tax benefit (expense) (GAAP) |
$ |
(34,172 |
) |
|
$ |
(30,295 |
) |
|
$ |
(29,325 |
) |
|
$ |
(34,232 |
) |
|
$ |
(36,065 |
) |
Income tax adjustment |
|
(291 |
) |
|
|
(7,186 |
) |
|
|
(3,901 |
) |
|
|
(3,735 |
) |
|
|
(10,561 |
) |
Income tax benefit (expense) (Non-GAAP) |
$ |
(34,463 |
) |
|
$ |
(37,481 |
) |
|
$ |
(33,226 |
) |
|
$ |
(37,967 |
) |
|
$ |
(46,626 |
) |
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (Unaudited) (in thousands, except per share data and percentages) |
|||||||||||||||||||
|
Reconciliation of GAAP to Non-GAAP |
||||||||||||||||||
|
Q3-22 |
|
Q4-22 |
|
Q1-23 |
|
Q2-23 |
|
Q3-23 |
||||||||||
Net income (loss) (GAAP) |
$ |
24,743 |
|
|
$ |
20,829 |
|
|
$ |
138,378 |
|
|
$ |
119,510 |
|
|
$ |
(61,176 |
) |
Revenues from finance component |
|
(159 |
) |
|
|
(174 |
) |
|
|
(187 |
) |
|
|
(202 |
) |
|
|
(215 |
) |
Stock-based compensation |
|
35,751 |
|
|
|
38,607 |
|
|
|
39,235 |
|
|
|
38,965 |
|
|
|
36,815 |
|
Amortization of stock-based compensation capitalized in inventories |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
316 |
|
|
|
441 |
|
Amortization and depreciation of acquired assets |
|
2,559 |
|
|
|
1,439 |
|
|
|
2,035 |
|
|
|
1,379 |
|
|
|
2,750 |
|
Assets impairment |
|
(19 |
) |
|
|
114,473 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Loss (gain) from assets sales and disposal |
|
(2,303 |
) |
|
|
102 |
|
|
|
(1,434 |
) |
|
|
— |
|
|
|
— |
|
Acquisition costs |
|
— |
|
|
|
350 |
|
|
|
— |
|
|
|
135 |
|
|
|
— |
|
Non cash interest expense |
|
2,505 |
|
|
|
2,685 |
|
|
|
2,892 |
|
|
|
3,105 |
|
|
|
3,284 |
|
Unrealized losses (gains) |
|
— |
|
|
|
(170 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
Currency fluctuation related to lease standard |
|
(1,116 |
) |
|
|
749 |
|
|
|
(2,519 |
) |
|
|
(2,107 |
) |
|
|
(2,788 |
) |
Loss (gain) from sale of investment in privately-held company |
|
(7,533 |
) |
|
|
(186 |
) |
|
|
— |
|
|
|
— |
|
|
|
484 |
|
Income tax adjustment |
|
(291 |
) |
|
|
(7,186 |
) |
|
|
(3,901 |
) |
|
|
(3,735 |
) |
|
|
(10,561 |
) |
Net income (loss) (Non-GAAP) |
$ |
54,137 |
|
|
$ |
171,518 |
|
|
$ |
174,499 |
|
|
$ |
157,366 |
|
|
$ |
(30,966 |
) |
|
|
|
|
|
|
|
|
|
|
||||||||||
Net basic earnings (loss) per share (GAAP) |
$ |
0.44 |
|
|
$ |
0.37 |
|
|
$ |
2.46 |
|
|
$ |
2.12 |
|
|
$ |
(1.08 |
) |
Revenues from finance component |
|
0.00 |
|
|
|
0.00 |
|
|
|
0.00 |
|
|
|
(0.01 |
) |
|
|
0.00 |
|
Stock-based compensation |
|
0.64 |
|
|
|
0.69 |
|
|
|
0.70 |
|
|
|
0.70 |
|
|
|
0.65 |
|
Amortization of stock-based compensation capitalized in inventories |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
0.00 |
|
|
|
0.00 |
|
Amortization and depreciation of acquired assets |
|
0.05 |
|
|
|
0.02 |
|
|
|
0.03 |
|
|
|
0.03 |
|
|
|
0.05 |
|
Assets impairment |
|
0.00 |
|
|
|
2.05 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Loss (gain) from assets sales and disposal |
|
(0.04 |
) |
|
|
0.00 |
|
|
|
(0.02 |
) |
|
|
— |
|
|
|
— |
|
Acquisition costs |
|
— |
|
|
|
0.01 |
|
|
|
— |
|
|
|
0.00 |
|
|
|
— |
|
Non cash interest expense |
|
0.04 |
|
|
|
0.05 |
|
|
|
0.05 |
|
|
|
0.05 |
|
|
