Slide 1: Third Quarter 2022 Earnings Summary
Third Quarter 2022 Earnings Summary November 7, 2022
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, our business, results of operations, financial con
Slide 3: Third Quarter 2022 Key Metrics
Third Quarter 2022 Key Metrics 320.7MW/h Batteries Capacity Shipped 6.1M 2.7 GW Power Optimizers Systems Shipped Shipped 264.5K $836.7M GAAP Revenues Inverters Shipped 3
Slide 4: Financial Results for Quarter
Financial Results for Quarter Record GAAP revenue of $836.7 million Record revenue from solar segment of $788.6 million Revenues from non-solar segment of $48.0 million GAAP gross margin of 26.5% Non-GAAP gross margin of 27.3% Gross margin from sales of solar segment 28.3% Record Non-GAAP operating
Slide 5: Noteworthy
Noteworthy Record quarterly revenues Strong operational quarter with improved gross margins despite weakened Euro versus US Dollar combined with flat operating expenses, yielding record operating profit Record quarterly revenues in Europe, in Germany and Holland in particular, and record revenues in
Slide 6: GAAP Quarterly Financial Results
GAAP Quarterly Financial Results USD in millions* Q3 21 Q2 22 Q3 22 Revenues 526.4 727.8 836.7 Gross margin 32.8% 25.1% 26.5% Operating expenses 106.1 146.6 137.6 Operating income 66.4 36.0 84.4 Net income 53.0 15.1 24.7 Net diluted earnings per share 0.96 0.26 0.43 * With the exception of gross mar
Slide 7: NON-GAAP Quarterly Financial Results
NON-GAAP Quarterly Financial Results USD in millions* Q3 21 Q2 22 Q3 22 Revenues 526.3 727.6 836.6 Gross margin 34.0% 26.7% 27.3% Operating expenses 83.8 109.6 108.3 Operating income 95.2 84.7 120.2 Net income 82.1 56.7 54.1 Net diluted earnings per share 1.45 0.95 0.91 * With the exception of gross
Slide 8: Units Shipped
Units Shipped Power optimizers Inverters 6,123 264.5 5,724 5,215 230.8 228.4 5,011 5,123 4,699 211.1 197.3 181.9 179.5 165.7 3,614 3,735 152.5 3,272 Q3 20 Q4 20 Q1 21 Q2 21 Q3 21 Q4 21 Q1 22 Q2 22 Q1 23 Q3 20 Q4 20 Q1 21 Q2 21 Q3 21 Q4 21 Q1 22 Q2 22 Q3 22 units in thousands
Slide 9: GAAP Revenues
GAAP Revenues 836.7 727.8 655.1 551.9 526.4 Q3-21 Q4-21 Q1-22 Q2-22 Q3-22 in USD millions
Slide 10: Gross Margin
Gross Margin GAAP Non-GAAP 32.8% 34.0% 29.1% 30.3% 27.3% 28.4% 26.5% 27.3% 26.7% 25.1% Q3-21 Q4-21 Q1-22 Q2-22 Q3-22 Q3-21 Q4-21 Q1-22 Q2-22 Q3-22 % of revenues
Slide 11: Solar Segment Gross Margin
Solar Segment Gross Margin 36.6% 32.8% 30.2% 28.1% 28.3% Q3-21 Q4-21 Q1-22 Q2-22 Q3-22 % of revenues
Slide 12: Consolidated Operating Expenses
Consolidated Operating Expenses GAAP Non-GAAP 21.6% 17.1% 20.2% 20.1% 15.9% 19.6% 0.6% 15.1% 15.1% 4.0% 3.2% 4.0% 16.4% 3.2% 4.0% 3.9% 3.0% 2.8% 12.9% 6.0% 3.3% 2.4% 4.9% 5.6% 5.4% 5.4% 4.4% 4.3% 4.4% 5.1% 4.0% 10.6% 11.7% 8.9% 10.1% 10.3% 8.3% 7.8% 7.9% 8.3% 6.6% -0.3% Q3 21 Q4 21 Q1 22 Q2 22 Q3 22
Slide 13: Consolidated Operating Income
Consolidated Operating Income GAAP Non-GAAP 84.4 120.2 66.4 95.3 87.2 84.7 50.9 72.9 41.0 36.0 Q3-21 Q4-21 Q1-22 Q2-22 Q3-22 Q3-21 Q4-21 Q1-22 Q2-22 Q3-22 USD millions
Slide 14: Consolidated Net Income
Consolidated Net Income GAAP Non-GAAP 53.0 82.1 68.8 41.0 62.8 56.7 54.1 33.1 24.7 15.1 Q3-21 Q4-21 Q1-22 Q2-22 Q3 22 Q3-21 Q4-21 Q1-22 Q2-22 Q3-22 USD millions
Slide 15: Balance Sheet & Cash flow
Balance Sheet & Cash flow USD in millions Q3 21 Q2 22 Q3 22 Cash and investments 1,158.0 1,607.0 1,571.3 Total Debt* 633.9 633.7 633.7 Cash and Investments Net of Debt 524.1 973.3 937.6 Inventory 304.7 470.3 561.4 Capital Expenditures, Net 27.7 48.6 31.5 Cash Flow From Operations 61.8 77.4 5.6 * The
Slide 16: Fourth Quarter Guidance
Fourth Quarter Guidance Revenue to be within the range of $855 million to $885 million Non-GAAP gross margin expected to be within the range of 27% to 30% Non-GAAP operating profit expected to be within the range of $115 million to $135 million Revenue from solar segment to be within the range of $8
Slide 17: Appendix
Append Sis ve te ew IX 9@ solar =>
Slide 18: 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, 2022 June 30, 2022 September 30, 2021 September 30, 2022 September 30, 2021 Gross profit (GAAP) 222,001 182,642 172,561 583,601 468,827 Revenues from finance componen
Slide 19: 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, 2022 June 30, 2022 September 30, 2021 September 30, 2022 September 30, 2021 Operating expenses (GAAP) 137,594 146,630 106,147 412,318 302,726 Stock-based compen
Slide 20: 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, 2022 June 30, 2022 September 30, 2021 September 30, 2022 September 30, 2021 Financial income (expense), net (GAAP) (33,025) (14,311) (5,751) (52,7
Slide 21: 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, 2022 June 30, 2022 September 30, 2021 September 30, 2022 September 30, 2021 Net income (GAAP) 24,743 15,084 53,048 72,950 128,216 Revenues from finance component (159)
Slide 22: 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, 2022 June 30, 2022 September 30, 2021 September 30, 2022 September 30, 2021 Net basic earnings per share (GAAP) 0.44 0.27 1.01 1.33 2.46 Revenues from finance compon
Slide 23: 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, 2022 June 30, 2022 September 30, 2021 September 30, 2022 September 30, 2021 Net diluted earnings per share (GAAP) 0.43 0.26 0.96 1.29 2.32 Revenues from finance co