Solaredge Technologies, Inc. · NASDAQ:SEDG

Solaredge Technologies — Q1 2016 Earnings Presentation

20 slides from Solaredge Technologies's earnings presentation, Nov 4, 2015

  1. Slide 1: Fiscal First Quarter 2016 Earnings summary

    Fiscal First Quarter 2016 Earnings summary November 4, 2015 | 1 |

  2. Slide 2: Safe Harbor: Use of Forward-Looking Statements

    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

  3. Slide 3: Key Operating Metrics

    KEY OPERATING METRICS $$ 1,460K optimizers 54K inverters 356 Megawatts $115.1M revenues shipped shipped shipped | 3 |

  4. Slide 4: Fiscal First Quarter Highlights

    FISCAL FIRST QUARTER HIGHLIGHTS Financial highlights for quarter Record revenue of $115.1 million, up 16.9% QoQ; 71.8% YoY GAAP gross margin of 29.1% GAAP net income of $14.4 million Non-GAAP net income of $16.3 million Continued to generate cash flow from operations Business highlights for quarter

  5. Slide 5: Noteworthy

    NOTEWORTHY Financial and business parameters are within plan and above guidance Gross margins expected to continue to increase while ASP erosion for calendar 2015 is expected to be 7.5-10%, within plan Expecting growth in business in Europe in 2016, despite expected significant changes in the U.K. m

  6. Slide 6: Financial Results

    FINANCIAL RESULTS USD in millions* FYQ1 '16 FYQ4 '15 FYQ1 '15 Revenues 115.1 98.4 67.0 Gross margin 29.1% 28.7% 20.9% Operating expenses 18.7 16.4 11.7 Operating income 14.9 11.9 2.4 Net income 14.4 9.3 2.5 Net diluted earnings per share 0.32 0.21 0.00 *with the exception of gross margin and per sha

  7. Slide 7: Non-GAAP Financial Results

    NON-GAAP FINANCIAL RESULTS USD in millions* FYQ1 '16 FYQ4 '15 FYQ1 '15 Revenues 115.1 98.4 67.0 Gross margin 29.3% 28.9% 21.0% Operating expenses 17.0 15.4 11.4 Operating income 16.7 13.1 2.7 Net income 16.3 13.8 2.8 Net diluted Earnings Per Share 0.36 0.31 0.09 *with the exception of gross margin a

  8. Slide 8: Revenue Growth

    REVENUE GROWTH USD millions 120.0 71.8% 100.0 80.0 60.0 40.0 20.0 - FYQ1 '15 FYQ2 '15 FYQ3 '15 FYQ4 '15 FYQ1 '16 | 8 |

  9. Slide 9: Units Shipped

    UNITS SHIPPED Optimizers shipped Inverter shipped K units Units 1,600 60,000 1,400 50,000 1,200 40,000 1,000 800 30,000 600 20,000 400 200 10,000 - - FYQ1 FYQ2 FYQ3 FYQ4 FYQ1 FYQ2 FYQ3 FYQ4 FYQ1 FYQ1 FYQ2 FYQ3 FYQ4 FYQ1 FYQ2 FYQ3 FYQ4' FYQ1' '14 '14 '14 '14 '15 '15 '15 '15 '16 '14 '14 '14 '14 '15 '1

  10. Slide 10: Gross Margins

    GROSS MARGINS 31.0% 29.1% 28.7% 29.0% 27.4% 27.0% 25.0% 23.0% 21.5% 20.9% 21.0% 19.0% 17.0% 15.0% FYQ1 '15 FYQ2 '15 FYQ3 '15 FYQ4 '15 FYQ1 '16 | 10 |

