Slide 1: First Quarter 2019 Earnings Summary
First Quarter 2019 Earnings Summary May 6, 2019
Slide 2: Safe Harbor
Safe Harbor Use of Forward-Looking Statements 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 assumed future results
Slide 3: Key Metrics
Key Metrics 3.0M 131K 1.1 GW $271.9M Power Optimizers Shipped Inverters Shipped Systems Shipped Revenues 3
Slide 4: Financial Results for Quarter
Financial Results for Quarter Record revenue of $271.9 million, up 29.5% YoY Revenue from solar products $253.1 million GAAP gross margin of 31.7% Non-GAAP gross margin 32.8% GAAP operating income of $28.0 million Non-GAAP operating income of $41.2 million GAAP net income of $19.0 million Non-GAAP n
Slide 5: Noteworthy
Noteworthy Record revenues and continued strong cash generation from operations Geographic spread of revenues continues, with 53% generated outside the U.S. Improved gross margin for solar business More than one million PV systems monitored in SolarEdge monitoring portal Establishing additional manu
Slide 6: GAAP Financial Results
GAAP Financial Results *USD in millions Q1 18 Q4 18 Q1 19 Revenues 209.9 263.7 271.9 Gross margin 37.9% 30.2% 31.7% Operating expenses 38.8 55.3 58.1 Operating income 40.8 24.4 28.0 Net income 35.7 12.9 19.0 Net diluted earnings per share** 0.75 0.27 0.39 *With the exception of gross margin and per
Slide 7: NON-GAAP Financial Results
NON-GAAP Financial Results *USD in millions Q1 18 Q4 18 Q1 19 Revenues 209.9 263.7 271.9 Gross margin 38.4% 30.9% 32.8% Operating expenses 32.9 45.1 48.0 Operating income 47.6 36.4 41.2 Net income 42.5 31.5 32.9 Net diluted earnings per share ** 0.87 0.63 0.64 *With the exception of gross margin and
Slide 8: Units Shipped
Units Shipped Power optimizers shipped Inverters shipped 8
Slide 9: Quarterly Revenues
Quarterly Revenues USD Millions 300 263.7 250 2271 236.6 209.9 200 150 100 50 Qii8 Q218 Q318 Q418 Qi19 9 solar
Slide 10: GAAP Gross Margins Trend by Quarters (%)
GAAP Gross Margins Trend by Quarters (%) 10
Slide 11: Non-GAAP Gross Margins Trend by Quarters (%)
Non-GAAP Gross Margins Trend by Quarters (%) 11
Slide 12: Operating Expenses
Operating Expenses 25.0% 20.0% 15.0% 10.0% 5.0% 0.0% 12 21.0% 21.4% 18.5% 18.2% 18.6% G&A 17% 73% 74% SA 7.0% 7.2% = S&M R&D Qi 18 Q2 18 Q3.18 Q418 Qi 19 solar,
Slide 13: Consolidated GAAP Operating Income
Consolidated GAAP Operating Income 13
Slide 14: Consolidated NON-GAAP Operating Income
Consolidated NON-GAAP Operating Income 14
Slide 15: Consolidated GAAP Net Income
Consolidated GAAP Net Income * Q1-18, and Q3-18 include transition tax of $0.8M and a tax benefit of $10.3M respectively. 15 Q4-18 includes provisional tax expense of $8.2M.
Slide 16: Consolidated NON-GAAP Net Income
Consolidated NON-GAAP Net Income 16
Slide 17: Balance Sheet & Cash flow
Balance Sheet & Cash flow USD in millions Q1 18 Q4 18 Q1 19 Cash and investments 400.8 392.2 398.7 Inventory 98.4 141.5 150.8 Capital Expenditures 11.3 8.6 10.6 Total Debt - 20.2 24.3 Cash Flow From Operations 64.0 46.9 56.5 *Debt balances relate to pre acquisition loans in Kokam and SMRE 17
Slide 18: Second Quarter Guidance
Second Quarter Guidance Revenues to be within the range of $310 million to $320 million; Gross margins expected to be within the range of 32% to 34% Revenues from solar products to be within the range of $290 million to $300 million; Gross margins from sale of solar products expected to be within th
Slide 19: Appendix
Appendix solar,
Slide 20: Reconciliation of GAAP to Non-GAAP
Reconciliation of GAAP to Non-GAAP Reconciliation of GAAP to Non-GAAP Gross Profit Three months ended March 31, 2019 December 31, 2018 March 31, 2018 Gross profit (GAAP) 86,110 79,711 79,597 Stock-based compensation 1,354 1,323 924 Cost of product adjustment 682 398 ---- Intangible assets amortizati
Slide 21: Reconciliation of GAAP to Non-GAAP
Reconciliation of GAAP to Non-GAAP Reconciliation of GAAP to Non-GAAP Operating expenses Three months ended March 31, 2019 December 31, 2018 March 31, 2018 Operating expenses (GAAP) 58,062 55,322 38,833 Stock-based compensation R&D (3,490) (3,230) (2,382) Stock-based compensation S&M (2,404) (2,564)
Slide 22: Reconciliation of GAAP to Non-GAAP
Reconciliation of GAAP to Non-GAAP Reconciliation of GAAP to Non-GAAP Financial expenses (income), net Three months ended March 31, 2019 December 31, 2018 March 31, 2018 Financial expenses (income), net (GAAP) 6,151 (288) 584 Non cash interest (785) (769) 512 Currency fluctuation due to new lease st
Slide 23: Reconciliation of GAAP to Non-GAAP
Reconciliation of GAAP to Non-GAAP Reconciliation of GAAP to Non-GAAP Net income attributable to Solaredge Technologies Inc. Three months ended March 31, 2019 December 31, 2018 March 31, 2018 Net income attributable to Solaredge Technologies Inc. (GAAP) 19,016 12,936 35,686 Cost of product adjustmen
Slide 24: Reconciliation of GAAP to Non-GAAP
Reconciliation of GAAP to Non-GAAP Reconciliation of GAAP to Non-GAAP Net basic EPS Three months ended March 31, 2019 December 31, 2018 March 31, 2018 Net basic earnings per share (GAAP) 0.40 0.28 0.81 Cost of product adjustment 0.02 0.01 ---- Stock-based compensation 0.21 0.19 0.15 Intangible asset
Slide 25: Reconciliation of GAAP to Non-GAAP
Reconciliation of GAAP to Non-GAAP Reconciliation of GAAP to Non-GAAP No. of shares used in Net diluted EPS Three months ended March 31, 2019 December 31, 2018 March 31, 2018 Number of shares used in computing net diluted earnings per share (GAAP) 47,020,218 47,637,478 47,673,522 Stock-based compens
Slide 26: NASDAQ | SEDG
NASDAQ | SEDG solar,