Slide 1: First Quarter 2023 Earnings Summary
First Quarter 2023 Earnings Summary May 3rd, 2023
Slide 2: Safe Harbor
External 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, our business, results of operations, fina
Slide 3: First Quarter 2023 Key Metrics
External First Quarter 2023 Key Metrics 221.2MW/h Batteries Capacity Shipped 6.4M 3.6GW Power Optimizers Systems Shipped Shipped 329.7K $943.9M GAAP Revenues Inverters Shipped 3
Slide 4: First Quarter Financial Results
External First Quarter Financial Results Record GAAP revenue of $943.9 million Record revenue from solar segment of $908.5 million Revenues from non-solar segment of $35.2 million GAAP gross margin of 31.8% Non-GAAP gross margin of 32.6% Gross margin from sales of solar segment 35% Record Non-GAAP o
Slide 5: Noteworthy
External Noteworthy Record GAAP revenues of $943.9 million, up 6% q/q and 44% from the same quarter last year Record revenues in solar segment of $908.5 million, up 9% q/q and 49% from same quarter last year Record quarterly solar revenues in Germany, Austria, Switzerland, France, South Africa and A
Slide 6: Quarterly GAAP Financial Results
External Quarterly GAAP Financial Results USD in millions* Q1 22 Q4 22 Q1 23 Revenues 655.1 890.7 943.9 Gross margin 27.3% 29.3% 31.8% Operating expenses 128.1 266.2 156.0 Operating income 50.1 )5.2( 144.2 Net income 33.1 20.8 138.4 Net diluted earnings per share 0.60 0.36 2.35 * With the exception
Slide 7: Quarterly Non-GAAP Financial Results
External Quarterly Non-GAAP Financial Results USD in millions* Q1 22 Q4 22 Q1 23 Revenues 654.9 890.5 943.7 Gross margin 28.4% 30.2% 32.6% Operating expenses 98.9 119.0 123.6 Operating income 87.2 149.6 183.8 Net income 68.8 171.5 174.5 Net diluted earnings per share 1.20 2.86 2.90 * With the except
Slide 8: Units Shipped by Quarter
External Units Shipped by Quarter Power optimizers Inverters 6,674 6,441 329.7 315.3 6,123 5,724 5,215 264.5 5,011 5,123 4,699 230.8 228.4 211.1 197.3 3,735 181.9 179.5 Q1-21 Q2-21 Q3-21 Q4-21 Q1-22 Q2-22 Q3-22 Q4-22 Q1-23 Q1-21 Q2-21 Q3-21 Q4-21 Q1-22 Q2-22 Q3-22 Q4-22 Q1-23 units in thousands
Slide 9: Quarterly GAAP Revenues
External Quarterly GAAP Revenues 943.9 890.7 836.7 727.8 655.1 Q1-22 Q2-22 Q3-22 Q4-22 Q1-23 in USD millions
Slide 10: Gross Margin by Quarter
External Gross Margin by Quarter GAAP Non-GAAP 31.8% 32.6% 29.3% 30.2% 27.3% 28.4% 26.5% 27.3% 26.7% 25.1% Q1-22 Q2-22 Q3-22 Q4-22 Q1-23 Q1-22 Q2-22 Q3-22 Q4-22 Q1-23
Slide 11: Solar Segment Gross Margin by Quarter
External Solar Segment Gross Margin by Quarter 35.0% 32.4% 30.2% 28.1% 28.3% Q1-22 Q2-22 Q3-22 Q4-22 Q1-23 % of revenues
Slide 12: Consolidated Operating Expenses by Quarter
External Consolidated Operating Expenses by Quarter GAAP Non-GAAP 29.9% 15.1% 15.1% 3.0% 2.8% 13.4% 13.1% 12.9% 12.9% 2.4% 2.5% 3.0% 20.1% 19.6% 4.4% 0.6% 4.3% 4.0% 3.9% 16.4% 16.5% 3.9% 4.0% 3.5% 3.3% 3.4% 3.9% 5.4% 5.4% 5.1% 4.8% 4.3% 7.8% 7.9% 6.6% 6.9% 6.6% 10.1% 10.3% 8.9% 8.3% 8.5% -0.3% -0.2%
Slide 13: Consolidated Operating Income by Quarter