|
0.06 |
|
Unrealized losses (gains) |
|
— |
|
|
|
(0.01 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
Currency fluctuation related to lease standard |
|
(0.02 |
) |
|
|
0.02 |
|
|
|
(0.05 |
) |
|
|
(0.03 |
) |
|
|
(0.05 |
) |
Loss (gain) from sale of investment in privately-held company |
|
(0.13 |
) |
|
|
(0.01 |
) |
|
|
— |
|
|
|
— |
|
|
|
0.01 |
|
Income tax adjustment |
|
(0.01 |
) |
|
|
(0.13 |
) |
|
|
(0.07 |
) |
|
|
(0.07 |
) |
|
|
(0.19 |
) |
Net basic earnings (loss) per share (Non-GAAP) |
$ |
0.97 |
|
|
$ |
3.06 |
|
|
$ |
3.10 |
|
|
$ |
2.79 |
|
|
$ |
(0.55 |
) |
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (Unaudited) (in thousands, except per share data and percentages) |
|||||||||||||||||||
|
|||||||||||||||||||
|
Reconciliation of GAAP to Non-GAAP |
||||||||||||||||||
|
Q3-22 |
|
Q4-22 |
|
Q1-23 |
|
Q2-23 |
|
Q3-23 |
||||||||||
Net diluted earnings (loss) per share (GAAP) |
$ |
0.43 |
|
|
$ |
0.36 |
|
|
$ |
2.35 |
|
|
$ |
2.03 |
|
|
$ |
(1.08 |
) |
Revenues from finance component |
|
0.00 |
|
|
|
0.00 |
|
|
|
(0.01 |
) |
|
|
(0.01 |
) |
|
|
0.00 |
|
Stock-based compensation |
|
0.59 |
|
|
|
0.64 |
|
|
|
0.62 |
|
|
|
0.62 |
|
|
|
0.65 |
|
Amortization of stock-based compensation capitalized in inventories |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
0.00 |
|
|
|
0.00 |
|
Amortization and depreciation of acquired assets |
|
0.05 |
|
|
|
0.02 |
|
|
|
0.03 |
|
|
|
0.03 |
|
|
|
0.05 |
|
Assets impairment |
|
0.00 |
|
|
|
1.91 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Loss (gain) from assets sales and disposal |
|
(0.04 |
) |
|
|
0.00 |
|
|
|
(0.02 |
) |
|
|
— |
|
|
|
— |
|
Acquisition costs |
|
— |
|
|
|
0.01 |
|
|
|
— |
|
|
|
0.00 |
|
|
|
— |
|
Non cash interest expense |
|
0.03 |
|
|
|
0.03 |
|
|
|
0.04 |
|
|
|
0.04 |
|
|
|
0.06 |
|
Unrealized losses (gains) |
|
— |
|
|
|
0.00 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Currency fluctuation related to lease standard |
|
(0.02 |
) |
|
|
0.01 |
|
|
|
(0.04 |
) |
|
|
(0.03 |
) |
|
|
(0.05 |
) |
Loss (gain) from sale of investment in privately-held company |
|
(0.13 |
) |
|
|
0.00 |
|
|
|
— |
|
|
|
— |
|
|
|
0.01 |
|
Income tax adjustment |
|
0.00 |
|
|
|
(0.12 |
) |
|
|
(0.07 |
) |
|
|
(0.06 |
) |
|
|
(0.19 |
) |
Net diluted earnings (loss) per share (Non-GAAP) |
$ |
0.91 |
|
|
$ |
2.86 |
|
|
$ |
2.90 |
|
|
$ |
2.62 |
|
|
$ |
(0.55 |
) |
|
|
|
|
|
|
|
|
|
|
||||||||||
Number of shares used in computing net diluted earnings (loss) per share (GAAP) |
|
58,747,538 |
|
|
|
58,734,719 |
|
|
|
59,193,831 |
|
|
|
59,183,666 |
|
|
|
56,671,504 |
|
Stock-based compensation |
|
784,228 |
|
|
|
1,237,266 |
|
|
|
939,571 |
|
|
|
986,527 |
|
|
|
0 |
|
Number of shares used in computing net diluted earnings (loss) per share (Non-GAAP) |
|
59,531,766 |
|
|
|
59,971,985 |
|
|
|
60,133,402 |
|
|
|
60,170,193 |
|
|
|
56,671,504 |
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20231101275481/en/
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investors@solaredge.com
Sapphire Investor Relations, LLC
investors@solaredge.com
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