Slide 1: Third Quarter 2023 Earnings Summary
Third Quarter 2023 Earnings Summary
Slide 2: Safe Harbor
Safe Harbor Use of Forward-Looking Statements and Non-GAAP Measures This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include information, among other things, concerning: our possible or
Slide 3: Key Metrics
273.9K 3.3M Power Optimizers Inverters Shipped Shipped Q3/2023 Key 121.1MW/h Batteries Capacity Shipped Metrics 3.8GW $725.3M Systems Shipped GAAP Revenues 3
Slide 4: Third Quarter Financial Results
Third Quarter Financial Results GAAP revenues of $725.3M Revenues from solar segment of $676.4M Revenues from “all other” segment of $48.7M GAAP gross margin of 19.7% Non-GAAP gross margin* of 20.8% Gross margin from sales of solar segment 24.0% Non-GAAP operating income* of $23.1M Operating income
Slide 5: Noteworthy
Noteworthy GAAP revenues of $725.3 million, down 27% q/q and down 13% from the same quarter last year Shipments of more than 3.8 GW of inverters Shipments of 121 MWh of residential batteries Initial inverter shipments from first U.S. manufacturing facility First shipments of new 330 KW inverter to t
Slide 6: Quarterly GAAP Financial Results
Quarterly GAAP Financial Results USD in millions* Q3 22 Q2 23 Q3 23 GAAP Revenues 836.7 991.3 725.3 GAAP Gross margin 26.5% 32.0% 19.7% GAAP Operating expenses 137.6 166.9 159.5 GAAP Operating income (loss) 84.4 150.4 (16.7) GAAP Net income (loss) 24.7 119.5 (61.2) GAAP Net diluted income (loss) per
Slide 7: Quarterly Non-GAAP Financial Results
Quarterly Non-GAAP Financial Results** USD in millions* Q3 22 Q2 23 Q3 23 Non-GAAP Revenues 836.6 991.1 725.1 Non-GAAP Gross margin 27.3% 32.7% 20.8% Non-GAAP Operating expenses 108.3 133.3 128.0 Non-GAAP Operating income 120.2 191.0 23.1 Non-GAAP Net income (loss) 54.1 157.4 (31.0) Non-GAAP Net dil
Slide 8: Units Shipped by Quarter
Units Shipped by Quarter Power optimizers Inverters 6,674 6,441 329.7 334.6 6,123 315.3 5,724 5,531 264.5 273.9 5,123 5,215 4,699 230.8 228.4 211.1 197.3 3,266 Q3-21 Q4-21 Q1-22 Q2-22 Q3-22 Q4-22 Q1-23 Q2-23 Q3-23 Q3-21 Q4-21 Q1-22 Q2-22 Q3-22 Q4-22 Q1-23 Q2-23 Q3-23 units in thousands
Slide 9: Quarterly GAAP Revenues
Quarterly GAAP Revenues 991.3 943.9 890.7 836.7 725.3 Q3-22 Q4-22 Q1-23 Q2-23 Q3-23 in USD millions
Slide 10: Gross Margin by Quarter
Gross Margin by Quarter GAAP Non-GAAP* 31.8% 32.0% 32.6% 32.7% 29.3% 30.2% 26.5% 27.3% 20.8% 19.7% Q3-22 Q4-22 Q1-23 Q2-23 Q3-23 Q3-22 Q4-22 Q1-23 Q2-23 Q3-23 * Non-GAAP financial measures; see reconciliation in Appendix
Slide 11: Solar Segment Gross Margin by Quarter
Solar Segment Gross Margin by Quarter 35.0% 34.7% 32.4% 28.3% 24.0% Q3-22 Q4-22 Q1-23 Q2-23 Q3-23 % of Revenues
Slide 12: Consolidated Operating Expenses by Quarter
Consolidated* Operating Expenses by Quarter GAAP Non-GAAP** 29.9% 17.6% 4.5% 12.9% 22.0% 13.4% 13.1% 13.4% 12.9% 2.4% 2.5% 2.8% 5.4% 3.0% 16.4% 16.5% 16.8% 4.5% 3.3% 3.4% 3.9% 3.7% 3.9% 3.6% 5.6% 4.0% 3.5% 5.1% 4.8% 4.3% 4.5% 8.7% 11.0% 6.6% 6.9% 6.6% 7.0% 8.3% 8.9% 8.5% 8.7% (0.3%) (0.2%) Q3-22 Q4-
Slide 13: Consolidated Operating Income by Quarter
Consolidated* Operating Income by Quarter Non-GAAP** GAAP 183.8 191.0 144.2 150.4 149.6 120.2 84.4 23.1 (5.2) (16.7) Q3-22 Q4-22 Q1-23 Q2-23 Q3-23 Q3-22 Q4-22 Q1-23 Q2-23 Q3-23 * For purposes of this presentation, “consolidated” refers to both solar and “all other” segments ** Non-GAAP financial mea
Slide 14: Consolidated Net Income by Quarter
Consolidated* Net Income by Quarter GAAP Non-GAAP** 171.5 174.5 157.4 138.4 119.5 54.1 24.7 20.8 (31.0) (61.2) Q3-22 Q4-22 Q1-23 Q2-23 Q3-23 Q3-22 Q4-22 Q1-23 Q2-23 Q3-23 * For purposes of this presentation, “consolidated” refers to both solar and “all other” segments ** Non-GAAP financial measures;
Slide 15: Balance Sheet & Cash flow
Balance Sheet & Cash flow USD in millions Q3 22 Q2 23 Q3 23 Cash and investments 1,571.3 1,487.0 1,464.8 Total Debt 633.7 633.5 633.5 Cash and Investments Net of Debt 937.6 853.5 831.4 Inventory 561.4 984.2 1,177.8 Capital Expenditures, Net 31.5 45.3 45.7 Cash Flow From (used in) Operations 5.6 (88.
Slide 16: Fourth Quarter Guidance
Fourth Quarter Guidance** 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 mil
Slide 17: Appendix
Appendix
Slide 18: Reconciliation of GAAP to Non-GAAP
Reconciliation of GAAP to Non-GAAP Reconciliation of GAAP to Non-GAAP Gross Profit Three months ended 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 5,9
Slide 19: Reconciliation of GAAP to Non-GAAP
Reconciliation of GAAP to Non-GAAP Reconciliation of GAAP to Non-GAAP Operating expenses Three months ended Q3-22 Q4-22 Q1-23 Q2-23 Q3-23 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 compensa
Slide 20: Reconciliation of GAAP to Non-GAAP
Reconciliation of GAAP to Non-GAAP Reconciliation of GAAP to Non-GAAP Financial income (expenses), net Three months ended Q3-22 Q4-22 Q1-23 Q2-23 Q3-23 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 losse
Slide 21: Reconciliation of GAAP to Non-GAAP
Reconciliation of GAAP to Non-GAAP Reconciliation of GAAP to Non-GAAP Net income (loss) Three months ended 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 38,60
Slide 22: Reconciliation of GAAP to Non-GAAP
Reconciliation of GAAP to Non-GAAP Reconciliation of GAAP to Non-GAAP Net basic earning (loss) per share Three months ended Q3-22 Q4-22 Q1-23 Q2-23 Q3-23 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 compe
Slide 23: Reconciliation of GAAP to Non-GAAP
Reconciliation of GAAP to Non-GAAP Reconciliation of GAAP to Non-GAAP Net diluted earnings (loss) per share Three months ended 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-base
Slide 24: Thank You
Thank You