Slide 1: Second Quarter 2023 Earnings Summary
Second Quarter 2023 Earnings Summary August 1st , 2023
Slide 2: Safe Harbor
External Safe Harbor Use of Forward-Looking Statements and Non-GAAP Measures 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 pos
Slide 3: Second Quarter 2023 Key Metrics
External Second Quarter 2023 Key Metrics 269.2MW/h Batteries Capacity Shipped 5.5M 4.3GW Power Optimizers Systems Shipped Shipped 334.6K $991.3M GAAP Revenues Inverters Shipped 3
Slide 4: Second Quarter Financial Results
External Second Quarter Financial Results Record GAAP revenues of $991.3 million Record revenues from solar segment of $947.4 million Revenues from “all other” segment of $43.7 million GAAP gross margin of 32.0% Non-GAAP gross margin* of 32.7% Gross margin from sales of solar segment 34.7% Record No
Slide 5: Noteworthy
External Noteworthy Record GAAP revenues of $991.3 million, up 5% q/q and 36% from the same quarter last year Record revenues in solar segment of $947.4 million, up 4% q/q and 38% from same quarter last year Record quarterly solar revenues in Germany, UK, Switzerland, South Africa and Thailand Sell
Slide 6: Quarterly GAAP Financial Results
External Quarterly GAAP Financial Results USD in millions* Q2 22 Q1 23 Q2 23 GAAP Revenues 727.8 943.9 991.3 GAAP Gross margin 25.1% 31.8% 32.0% GAAP Operating expenses 146.6 156.0 166.9 GAAP Operating income 36.0 144.2 150.4 GAAP Net income 15.1 138.4 119.5 GAAP Net diluted earnings per share 0.26
Slide 7: Quarterly Non-GAAP Financial Results
External Quarterly Non-GAAP Financial Results** USD in millions* Q2 22 Q1 23 Q2 23 Non-GAAP Revenues 727.6 943.7 991.1 Non-GAAP Gross margin 26.7% 32.6% 32.7% Non-GAAP Operating expenses 109.6 123.6 133.3 Non-GAAP Operating income 84.7 183.8 191.0 Non-GAAP Net income 56.7 174.5 157.4 Non-GAAP Net di
Slide 8: Units Shipped by Quarter
External Units Shipped by Quarter Power optimizers Inverters 6,674 6,441 329.7 334.6 6,123 315.3 5,724 5,531 5,123 5,215 264.5 5,011 4,699 230.8 228.4 211.1 197.3 179.5 Q2-21 Q3-21 Q4-21 Q1-22 Q2-22 Q3-22 Q4-22 Q1-23 Q2-23 Q2-21 Q3-21 Q4-21 Q1-22 Q2-22 Q3-22 Q4-22 Q1-23 Q2-23 units in thousands
Slide 9: Quarterly GAAP Revenues
External Quarterly GAAP Revenues 991.3 943.9 890.7 836.7 727.8 Q2-22 Q3-22 Q4-22 Q1-23 Q2-23 in USD millions
Slide 10: Gross Margin by Quarter
External Gross Margin by Quarter GAAP Non-GAAP* 31.8% 32.0% 32.6% 32.7% 29.3% 30.2% 26.5% 27.3% 26.7% 25.1% Q2-22 Q3-22 Q4-22 Q1-23 Q2-23 Q2-22 Q3-22 Q4-22 Q1-23 Q2-23 * Non-GAAP financial measures; see definition and reconciliation in Appendix
Slide 11: Solar Segment Gross Margin by Quarter
External Solar Segment Gross Margin by Quarter 35.0% 34.7% 32.4% 28.1% 28.3% Q2-22 Q3-22 Q4-22 Q1-23 Q2-23 % of revenues
Slide 12: Consolidated Operating Expenses by Quarter
External Consolidated* Operating Expenses by Quarter GAAP Non-GAAP** 29.9% 15.1% 2.8% 13.4% 13.1% 13.4% 12.9% 12.9% 2.4% 2.5% 2.8% 3.0% 20.1% 0.6% 4.4% 3.9% 16.4% 16.5% 16.8% 3.9% 3.6% 4.0% 3.5% 3.3% 3.4% 3.9% 3.7% 5.4% 5.1% 4.8% 4.3% 4.5% 7.9% 6.6% 6.9% 6.6% 7.0% 10.3% 8.9% 8.7% 8.3% 8.5% -0.3% -0.
