Slide 1: First Quarter 2020 Earnings Summary
First Quarter 2020 Earnings Summary May 6, 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: First Quarter Key Metrics
First Quarter Key Metrics 5.1M 202K 1.85 GW $431.2M Power Optimizers Shipped Inverters Shipped Systems Shipped Revenues 3
Slide 4: Financial Results for Quarter
Financial Results for Quarter Record revenue of $431.2 million, up 58.6% YoY Record revenue from solar products of $407.6 million Total cash and investments, net of debt, $543.6 million GAAP gross margin of 32.5% Non-GAAP gross margin of 33.6% Non-GAAP gross margin for the solar business of 35.0% Re
Slide 5: Noteworthy
Noteworthy Record revenues and record cash flow from operations COVID-19 did not materially impact first quarter results Company and its global manufacturing sites are operating fully despite country specific restrictions Began shipments to U.S. of new storage and backup offering based on new invert
Slide 6: GAAP Financial Results
GAAP Financial Results *USD in millions Q1 19 Q4 19 Q1 20 Revenues 271.9 418.2 431.2 Gross margin 31.7% 34.3% 32.5% Operating expenses 58.1 92.7 ** 72.2 ** Operating income 28.0 50.5 67.8 Net income 19.0 52.8 42.2 Net diluted earnings per share 0.39 1.03 0.81 *With the exception of gross margin and
Slide 7: NON-GAAP Financial Results
NON-GAAP Financial Results *USD in millions Q1 19 Q4 19 Q1 20 Revenues 271.9 418.2 431.2 Gross margin 32.8% 35.5% 33.6% Operating expenses 48.0 63.1 66.3 Operating income 41.2 85.3 78.6 Net income 32.9 87.4 50.7 Net diluted earnings per share 0.64 1.65 0.95 *With the exception of gross margin and pe
Slide 8: Units Shipped
Units Shipped Power optimizers shipped Inverters shipped 8
Slide 9: Quarterly Revenues
Quarterly Revenues USD Millions 450 400 350 300 250 200 271.9 Q119 325.0 Q219 410.6 Q3 19 418.2 Q4 19 Q1 20 solar eft
Slide 10: GAAP Gross Margins Trend by Quarters (%)
GAAP Gross Margins Trend by Quarters (%) 10
Slide 11: Non-GAAP Gross Margins Trend by Quarters (%)
Non-GAAP Gross Margins Trend by Quarters (%) 11
Slide 12: GAAP Operating Expenses
GAAP Operating Expenses 23.0% 18.0% 13.0% 8.0% 3.0% -2.0% 12 21.4% Qi19 20.1% Q219 17.9% 2.0% Q3 19 22.2% 54% 5.7% Q419 16.8% 5.6% 1.1% Qi 20 Non - Reccuring Expense G&A BS&M R&D solar,
Slide 13: Consolidated GAAP Operating Income
Consolidated GAAP Operating Income * Q1 20, Q4 19 and Q3 19 include non recurring operating (income) expenses of )$4.9M(, $22.4M 13 and $8.3M respectively
Slide 14: Consolidated NON-GAAP Operating Income
Consolidated NON-GAAP Operating Income 14
Slide 15: Consolidated GAAP Net Income
Consolidated GAAP Net Income Q1 20, Q4 19 and Q3 19 include non recurring operating (income) expenses of ($4.9M), $22.4M 15 and $8.3M respectively
Slide 16: Consolidated NON-GAAP Net Income
Consolidated NON-GAAP Net Income 16
Slide 17: Balance Sheet & Cash flow
Balance Sheet & Cash flow USD in millions Q1 19 Q4 19 Q1 20 Cash and investments 397.6 467.5 558.7 Inventory 150.8 170.8 198.6 Capital Expenditures 10.6 32.9 27.1 Total Debt* 24.3 15.8 15.0 Cash Flow From Operations 56.5 83.1 107.7 * Debt balances relate to pre acquisition loans in Kokam and SMRE 17
Slide 18: Second Quarter Guidance
Second Quarter Guidance* Revenues to be within the range of $305 million to $335 million; Gross margins expected to be within the range of 30% to 32%; Revenues from solar products to be within the range of $285 million to $315 million; Gross margins from sale of solar products expected to be within
Slide 19: Appendix
Appendix solar,
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 March 31, 2020 December 31, 2019 March 31, 2019 Gross profit (GAAP) 140,008 143,249 86,110 Stock-based compensation 2,273 2,268 1,354 Cost of product adjustment 313 448 682 Amortization and deprecia
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 March 31, 2020 December 31, 2019 March 31, 2019 Operating expenses (GAAP) 72,233 92,721 58,062 Stock-based compensation - R&D (5,378) (4,937) (3,490) Stock-based compensation - S&M (3,192) (3,
Slide 22: 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 March 31, 2020 December 31, 2019 March 31, 2019 Financial expenses (income), net (GAAP) 16,605 (11,058) 6,151 Non cash interest (1,128) (1,055) (785) Currency fluctuation related
Slide 23: 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 March 31, 2020 December 31, 2019 March 31, 2019 Net income attributable to Solaredge Technologies Inc. (GAAP) 42,248 52,778 19,016 Cost of product adjustmen
Slide 24: 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 March 31, 2020 December 31, 2019 March 31, 2019 Net basic earnings per share (GAAP) 0.86 1.08 0.40 Cost of product adjustment 0.01 0.01 0.02 Stock-based compensation 0.25 0.20 0.21 A
Slide 25: 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 March 31, 2020 December 31, 2019 March 31, 2019 Net diluted earnings per share (GAAP) 0.81 1.03 0.39 Cost of product adjustment 0.01 0.01 0.01 Nonvested PSUs ---- (0.01) ---- Stock
Slide 26: NASDAQ | SEDG
NASDAQ | SEDG solar,