Slide 1: Second Quarter 2021 Earnings Summary
Second Quarter 2021 Earnings Summary August 2, 2021
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: the expected impact of the COVID-19 pa
Slide 3: Second Quarter Key Metrics
Second Quarter Key Metrics 179.5K 1.64 GW Inverters Shipped 5.0M Systems Shipped Power Optimizers Shipped $480.1M GAAP Revenues 3
Slide 4: Financial Results for Quarter
Financial Results for Quarter Record GAAP revenue of $480.1 million Record revenue from solar segment of $431.5 million Record revenues from non- solar segment of $48.6 million GAAP gross margin of 32.5% Non-GAAP gross margin of 33.9% Gross margin from sales of solar segment 37.4% Non-GAAP operating
Slide 5: Noteworthy
Noteworthy Record revenues overall in both solar and non solar segments Record revenues in Europe overall driven by record revenues in the Netherlands, Italy, Poland, Austria and Switzerland Initiated battery shipments to the United States and Europe, ramping production in Q3 Continued strong demand
Slide 6: GAAP Quarterly Financial Results
GAAP Quarterly Financial Results *USD in millions Q2 20 Q1 21 Q2 21 Revenues 331.9 405.5 480.1 Gross margin 31.0% 34.5% 32.5% Operating expenses 73.0 95.9 100.6 Operating income 30.0 44.1 55.6 Net income 36.7 30.1 45.1 Net diluted earnings per share 0.70 0.55 0.82 * With the exception of gross margi
Slide 7: NON-GAAP Quarterly Financial Results
NON-GAAP Quarterly Financial Results *USD in millions Q2 20 Q1 21 Q2 21 Revenues 331.9 405.4 480.0 Gross margin 32.4% 36.5% 33.9% Operating expenses 61.1 76.2 81.5 Operating income 46.6 71.9 81.3 Net income 52.1 55.5 72.5 Net diluted earnings per share 0.97 0.98 1.28 * With the exception of gross ma
Slide 8: Units Shipped
Units Shipped Power optimizers shipped Inverters shipped K Units K Units 5,500 220 5,060 5,011 202.0 5,000 4,587 200 187.9 186.8 4,454 181.9 179.5 4,500 180 160.1 165.7 4,000 3,731 160 152.5 3,516 3,272 3,614 3,735 141.7 3,500 140 3,000 120 2,500 100 2,000 80 1,500 60 1,000 40 500 20 - 0 Q2 19 Q3 19
Slide 9: Quarterly Revenue GAAP
Quarterly Revenue GAAP USD Millions 450 400 350 3319 300 250 200 150 100 50 0 Q2 20 338.1 Q3 20 358.1 Q4 20 405.5 Qi2i 480.1 Q221 solar
Slide 10: Gross Margin Trend by Quarters (%)
Gross Margin Trend by Quarters (%) GAAP Non-GAAP 40% 40% 36.5% 35% 34.5% 35% 33.5% 33.9% 32.5% 32.4% 32.5% 31.0% 32.0% 30.8% 30% 30% 25% 25% 20% 20% 15% 15% 10 % 10% 5% 5% 0% 0% Q2 20 Q3 20 Q4 20 Q1 21 Q2 21 Q2 20 Q3 20 Q4 20 Q1 21 Q2 21 10
Slide 11: Solar Segment Gross Margin Trend by Quarters (%)
Solar Segment Gross Margin Trend by Quarters (%) 45 39.7% 40 37.4% 34.8% 36.2% 33.8% 35 30 25 20 15 10 5 0 Q2 20 Q3 20 Q4 20 Q1 21 Q2 21 11
Slide 12: Consolidated Operating Expenses
Consolidated Operating Expenses GAAP Non-GAAP 28.0% 26.8% 28.0% 23.7% 22.0% 23.0% 5.0% 23.0% 0.5% 21.0% 23.0% 4.4% 20.4% 4.9% 18.7% 18.8% 4.2% 18.4% 4.0% 17.0% 18.0% 8.1% 18.0% 4.0% 3.5% 3.5% 4.1% 6.5% 6.7% 3.2% 6.3% 6.2% 13.0% 13.0% 5.6% 5.2% 5.2% 5.2% 4.9% 8.0% 8.0% 12.1% 13.3% 11.5% 11.6% 11.0% 1
