Slide 1: Calendar Fourth Quarter 2017 Earnings summary
Calendar Fourth Quarter 2017 Earnings summary February 14, 2018
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 Operating Metrics
KEY OPERATING METRICS $$ 2.1M optimizers 95K inverters 766 Megawatts $189.3M revenues shipped shipped shipped
Slide 4: Fourth Quarter Highlights
FOURTH QUARTER HIGHLIGHTS Financial highlights for quarter Record revenue of $189.3 million, up 13.7% QoQ Record GAAP gross margin of 37.5% Record GAAP operating income of $34.6 million GAAP net income of $19.5 million Non-GAAP net income of $41.2 million Record cash flow from operation - $45.8M Bus
Slide 5: CY2017 Highlights
CY2017 HIGHLIGHTS Financial highlights for year Record revenue of $607.0 million, up 23.9% YoY Record GAAP gross margin of 35.4% Record GAAP operating income of $91.1 million Record GAAP net income of $84.2 million Non-GAAP net income of $115.0 million Record cash flow from operation - $136.7M Busin
Slide 6: Noteworthy
NOTEWORTHY Record quarter performance in all financial parameters: revenues, gross margin, profitability (excluding one-time tax provision) and quarterly cash flow generation Record annual performance exhibiting growth in all regions (U.S. revenues representing 57.5% of annual revenues compared to 6
Slide 7: GAAP Financial Results
GAAP FINANCIAL RESULTS *USD in millions CQ4'17 CQ3'17 CQ4'16 Revenues 189.3 166.6 111.5 Gross margin 37.5% 34.9% 35.0% Operating expenses 36.4 32.7 23.9 Operating income 34.6 25.4 15.1 Net income 19.5 28.0 9.8 Net diluted earnings per share 0.42 0.61 0.22 *With the exception of gross margin and per
Slide 8: Non-GAAP Financial Results
NON-GAAP FINANCIAL RESULTS *USD in millions CQ4'17 CQ3'17 CQ4'16 Revenues 189.3 166.6 111.5 Gross margin 37.9% 35.2% 35.4% Operating expenses 31.7 28.7 20.9 Operating income 40.0 29.9 18.6 Net income 41.2 31.5 14.7 Net diluted earnings per share 0.85 0.66 0.32 * With the exception of gross margin an
Slide 9: Quarterly Revenues
QUARTERLY REVENUES USD millions 200 180 160 189 167 136 140 iw 115 120 100 80 60 40 20 0 cQ4'16 cqQi'17 CQ2'17 CQ3'17 CQ4'17 solani
Slide 10: Units Shipped
UNITS SHIPPED Optimizers shipped Inverters shipped
Slide 11: Gross Margin
GROSS MARGIN * *CQ4 ’16 gross margin included one time benefit of approximately 2%
Slide 12: Operating Expenses
OPERATING EXPENSES *CQ1 ’17 operating expenses included accrual for doubtful debt, representing 1% of revenues
Slide 13: GAAP Operating Income
—— GAAP OPERATING INCOME ———— USD millions 34.6 a 35 30 25.4 ye 25 19.1 20 15.1 gg 12.0 15 y 10 5 0 CQ4'16 cqQi'17 CQ2'17 CQ3'17 CQ4'17 solar
Slide 14: Non-GAAP Operating Income
NON-GAAP OPERATING INCOME USD millions
Slide 15: GAAP Net Income
GAAP NET INCOME USD millions * * Q4 ‘17 includes one time transition tax of $18.7M
Slide 16: Non-GAAP Net Income
NON-GAAP NET INCOME USD millions
Slide 17: Balance Sheet & Cash Flow
BALANCE SHEET & CASH FLOW USD in millions CQ4'17 CQ3'17 CQ4'16 Cash and investments 345.1 304.7 224.3 Inventory 83.0 62.4 67.4 Capital Expenditures 8.8 5.6 7.2 Total Debt 0.0 0.0 0.0 Cash Flow From Operations 45.8 33.6 24.7
Slide 18: First Quarter Guidance
FIRST QUARTER GUIDANCE Revenues expected to be within the range of $200 million to $210 million Gross margin expected to remain flat within the range of 36% to 38%
Slide 19: Appendix
solarzehre solarzs{e-" Appendix
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 12 months ended December 31, 2017 September 30, 2017 December 31, 2016 December 31, 2017 December 31, 2016 Gross profit (GAAP) 70,970 58,054 39,025 214,766 160,747 Stock-based compensation 703 538 4
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 12 months ended December 31, 2017 September 30, 2017 December 31, 2016 December 31, 2017 December 31, 2016 Operating expenses (GAAP) 36,399 32,658 23,878 123,680 89,737 Stock-based compensatio
Slide 22: Reconciliation of GAAP to Non-GAAP
RECONCILIATION OF GAAP TO NON-GAAP Reconciliation of GAAP to Non-GAAP Tax on income (Tax benefit) Three months ended 12 months ended December 31, 2017 September 30, 2017 December 31, 2016 December 31, 2017 December 31, 2016 Tax on income (Tax benefit) (GAAP) 16,556 91 2,203 16,072 6,270 Deferred tax
Slide 23: Reconciliation of GAAP to Non-GAAP
RECONCILIATION OF GAAP TO NON-GAAP Reconciliation of GAAP to Non-GAAP Net basic EPS Three months ended 12 months ended December 31, 2017 September 30, 2017 December 31, 2016 December 31, 2017 December 31, 2016 Net basic earnings per share (GAAP) 0.45 0.66 0.24 1.99 1.56 Stock-based compensation 0.12
Slide 24: NASDAQ | SEDG
solarzehre solarzs{e-" NASDAQ | SEDG