  11. Slide 11: Operating Expenses

    OPERATING EXPENSES 20.0% 17.4% 16.7% 16.2%* 18.0% 15.8% 16.1% 1.7% 16.0% 1.5% 2.3% 2.3% 3.0% 14.0% 12.0% 8.2% G&A 7.7% 7.4% 7.6% 10.0% 7.2% S&M 8.0% R&D 6.0% 4.0% 7.6% 6.5% 6.4% 6.8% 6.1% 2.0% 0.0% FYQ1 '15 FYQ2 '15 FYQ3 '15 FYQ4 '15 FYQ'1 16 * G&A expenses includes $600K, or 0.5% of revenues, of ac

  12. Slide 12: Net Income

    NET INCOME GAAP Non-GAAP USD thousands USD thousands 18,000 18,000 16,000 16,000 14,000 14,000 12,000 12,000 10,000 10,000 8,000 8,000 6,000 6,000 4,000 4,000 2,000 2,000 - - FYQ1 '15 FYQ2 '15 FYQ3 '15 FYQ4 '15 FYQ1 '16 FYQ1 '15 FYQ2 '15 FYQ3 '15 FYQ4 '15 FYQ1 '16 | 12 |

  13. Slide 13: Balance Sheet & Cash Flow

    BALANCE SHEET & CASH FLOW USD in millions FYQ1 '16 FYQ4 '15 FYQ1 '15 Cash and investments 150.3 148.4 36.3 Inventory 79.9 74.0 29.7 Capital Expenditures* 3.3 3.5 1.0 Total Debt - - 25.0 Cash Flow From Operations 5.9 15.7 (0.3) * FYQ1 ‘16 and FYQ4 ‘15 includes $0.9M and $0.7M related to leasehold imp

  14. Slide 14: Fiscal First Quarter Outlook

    FISCAL FIRST QUARTER OUTLOOK Revenues to be within the range of $118.0 million to $121.0 million Gross margin to be within the range of 28.0% to 30.0%. | 14 |

  15. Slide 15: Appendix

    solarze{e-" Appendix

  16. Slide 16: Reconciliation of GAAP to Non-GAAP

    RECONCILIATION OF GAAP TO NON-GAAP Reconciliation of GAAP to Non-GAAP Gross Profit FYQ1 '16 FYQ4 '15 FYQ1 '15 (1) Gross profit (GAAP) 33,527 28,271 14,030 Stock-based compensation 180 188 37 Gross profit (Non-GAAP) 33,707 28,459 14,067 Reconciliation of GAAP to Non-GAAP Gross Margin FYQ1 '16 FYQ4 '1

  17. Slide 17: Reconciliation of GAAP to Non-GAAP

    RECONCILIATION OF GAAP TO NON-GAAP Reconciliation of GAAP to Non-GAAP Operating income (loss) FYQ1 '16 FYQ4 '15 FYQ1 '15 (1) Operating income (GAAP) 14,874 11,873 2,351 Stock-based compensation 1,832 1,204 320 Operating income (Non-GAAP) 16,706 13,077 2,671 Reconciliation of GAAP to Non-GAAP Finance

  18. Slide 18: Reconciliation of GAAP to Non-GAAP

    RECONCILIATION OF GAAP TO NON-GAAP Reconciliation of GAAP to Non-GAAP Net basic EPS FYQ1 '16 FYQ4 '15 FYQ1 '15 (1) Net basic earnings (loss) per share (GAAP) 0.37 0.24 ---- Stock-based compensation 0.04 0.03 0.01 Warrants remeasurement ---- 0.08 ---- Additional shares giving effect to IPO and conver

  19. Slide 19: Reconciliation of GAAP to Non-GAAP

    RECONCILIATION OF GAAP TO NON-GAAP Reconciliation of GAAP to Non-GAAP Net diluted EPS FYQ1 '16 FYQ4 '15 FYQ1 '15 (1) Net diluted earnings (loss) per share (GAAP) 0.32 0.21 ---- Stock-based compensation 0.04 0.02 ---- Warrants remeasurement ---- 0.08 ---- Additional shares giving effect to IPO and co

  20. Slide 20: NASDAQ | SEDG

    solarze{e-" NASDAQ | SEDG

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