Slide 1: Third Quarter 2020 Earnings Summary
Third Quarter 2020 Earnings Summary November 2, 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: Third Quarter Key Metrics
Third Quarter Key Metrics 153K 1.45 GW Inverters Shipped 3.3M Systems Shipped Power Optimizers Shipped $338.1M Revenues 3
Slide 4: Financial Results for Quarter
Financial Results for Quarter Revenue of $338.1 million Revenue from solar products of $312.5 million Total cash and investments, net of debt, $553.8 million GAAP gross margin of 32.0% Non-GAAP gross margin of 33.5% Non-GAAP gross margin for the solar business of 34.8% GAAP operating income of $30.4
Slide 5: Noteworthy
Noteworthy Record revenues from Europe Residential revenues growing globally, while commercial revenues still impacted more heavily by Covid-19 North America environment continues to improve, Sept. sales by distributors reported significantly up month over month, above Sep 2019 Sella 1 factory manuf
Slide 6: GAAP Financial Results
GAAP Financial Results *USD in millions Q3 19 Q2 20 Q3 20 Revenues 410.6 331.9 338.1 Gross margin 33.9% 31.0% 32.0% Operating expenses 73.3 ** 73.0 77.7 Operating income 66.0 30.0 30.4 Net income 41.6 36.7 43.8 Net diluted earnings per share 0.81 0.70 0.83 *With the exception of gross margin and per
Slide 7: NON-GAAP Financial Results
NON-GAAP Financial Results *USD in millions Q3 19 Q2 20 Q3 20 Revenues 410.6 331.9 338.1 Gross margin 35.1% 32.4% 33.5% Operating expenses 54.8 61.1 63.2 Operating income 89.2 46.6 50.0 Net income 63.6 52.1 65.9 Net diluted earnings per share 1.21 0.95 1.21 *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 5,000 200.0 187.9 186.8 4,587 4,454 4,500 180.0 160.1 4,000 3,731 160.0 152.5 3,516 141.7 3,500 3,134 3,272 140.0 130.7 3,004 3,029 121.8 120.5 3,000 120.0 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 .” 410.6 418.2 eh 400 350 31.9 338.1 300 250 200 150 100 50 0 319 Q419 Qi 20 220 QB 20 solar
Slide 10: Gross Margins Trend by Quarters (%)
Gross Margins Trend by Quarters (%) GAAP Non-GAAP 40% 40% 35.1% 35.5% 35% 33.9% 34.3% 35% 33.6% 32.4% 33.5% 32.5% 32.0% 31.0% 30% 30% 25% 25% 20% 20% 15% 15% 10 % 10% 5% 5% 0% 0% Q3 19 Q4 19 Q1 20 Q2 20 Q3 20 Q3 19 Q4 19 Q1 20 Q2 20 Q3 20 10
Slide 11: GAAP Operating Expenses
GAAP Operating Expenses 28.0% 23.0% 23.0% 22-2% 22.0% Non - Reccuring 17.9% 5.4% 16.8% Event 18.0% 2.0% G&A 13.0% S&M 8.0% 11.5% 12.1% @ R&D 3.0% 75% 8.3% 8.5% =1.1% -2.0% Q3 19 Q419 Qi 20 Q2 20 Q3 20 " solarzekT
Slide 12: Consolidated Operating Income
Consolidated Operating Income GAAP Non-GAAP 70 67.8 66.0 89.2 90 85.3 60 78.7 80 50.5 50 70 60 40 50.0 50 46.6 30.0 30.4 30 40 30 20 20 10 10 0 0 Q3 19 Q4 19 Q1 20 Q2 20 Q3 20 Q3 19 Q4 19 Q1 20 Q2 20 Q3 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 65.9 63.6 42.2 43.8 60 41.6 40 36.7 50.7 52.1 50 30 40 30 20 20 10 10 0 0 Q3 19 Q4 19 Q1 20 Q2 20 Q3 20 Q3 19 Q4 19 Q1 20 Q2 20 Q3 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 Q3 19 Q2 20 Q3 20 Cash and investments 432.9 592.7 1,201.9 Total Debt* 21.0 15.3 648.1 Cash and Investments Net 411.9 577.4 553.8 of Debt Inventory 134.3 264.5 297.0 Capital Expenditures 17.4 46.8 36.4 Cash Flow From Operations 68.7 59.3 28.4 * Debt balances
Slide 15: Fourth Quarter Guidance
Fourth Quarter Guidance* Revenues to be within the range of $345 million to $365 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 $320 million to $335 million; Non-GAAP gross margins from sale of solar products expe
Slide 16: Appendix
Appendix solar,
Slide 17: Reconciliation of GAAP to Non-GAAP
Reconciliation of GAAP to Non-GAAP Reconciliation of GAAP to Non-GAAP Gross Profit Three months ended Nine months ended September 30, 2020 June 30, 2020 September 30, 2019 September 30, 2020 September 30, 2019 Gross profit (GAAP) 108,063 102,963 139,309 351,034 336,089 Stock-based compensation 2,730
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 Nine months ended September 30, 2020 June 30, 2020 September 30, 2019 September 30, 2020 September 30, 2019 Operating expenses (GAAP) 77,669 72,998 73,292 222,900 196,671 Stock-based compensat
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 Nine months ended September 30, 2020 June 30, 2020 September 30, 2019 September 30, 2020 September 30, 2019 Financial expenses (income), net (GAAP) (15,765) (11,565) 17,023 (10,7
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 Nine months ended September 30, 2020 June 30, 2020 September 30, 2019 September 30, 2020 September 30, 2019 Net income attributable to Solaredge Technologies Inc. (GAAP) 43,751 36,668 41,627 122,667 9
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 Nine months ended September 30, 2020 June 30, 2020 September 30, 2019 September 30, 2020 September 30, 2019 Net basic earnings per share (GAAP) 0.87 0.74 0.86 2.46 1.97 Cost of product adjustment -
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 Nine months ended September 30, 2020 June 30, 2020 September 30, 2019 September 30, 2020 September 30, 2019 Net diluted earnings per share (GAAP) 0.83 0.70 0.81 2.33 1.87 Cost of product adjustme
Slide 23: NASDAQ | SEDG
NASDAQ | SEDG solar,