Slide 13: Consolidated Operating Income
Consolidated Operating Income GAAP Non-GAAP 90 90 81.3 80 80 71.9 70 70 60 55.6 60 50.0 50 44.1 50 46.6 43.5 40 40 30 30.4 30 30 20 14.4 20 10 10 0 0 Q2 20 Q3 20 Q4 20 Q1 21 Q2 21 Q2 20 Q3 20 Q4 20 Q1 21 Q2 21 USD Millions 13
Slide 14: Consolidated Net Income
Consolidated Net Income GAAP Non-GAAP 100 100 90 90 80 80 72.5 70 70 65.9 60 55.7 60 55.5 45.1 52.1 50 43.8 50 36.7 40 30.1 40 30 30 17.7 20 20 10 10 0 0 Q2 20 Q3 20 Q4 20 Q1 21 Q2 21 Q2 20 Q3 20 Q4 20 Q1 21 Q2 21 USD Millions 14
Slide 15: Balance Sheet & Cash flow
Balance Sheet & Cash flow USD in millions Q2 20 Q1 21 Q2 21 Cash and investments 592.7 1,165.2 1,143.2 Total Debt* 15.3 650.0 633.9 Cash and Investments Net 577.4 515.2 509.3 of Debt Inventory 264.5 340.0 321.9 Capital Expenditures 26.4 24.0 40.7 Cash Flow From Operations 59.3 24.1 38.7 * The majori
Slide 16: Third Quarter Guidance
Third Quarter Guidance Revenue to be within the range of $520 million to $540 million; Non-GAAP gross margin expected to be within the range of 32% to 34%; Revenue from solar segment to be within the range of $460 million to $480 million; Gross margin from sale of solar segment expected to be within
Slide 17: Appendix
Appendix solar,
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 Six months ended June 30, 2021 March 31, 2021 June 30, 2020 June 30, 2021 June 30, 2020 Gross profit (GAAP) 156,192 140,074 102,963 296,266 242,971 Revenues from finance component (99) (86) ---- (18
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 Six months ended June 30, 2021 March 31, 2021 June 30, 2020 June 30, 2021 June 30, 2020 Operating expenses (GAAP) 100,633 95,946 72,998 196,579 145,231 Stock-based compensation - R&D (9,805) (
Slide 20: 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 Six months ended June 30, 2021 March 31, 2021 June 30, 2020 June 30, 2021 June 30, 2020 Financial expenses (income), net (GAAP) 1,743 6,097 (11,565) 7,840 5,040 Notes due 2025 (7
Slide 21: Reconciliation of GAAP to Non-GAAP
Reconciliation of GAAP to Non-GAAP Reconciliation of GAAP to Non-GAAP Net income Three months ended Six months ended June 30, 2021 March 31, 2021 June 30, 2020 June 30, 2021 June 30, 2020 Net income (GAAP) 45,092 30,076 36,668 75,168 78,916 Revenues from finance component (99) (86) ---- (185) ---- C
Slide 22: Reconciliation of GAAP to Non-GAAP
Reconciliation of GAAP to Non-GAAP Reconciliation of GAAP to Non-GAAP Net basic EPS Three months ended Six months ended June 30, 2021 March 31, 2021 June 30, 2020 June 30, 2021 June 30, 2020 Net basic earnings per share (GAAP) 0.87 0.58 0.74 1.45 1.59 Revenues from finance component (0.01) 0.00 ----
Slide 23: Reconciliation of GAAP to Non-GAAP
Reconciliation of GAAP to Non-GAAP Reconciliation of GAAP to Non-GAAP Net diluted EPS Three months ended Six months ended June 30, 2021 March 31, 2021 June 30, 2020 June 30, 2021 June 30, 2020 Net diluted earnings per share (GAAP) 0.82 0.55 0.70 1.36 1.51 Revenues from finance component (0.01) 0.00
Slide 24: NASDAQ | SEDG
NASDAQ | SEDG solar,