Slide 1: SolarEdge Technologies
SolarEdge Technologies Nasdaq l SEDG 6.6 MW, Gound mount, Windach, Germany Installed by Feneco
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 Q4/2023
73.7K 2.2M Power Optimizers Inverters Shipped Shipped Key Metrics 132.9MW/h Q4/2023 Batteries Capacity Shipped 0.9GW $316.0M Systems Shipped GAAP Revenues 3
Slide 4: Key Metrics 2023
1.0M 17.4M Power Optimizers Inverters Shipped Shipped Key Metrics 744.3MW/h 2023 Batteries Capacity Shipped 12.6GW $3.0B Systems Shipped GAAP Revenues 4
Slide 5: Fourth Quarter Financial Results
Fourth Quarter Financial Results GAAP revenues of $316.0M GAAP net loss of $(162.4)M Revenues from solar segment of $282.4M Non-GAAP net loss* of $(52.5)M Revenues from energy storage and “all other” GAAP net diluted loss per share of $(2.85) segments of $33.5M Non-GAAP net diluted loss per share* o
Slide 6: 2023 Financial Results
2023 Financial Results GAAP revenue of $3.0 billion Operating income of solar segment Revenue from solar segment of $364.5 million of $2.8 billion GAAP net income of $34.3 million Revenues from energy and “all other” segment Non-GAAP net income of $248.4 million of $160.2 million GAAP net diluted ea
Slide 7: Quarterly GAAP Financial Results
Quarterly GAAP Financial Results USD in millions* Q4 22 Q3 23 Q4 23 GAAP Revenues 890.7 725.3 316.0 GAAP Gross margin 29.3% 19.7% (17.9%) GAAP Operating expenses 266.2 159.5 181.2 GAAP Operating income (loss) (5.2) (16.7) (237.6) GAAP Net income (loss) 20.8 (61.2) (162.4) GAAP Net diluted income (lo
Slide 8: Annual GAAP Financial Results
Annual GAAP Financial Results USD in millions* 2021 2022 2023 GAAP Revenues 1,963.9 3,110.3 2,976.5 GAAP Gross margin 32.0% 27.2% 23.6% GAAP Operating expenses 422.2 678.5 663.6 GAAP Operating income 207.1 166.1 40.2 GAAP Net income 169.2 93.8 34.3 GAAP Net diluted income per share 3.06 1.65 0.60 *
Slide 9: Quarterly Non-GAAP Financial Results
Quarterly Non-GAAP Financial Results** USD in millions* Q4 22 Q3 23 Q4 23 Non-GAAP Revenues 890.5 725.1 315.8 Non-GAAP Gross margin 30.2% 20.8% 3.3% Non-GAAP Operating expenses 119.0 128.0 118.3 Non-GAAP Operating income (loss) 149.6 23.1 (107.8) Non-GAAP Net income (loss) 171.5 (31.0) (52.5) Non-GA
Slide 10: Annual Non-GAAP Financial Results
Annual Non-GAAP Financial Results** USD in millions* 2021 2022 2023 Non-GAAP Revenues 1,963.4 3,109.7 2,975.7 Non-GAAP Gross margin 33.5% 28.2% 26.7% Non-GAAP Operating expenses 335.6 435.9 503.1 Non-GAAP Operating income 321.4 441.7 290.0 Non-GAAP Net income 272.9 351.2 248.4 Non-GAAP Net diluted i
Slide 11: Units Shipped by Quarter
Units Shipped by Quarter Power optimizers Inverters 6,674 329.7 334.6 6,441 315.3 6,123 5,724 5,531 264.5 273.9 5,123 5,215 228.4 211.1 197.3 3,266 2,192 73.7 Q4-21 Q1-22 Q2-22 Q3-22 Q4-22 Q1-23 Q2-23 Q3-23 Q4-23 Q4-21 Q1-22 Q2-22 Q3-22 Q4-22 Q1-23 Q2-23 Q3-23 Q4-23 units in thousands
Slide 12: Annual Units Shipped
Annual Units Shipped Power optimizers Inverters 1,019.3 1,011.9 23,736 18,568 789.6 17,430 15,801 15,462 665.5 661.9 2019 2020 2021 2022 2023 2019 2020 2021 2022 2023 units in thousands
Slide 13: Quarterly GAAP Revenues
Quarterly GAAP Revenues 991.3 943.9 890.7 725.3 316.0 Q4-22 Q1-23 Q2-23 Q3-23 Q4-23 in USD millions
Slide 14: Annual GAAP Revenues
