Slide 1: Second Quarter 2020 Earnings Summary
Second Quarter 2020 Earnings Summary August 3, 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: the expected impact of the COVID-19 pa
Slide 3: Second Quarter Key Metrics
Second Quarter Key Metrics 3.5M 142K 1.44 GW $331.9M Power Optimizers Shipped Inverters Shipped Systems Shipped Revenues 3
Slide 4: Financial Results for Quarter
Financial Results for Quarter Revenue of $331.9 million Revenue from solar products of $310.1 million Total cash and investments, net of debt, $577.4 million GAAP gross margin of 31.0% Non-GAAP gross margin of 32.4% Non-GAAP gross margin for the solar business of 33.8% GAAP operating income of $30.0
Slide 5: Noteworthy
Noteworthy Revenues of $331.9 million led by Europe, the U.S. and Australia Continued profitability and healthy cash generation Sales and installations in Europe have returned, and in some countries exceeding, pre COVID-19 rates Signs of recovery in the U.S., although not at pre COVID-19 level, yet
Slide 6: GAAP Financial Results
GAAP Financial Results *USD in millions Q2 19 Q1 20 Q2 20 Revenues 325.0 431.2 331.9 Gross margin 34.1% 32.5% 31.0% Operating expenses ** 65.3 72.2** 73.0 Operating income 45.4 67.8 30.0 Net income 33.1 42.2 36.7 Net diluted earnings per share 0.66 0.81 0.70 *With the exception of gross margin and p
Slide 7: NON-GAAP Financial Results
NON-GAAP Financial Results *USD in millions Q2 19 Q1 20 Q2 20 Revenues 325.0 431.2 331.9 Gross margin 35.7% 33.6% 32.4% Operating expenses 54.9 66.3 61.1 Operating income 61.0 78.6 46.6 Net income 49.3 50.7 52.1 Net diluted earnings per share 0.94 0.95 0.97 *With the exception of gross margin and pe
Slide 8: Units Shipped
Units Shipped Power optimizers shipped Inverters shipped K Units K Units 5,500 220.0 5,060 202.0 5,000 200.0 187.9 4,587 4,454 186.8 4,500 180.0 160.1 4,000 3,731 160.0 3,516 141.7 3,500 3,134 140.0 130.7 3,004 3,029 121.8 120.5 3,000 2,738 120.0 113.8 2,500 100.0 2,000 80.0 1,500 60.0 1,000 40.0 50
Slide 9: Quarterly Revenues
Quarterly Revenues USD Millions 450 410.6 418.2 ae 400 350 325.0 300 250 200 150 100 50 0 Q219 Q319 Q4 19 Qt 20 Q2 20 solar
Slide 10: Gross Margins Trend by Quarters (%)
Gross Margins Trend by Quarters (%) GAAP Non-GAAP 40% 40% 35.7% 35.1% 35.5% 35% 34.1% 33.9% 34.3% 35% 33.6% 32.5% 32.4% 31.0% 30% 30% 25% 25% 20% 20% 15% 15% 10 % 10% 5% 5% 0% 0% Q2 19 Q3 19 Q4 19 Q1 20 Q2 20 Q2 19 Q3 19 Q4 19 Q1 20 Q2 20 10
Slide 11: GAAP Operating Expenses
GAAP Operating Expenses 23.0% 18.0% 13.0% 8.0% 3.0% -2.0% 11 22.2% 22.0% 20.1% w 5.4% lon - 17.9% 16.8% Reccuring 2.0% Event GA S&M. 115% BR&D 9.1% 7.5% 8.3% 85% : : : AR : 1 Q219 Q3 19 Q419 Qi 20 Q220 solar
Slide 12: Consolidated Operating Income
Consolidated Operating Income GAAP Non-GAAP 70 66.0 67.8 89.2 90 85.3 60 80 78.7 50.5 70 50 61.0 45.4 60 40 50 46.6 30.0 30 40 30 20 20 10 10 0 0 Q2 19 Q3 19 Q4 19 Q1 20 Q2 20 Q2 19 Q3 19 Q4 19 Q1 20 Q2 20 USD Millions 12 * GAAP Q1 20, Q4 19 and Q3 19 include non recurring operating (income) expense
Slide 13: Consolidated Net Income
Consolidated Net Income GAAP Non-GAAP 70 90 87.4 60 80 52.8 50 70 63.6 41.6 42.2 60 40 36.7 49.3 50.7 52.1 33.1 50 30 40 30 20 20 10 10 0 0 Q2 19 Q3 19 Q4 19 Q1 20 Q2 20 Q2 19 Q3 19 Q4 19 Q1 20 Q2 20 USD Millions 13 * Q1 20, Q4 19 and Q3 19 include non recurring operating (income) expenses of ($4.9M
Slide 14: Balance Sheet & Cash flow
Balance Sheet & Cash flow USD in millions Q2 19 Q1 20 Q2 20 Cash deposits and 373.6 558.7 592.7 investments Inventory 148.9 198.6 264.5 Capital Expenditures 11.7 27.4 26.4 Total Debt* 22.0 15.0 15.3 Cash Flow From Operations 50.8 107.7 59.3 * Debt balances relate to pre acquisition loans in Kokam an
Slide 15: Third Quarter Guidance
Third Quarter Guidance* Revenues to be within the range of $325 million to $350 million; Non-GAAP gross margins expected to be within the range of 32% to 34%; Revenues from solar products to be within the range of $305 million to $325 million; Non-GAAP gross margins from sale of solar products expec
Slide 16: Appendix
Appendix solar,
Slide 17: Reconciliation of GAAP to Non-GAAP
Reconciliation of GAAP to Non-GAAP Reconciliation of Non-GAAP Financial Measures Reconciliation of GAAP to Non-GAAP Gross Profit Three months ended Six months ended June 30, 2020 March 31, 2020 June 30, 2019 June 30, 2020 June 30, 2019 Gross profit (GAAP) 102,963 140,008 110,670 242,971 196,780 Stoc
Slide 18: 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, 2020 March 31, 2020 June 30, 2019 June 30, 2020 June 30, 2019 Operating expenses (GAAP) 72,998 72,233 65,317 145,231 123,379 Stock-based compensation - R&D (5,847) (5
Slide 19: 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, 2020 March 31, 2020 June 30, 2019 June 30, 2020 June 30, 2019 Financial expenses (income), net (GAAP) (11,565) 16,605 (773) 5,040 5,378 Non cash interes
Slide 20: 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, 2020 March 31, 2020 June 30, 2019 June 30, 2020 June 30, 2019 Net income attributable to Solaredge Technologies Inc. (GAAP) 36,668 42,248 33,128 78,916 52,144 Cost of product
Slide 21: 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, 2020 March 31, 2020 June 30, 2019 June 30, 2020 June 30, 2019 Net basic earnings per share (GAAP) 0.74 0.86 0.69 1.59 1.10 Cost of product adjustment ---- 0.01 0.01 0.01 0
Slide 22: 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, 2020 March 31, 2020 June 30, 2019 June 30, 2020 June 30, 2019 Net diluted earnings per share (GAAP) 0.70 0.81 0.66 1.51 1.05 Cost of product adjustment ---- 0.01 ---- --
Slide 23: NASDAQ | SEDG
NASDAQ | SEDG solar,