Slide 1: Fourth Quarter 2019 Earnings Summary
Fourth Quarter 2019 Earnings Summary February 19, 2020
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 4.5M 187K 1.6 GW $418.2M Power Optimizers Shipped Inverters Shipped Systems Shipped Revenues 3
Slide 4: Financial Results for Quarter
Financial Results for Quarter Record revenue of $418.2 million, up 58.6% YoY Record revenue from solar products of $389.0 million GAAP gross margin of 34.3% Non-GAAP gross margin of 35.5% Non-GAAP gross margin for the solar business of 37.8% GAAP operating income of $50.5 million Non-GAAP operating
Slide 5: 2019 Highlights
2019 Highlights Record revenue of $1.4 billion, up 52.1% YoY Record revenue form solar products $1.3 billion up 46.2% YoY GAAP gross margin of 33.6% Record GAAP operating income of $189.9 million Record GAAP net income of $146.5 million Record Non-GAAP net income of $233.2 million Record cash flow f
Slide 6: Noteworthy
Noteworthy Record revenues, record GAAP and Non-GAAP net income and record Non-GAAP net diluted EPS for Q and year Sequential revenue growth of more than 50% YoY and increased profitability Record cash generation from operations for Q and full year Corona virus not affecting expected deliveries in Q
Slide 7: GAAP Financial Results
GAAP Financial Results *USD in millions Q4 18 Q3 19 Q4 19 Revenues 263.7 410.6 418.2 Gross margin 30.2% 33.9% 34.3% Operating expenses 55.8 73.3 ** 92.7 ** Operating income 24.0 66.0 50.5 Net income 12.9 41.6 52.8 Net diluted earnings per share 0.27 0.81 1.03 *With the exception of gross margin and
Slide 8: NON-GAAP Financial Results
NON-GAAP Financial Results *USD in millions Q4 18 Q3 19 Q4 19 Revenues 263.7 410.6 418.2 Gross margin 30.9% 35.1% 35.5% Operating expenses 45.1 54.8 63.1 Operating income 36.4 89.2 85.3 Net income 31.5 63.6 87.4 Net diluted earnings per share 0.63 1.21 1.65 *With the exception of gross margin and pe
Slide 9: Units Shipped
Units Shipped Power optimizers shipped Inverters shipped 9
Slide 10: Quarterly Revenues
Quarterly Revenues 10 USD Millions 450 400 350 300 263.7 250 200 150 100 50 0 Q4 18 271.9 Q119 325.0 Q2 19 410.6 Q3 19 Q419 solar eft
Slide 11: GAAP Gross Margins Trend by Quarters (%)
GAAP Gross Margins Trend by Quarters (%) 11
Slide 12: Non-GAAP Gross Margins Trend by Quarters (%)
Non-GAAP Gross Margins Trend by Quarters (%) 12
Slide 13: GAAP Operating Expenses
GAAP Operating Expenses 25.0% 22.2% 21.1% 21.4% 20.0% 20.1% Non - 17.9% Reccuring : Event 15.0% G&A 73% 7.4% 5.7% msam 10.0% R&D 5.0% 0.0% Q418 Q119 Q219 Q3 19 Q419 13 solar,
Slide 14: Consolidated GAAP Operating Income
Consolidated GAAP Operating Income * Q4 19 and Q3 19 Include non recurring operating expenses of $22.4M and $8.3M respectively 14
Slide 15: Consolidated NON-GAAP Operating Income
Consolidated NON-GAAP Operating Income 15
Slide 16: Consolidated GAAP Net Income
Consolidated GAAP Net Income Q4-18 includes a provisional tax expense of $8.2M 16 Q4 19 and Q3 19 Include non recurring operating expenses of $22.4M and $8.3M respectively
Slide 17: Consolidated NON-GAAP Net Income
Consolidated NON-GAAP Net Income 17
Slide 18: Balance Sheet & Cash flow
Balance Sheet & Cash flow USD in millions Q4 18 Q3 19 Q4 19 Cash and investments* 391.4 432.9 467.5 Inventory 141.5 134.3 170.8 Capital Expenditures 8.6 17.4 32.9 Total Debt** 20.2 21.0 15.8 Cash Flow From Operations 46.9 68.7 83.1 * A total amount of $218.8M, net of cash acquired was paid for acqui
Slide 19: First Quarter Guidance
First Quarter Guidance Revenues to be within the range of $425 million to $440 million; Gross margins expected to be within the range of 32% to 34%; Revenues from solar products to be within the range of $405 million to $415 million; Gross margins from sale of solar products expected to be within th
Slide 20: Appendix
Appendix solar,
Slide 21: Reconciliation of GAAP to Non-GAAP
Reconciliation of GAAP to Non-GAAP Reconciliation of GAAP to Non-GAAP Gross Profit Three months ended Year ended December 31, 2019 September 30, 2019 December 31, 2018 December 31, 2019 December 31, 2018 Gross profit (GAAP) 143,249 139,309 79,711 479,338 319,236 Stock-based compensation 2,268 1,691
Slide 22: Reconciliation of GAAP to Non-GAAP
Reconciliation of GAAP to Non-GAAP Reconciliation of GAAP to Non-GAAP Operating expenses Three months ended Year ended December 31, 2019 September 30, 2019 December 31, 2018 December 31, 2019 December 31, 2018 Operating expenses (GAAP) 92,721 73,292 55,757 289,392 179,816 Stock-based compensation -
Slide 23: 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 Year ended December 31, 2019 September 30, 2019 December 31, 2018 December 31, 2019 December 31, 2018 Financial expenses (income), net (GAAP) (11,058) 17,023 (288) 11,343 2,297 N
Slide 24: 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 Year ended December 31, 2019 September 30, 2019 December 31, 2018 December 31, 2019 December 31, 2018 Net income attributable to Solaredge Technologies Inc.
Slide 25: Reconciliation of GAAP to Non-GAAP
Reconciliation of GAAP to Non-GAAP Reconciliation of GAAP to Non-GAAP Net basic earnings per share Three months ended Year ended December 31, 2019 September 30, 2019 December 31, 2018 December 31, 2019 December 31, 2018 Net basic earnings per share (GAAP) 1.08 0.86 0.28 3.06 2.85 Cost of product adj
Slide 26: Reconciliation of GAAP to Non-GAAP
Reconciliation of GAAP to Non-GAAP Reconciliation of GAAP to Non-GAAP Net diluted earnings per share Three months ended Year ended December 31, 2019 September 30, 2019 December 31, 2018 December 31, 2019 December 31, 2018 Net diluted earnings per share (GAAP) 1.03 0.81 0.27 2.90 2.69 Cost of product
Slide 27: NASDAQ | SEDG
NASDAQ | SEDG solar,