Annual GAAP Revenues 3,110.3 2,976.5 1,963.9 2021 2022 2023 in USD millions
Slide 15: Gross Margin by Quarter
Gross Margin by Quarter GAAP Non-GAAP* 31.8% 32.0% 29.3% 32.6% 32.7% 3.5 30.2% 3.0 19.7% 2.5 20.8% 2.0 1.5 1.0 3.3% 0.5 0.0 (17.9%) Q4-22 Q1-23 Q2-23 Q3-23 Q4-23 Q4-22 Q1-23 Q2-23 Q3-23 Q4-23 * Non-GAAP financial measures; see reconciliation in Appendix
Slide 16: Annual Gross Margin
Annual Gross Margin GAAP Non-GAAP* 32.0% 33.5% 27.2% 28.2% 26.7% 23.6% 2021 2022 2023 2021 2022 2023 * Non-GAAP financial measures; see reconciliation in Appendix
Slide 17: Solar Segment Gross Margin by Quarter
Solar Segment Gross Margin by Quarter 35.0% 34.7% 32.4% 24.0% 4.0% Q4-22 Q1-23 Q2-23 Q3-23 Q4-23 % of Revenues
Slide 18: Annual Solar Segment Gross Margin
Annual Solar Segment Gross Margin 36.4% 29.8% 29.2% 2021 2022 2023 % of Revenues
Slide 19: Consolidated Operating Expenses by Quarter
Consolidated* Operating Expenses by Quarter GAAP Non-GAAP** 57.3% 37.5% 10.4% 8.9% 11.0% 9.9% 29.9% 12.3% 17.6% 12.9% 22.0% 4.5% 13.4% 13.1% 13.4% 16.5% 16.8% 5.4% 2.5% 2.8% 3.0% 4.5% 3.4% 3.9% 3.7% 18.7% 5.6% 3.9% 3.5% 3.6% 4.8% 4.3% 4.5% 23.7% 11.0% 6.9% 7.0% 8.7% 8.9% 8.5% 8.7% 6.6% (0.2%) Q4-22
Slide 20: Annual Consolidated Operating Expenses
Annual Consolidated* Operating Expenses GAAP Non-GAAP** 21.5% 21.8% 22.3% 17.1% 16.9% 0.1% 1.1% 3.7% 3.4% 4.2% 14.0% 3.9% 4.9% 3.6% 2.7% 6.1% 4.9% 5.5% 4.4% 5.1% 4.1% 11.2% 10.8% 8.8% 8.5% 9.3% 7.2% 2021 2022 2023 2021 2022 2023 R&D S&M G&A Non - Reccuring Event R&D S&M G&A * For purposes of this pr
Slide 21: Consolidated Operating Income (loss) by Quarter
Consolidated* Operating Income (loss) by Quarter Non-GAAP** GAAP 183.8 191.0 144.2 150.4 149.6 (5.2) 23.1 (16.7) (107.8) (237.6) Q4-22 Q1-23 Q2-23 Q3-23 Q4-23 Q4-22 Q1-23 Q2-23 Q3-23 Q4-23 * For purposes of this presentation, “consolidated” refers to solar, energy storage, and “all other” segments *
Slide 22: Annual Consolidated Operating Income
Annual Consolidated* Operating Income Non-GAAP** GAAP 207.1 441.7 166.1 321.4 290.0 40.2 2021 2022 2023 2021 2022 2023 * For purposes of this presentation, “consolidated” refers to solar, energy storage, and “all other” segments ** Non-GAAP financial measures; see reconciliation in Appendix
Slide 23: Consolidated Net Income (loss) by Quarter
Consolidated* Net Income (loss) by Quarter GAAP Non-GAAP** 171.5 174.5 157.4 138.4 119.5 20.8 (61.2) (31.0) (52.5) (162.4) Q4-22 Q1-23 Q2-23 Q3-23 Q4-23 Q4-22 Q1-23 Q2-23 Q3-23 Q4-23 * For purposes of this presentation, “consolidated” refers to solar, energy storage, and “all other” segments ** Non-
Slide 24: Annual Consolidated Net Income
Annual Consolidated* Net Income GAAP Non-GAAP** 169.2 351.2 272.9 248.4 93.8 34.3 2021 2022 2023 2021 2022 2023 * For purposes of this presentation, “consolidated” refers to solar, energy storage, and “all other” segments ** Non-GAAP financial measures; see reconciliation in Appendix
Slide 25: Balance Sheet & Cash flow
Balance Sheet & Cash flow USD in millions Q4 22 Q3 23 Q4 23 Cash and investments 1,671.6 1,464.8 1,268.2 Total Debt 633.6 633.5 633.5 Cash and Investments Net of Debt 1,038.0 831.4 634.7 Inventory 729.2 1,177.8 1,443.4 Capital Expenditures, Net 43.6 45.7 40.7 Cash Flow From (used in) Operations 111.