Slide 13: Consolidated Operating Income by Quarter
External Consolidated* Operating Income by Quarter GAAP Non-GAAP** 150.4 183.8 191.0 144.2 149.6 120.2 84.4 84.7 36.0 -5.2 Q2-22 Q3-22 Q4-22 Q1-23 Q2-23 Q2-22 Q3-22 Q4-22 Q1-23 Q2-23 USD millions * For purposes of this presentation, “consolidated” refers to both solar and “all other” segments ** Non
Slide 14: Consolidated Net Income by Quarter
External Consolidated* Net Income by Quarter GAAP Non-GAAP** 138.4 171.5 174.5 157.4 119.5 56.7 54.1 24.7 20.8 15.1 Q2-22 Q3 22 Q4-22 Q1-23 Q2-23 Q2-22 Q3-22 Q4-22 Q1-23 Q2-23 USD millions * For purposes of this presentation, “consolidated” refers to both solar and “all other” segments ** Non-GAAP f
Slide 15: Balance Sheet & Cash flow
External Balance Sheet & Cash flow USD in millions Q2 22 Q1 23 Q2 23 Cash and investments 1,607.0 1,648.1 1,487.0 Total Debt 633.7 633.6 633.5 Cash and Investments Net of Debt 973.3 1,014.5 853.5 Inventory 470.3 874.2 984.2 Capital Expenditures, Net 48.6 38.1 45.3 Cash Flow From Operations 77.4 7.9
Slide 16: Third Quarter Guidance
External Third Quarter Guidance** Revenue to be within the range of $880 million to $920 million Non-GAAP gross margin* expected to be within the range of 28% to 31% Non-GAAP operating income* expected to be within the range of $115 million to $135 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 Q2-22 Q3-22 Q4-22 Q1-23 Q2-23 Gross profit (GAAP) 182,642 222,001 261,047 300,126 317,305 Revenues from finance component (146) (159) (174) (187) (202) Stock-based compensation 5,286 4,661 6,810 5,927 5,923 A
Slide 19: Reconciliation of GAAP to Non-GAAP
External Reconciliation of GAAP to Non-GAAP Reconciliation of GAAP to Non-GAAP Operating expenses Q2-22 Q3-22 Q4-22 Q1-23 Q2-23 Operating expenses (GAAP) 146,630 137,594 266,210 155,972 166,947 Stock-based compensation - R&D (16,819) (14,553) (16,854) (17,209) (17,272) Stock-based compensation - S&M
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 Q2-22 Q3-22 Q4-22 Q1-23 Q2-23 Financial income (expense), net (GAAP) (14,311) (33,025) 56,101 23,674 3,384 Non cash interest expense 2,427 2,505 2,685 2,892 3,105 Unrealized losses (gains)
Slide 21: Reconciliation of GAAP to Non-GAAP
External Reconciliation of GAAP to Non-GAAP Reconciliation of GAAP to Non-GAAP Net income Q2-22 Q3-22 Q4-22 Q1-23 Q2-23 Net income (GAAP) 15,084 24,743 20,829 138,378 119,510 Revenues from finance component (146) (159) (174) (187) (202) Disposal of assets related to Critical Power 4,314 ---- ---- --
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 Q2-22 Q3-22 Q4-22 Q1-23 Q2-23 Net basic earnings per share (GAAP) 0.27 0.44 0.37 2.46 2.12 Revenues from finance component 0.00 0.00 0.00 0.00 (0.01) Disposal of assets related to Critical
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 Q2-22 Q3-22 Q4-22 Q1-23 Q2-23 Net diluted earnings per share (GAAP) 0.26 0.43 0.36 2.35 2.03 Revenues from finance component 0.00 0.00 0.00 (0.01) (0.01) Disposal of assets related to Cr
Slide 24: Thank You
External Thank You