External Consolidated Operating Income by Quarter GAAP Non-GAAP 144.2 183.8 149.6 120.2 84.4 87.2 84.7 50.9 36.0 -5.2 Q1-22 Q2-22 Q3-22 Q4-22 Q1-23 Q1-22 Q2-22 Q3-22 Q4-22 Q1-23 USD millions
Slide 14: Consolidated Net Income by Quarter
External Consolidated Net Income by Quarter GAAP Non-GAAP 138.4 171.5 174.5 68.8 56.7 54.1 33.1 24.7 20.8 15.1 Q1-22 Q2-22 Q3 22 Q4-22 Q1-23 Q1-22 Q2-22 Q3-22 Q4-22 Q1-23 USD millions
Slide 15: Balance Sheet & Cash flow
External Balance Sheet & Cash flow USD in millions Q1 22 Q4 22 Q1 23 Cash and investments 1,612.8 1,671.6 1,648.1 Total Debt 633.8 633.6 633.6 Cash and Investments Net of Debt 979.0 1,038.0 1,014.5 Inventory 432.5 729.2 874.2 Capital Expenditures, Net 41.5 43.6 38.1 Cash Flow From Operations (163.0)
Slide 16: Second Quarter Guidance
External Second Quarter Guidance Revenue to be within the range of $970 million to $1,010 million Non-GAAP gross margin expected to be within the range of 32% to 35% Non-GAAP operating profit expected to be within the range of $195 million to $215 million Revenue from solar segment to be within the
Slide 17: Appendix
Append Sis ve te ew IX 9@ solar =>
Slide 18: Reconciliation of GAAP to Non-GAAP
External Reconciliation of GAAP to Non-GAAP Reconciliation of GAAP to Non-GAAP Gross Profit Three months ended March 31, 2023 December 31, 2022 March 31, 2022 Gross profit (GAAP) 300,126 261,047 178,958 Revenues from finance component (187) (174) (135) Stock-based compensation 5,927 6,810 5,062 Amor
Slide 19: Reconciliation of GAAP to Non-GAAP
External Reconciliation of GAAP to Non-GAAP Reconciliation of GAAP to Non-GAAP Operating expenses Three months ended March 31, 2023 December 31, 2022 March 31, 2022 Operating expenses (GAAP) 155,972 266,210 128,094 Stock-based compensation - R&D (17,209) (16,854) (14,985) Stock-based compensation -
Slide 20: Reconciliation of GAAP to Non-GAAP
External Reconciliation of GAAP to Non-GAAP Reconciliation of GAAP to Non-GAAP Financial income (expenses), net Three months ended March 31, 2023 December 31, 2022 March 31, 2022 Financial income (expense), net (GAAP) 23,674 56,101 (5,449) Notes due 2025 731 730 728 Non cash interest 2,161 1,955 1,6
Slide 21: Reconciliation of GAAP to Non-GAAP
External Reconciliation of GAAP to Non-GAAP Reconciliation of GAAP to Non-GAAP Net income Three months ended March 31, 2023 December 31, 2022 March 31, 2022 Net income (GAAP) 138,378 20,829 33,123 Revenues from finance component (187) (174) (135) Stock-based compensation 39,235 38,607 34,107 Amortiz
Slide 22: Reconciliation of GAAP to Non-GAAP
External Reconciliation of GAAP to Non-GAAP Reconciliation of GAAP to Non-GAAP Net basic EPS Three months ended March 31, 2023 December 31, 2022 March 31, 2022 Net basic earnings per share (GAAP) 2.46 0.37 0.62 Revenues from finance component 0.00 0.00 0.00 Stock-based compensation 0.70 0.69 0.64 Am
Slide 23: Reconciliation of GAAP to Non-GAAP
External Reconciliation of GAAP to Non-GAAP Reconciliation of GAAP to Non-GAAP Net diluted EPS Three months ended March 31, 2023 December 31, 2022 March 31, 2022 Net diluted earnings per share (GAAP) 2.35 0.36 0.60 Revenues from finance component (0.01) 0.00 0.00 Stock-based compensation 0.62 0.64 0