Slide 26: First Quarter Guidance
First Quarter Guidance 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 rang
Slide 27: Appendix
Appendix 5MW Floating PV, Mitzpe Ramon, Israel Installed by EnerT
Slide 28: Reconciliation of GAAP to Non-GAAP
Reconciliation of GAAP to Non-GAAP Reconciliation of GAAP to Non-GAAP Three months ended December 31, 2023 September 30, 2023 June 30, 2023 March 31, 2023 December 31, 2022 Gross profit (GAAP) (56,425) 142,817 317,305 300,126 261,047 Revenues from finance component (230) (215) (202) (187) (174) Disc
Slide 29: Reconciliation of GAAP to Non-GAAP
Reconciliation of GAAP to Non-GAAP Reconciliation of GAAP to Non-GAAP Year ended December 31, 2023 December 31, 2022 December 31, 2021 Gross profit (GAAP) 703,823 844,648 629,318 Revenues from finance component (834) (614) (418) Discontinued operation 36,648 4,314 ---- Stock-based compensation 23,20
Slide 30: Reconciliation of GAAP to Non-GAAP
Reconciliation of GAAP to Non-GAAP Reconciliation of GAAP to Non-GAAP Operating expenses Three months ended December 31, 2023 September 30, 2023 June 30, 2023 March 31, 2023 December 31, 2022 Operating expenses (GAAP) 181,156 159,543 166,947 155,972 266,210 Stock-based compensation - R&D (15,982) (1
Slide 31: Reconciliation of GAAP to Non-GAAP
Reconciliation of GAAP to Non-GAAP Reconciliation of GAAP to Non-GAAP Operating expenses Year ended December 31, 2023 December 31, 2022 December 31, 2021 Operating expenses (GAAP) 663,618 678,528 422,179 Stock-based compensation - R&D (66,944) (63,211) (45,424) Stock-based compensation - S&M (30,987
Slide 32: Reconciliation of GAAP to Non-GAAP
Reconciliation of GAAP to Non-GAAP Reconciliation of GAAP to Non-GAAP Financial income (expense), net Three months ended December 31, 2023 September 30, 2023 June 30, 2023 March 31, 2023 December 31, 2022 Financial income (expense), net (GAAP) 22,055 (7,901) 3,384 23,674 55,812 Non cash interest exp
Slide 33: Reconciliation of GAAP to Non-GAAP
Reconciliation of GAAP to Non-GAAP Reconciliation of GAAP to Non-GAAP Financial income (expense), net Year ended December 31, 2023 December 31, 2022 December 31, 2021 Financial income (expense), net (GAAP) 41,212 3,750 (19,915) Non cash interest expense 12,703 9,954 8,674 Unrealized losses (gains) -
Slide 34: Reconciliation of GAAP to Non-GAAP
Reconciliation of GAAP to Non-GAAP Reconciliation of GAAP to Non-GAAP Net income (loss) Three months ended December 31, 2023 September 30, 2023 June 30, 2023 March 31, 2023 December 31, 2022 Net income (loss) (GAAP) (162,383) (61,176) 119,510 138,378 20,829 Revenues from finance component (230) (215
Slide 35: Reconciliation of GAAP to Non-GAAP
Reconciliation of GAAP to Non-GAAP Reconciliation of GAAP to Non-GAAP Net income (loss) Year ended December 31, 2023 December 31, 2022 December 31, 2021 Net income (loss) (GAAP) 34,329 93,779 169,170 Revenues from finance component (834) (614) (418) Discontinued operation 37,036 4,314 ---- Stock-bas
Slide 36: Reconciliation of GAAP to Non-GAAP
Reconciliation of GAAP to Non-GAAP Reconciliation of GAAP to Non-GAAP Net basic earnings (loss) Three months ended December 31, 2023 September 30, 2023 June 30, 2023 March 31, 2023 December 31, 2022 Net basic earnings (loss) per share (GAAP) (2.85) (1.08) 2.12 2.46 0.37 Revenues from finance compone
Slide 37: Reconciliation of GAAP to Non-GAAP
Reconciliation of GAAP to Non-GAAP Reconciliation of GAAP to Non-GAAP Net basic earnings (loss) Year ended December 31, 2023 December 31, 2022 December 31, 2021 Net basic earnings (loss) per share (GAAP) 0.61 1.70 3.24 Revenues from finance component (0.02) (0.01) (0.01) Discontinued operation 0.66
Slide 38: Reconciliation of GAAP to Non-GAAP
Reconciliation of GAAP to Non-GAAP Reconciliation of GAAP to Non-GAAP Net diluted earnings (loss) Three months ended December 31, 2023 September 30, 2023 June 30, 2023 March 31, 2023 December 31, 2022 Net diluted earnings (loss) per share (GAAP) (2.85) (1.08) 2.03 2.35 0.36 Revenues from finance com
Slide 39: Reconciliation of GAAP to Non-GAAP
Reconciliation of GAAP to Non-GAAP Reconciliation of GAAP to Non-GAAP Net diluted earnings (loss) Year ended December 31, 2023 December 31, 2022 December 31, 2021 Net diluted earnings (loss) per share (GAAP) 0.60 1.65 3.06 Revenues from finance component (0.01) (0.01) (0.01) Discontinued operation 0
Slide 40: Thank You
re Le) ie) 7)