Slide 1: First Quarter 2021 Earnings Summary
First Quarter 2021 Earnings Summary May 3, 2021
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 182K 1.69 GW Inverters Shipped 3.7M Systems Shipped Power Optimizers Shipped $405.5M Revenues GAAP 3
Slide 4: Financial Results for Quarter
Financial Results for Quarter GAAP Revenue of $405.5 million Revenue from solar products of $376.4 million Total cash and investments, net of debt, $515.2 million GAAP gross margin of 34.5% Non-GAAP gross margin of 36.5% Record Non-GAAP gross margin from sales of solar products 39.7% GAAP operating
Slide 5: Noteworthy
Noteworthy Quarter over quarter revenue growth with record revenues in Australia, Italy and France Continued growth in residential shipments in all geographies, including record residential revenues in the Netherlands and Australia Initial signs of recovery in commercial, with quarter over quarter m
Slide 6: GAAP Quarterly Financial Results
GAAP Quarterly Financial Results *USD in millions Q1 20 Q4 20 Q1 21 Revenues 431.2 358.1 405.5 Gross margin 32.5% 30.8% 34.5% Operating expenses 72.2 95.9 95.9 Operating income 67.8 14.4 44.1 Net income 42.2 17.7 30.1 Net diluted earnings per share 0.81 0.33 0.55 * With the exception of gross margin
Slide 7: NON-GAAP Quarterly Financial Results
NON-GAAP Quarterly Financial Results *USD in millions Q1 20 Q4 20 Q1 21 Revenues 431.2 358.1 405.4 Gross margin 33.6% 32.5% 36.5% Operating expenses 66.3 72.9 76.2 Operating income 78.6 43.5 71.9 Net income 50.7 55.7 55.5 Net diluted earnings per share 0.95 0.98 0.98 * With the exception of gross ma
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 4,587 4,454 187.9 186.8 181.9 4,500 180.0 160.1 165.7 4,000 3,731 3,735 160.0 152.5 3,516 3,614 141.7 3,500 3,272 140.0 130.7 3,029 3,000 120.0 2,500 100.0 2,000 80.0 1,500 60.0 1,000 40.0 50
Slide 9: Quarterly Revenue GAAP
Quarterly Revenue GAAP USD Millions 450 431.2 405.5 400 358.1 350 3319 338.1 300 250 200 150 100 50 0 Qi 20 Q2 20 Q3 20 Q4 20 Qi 21 9 solarzekT
Slide 10: Gross Margin Trend by Quarters (%)
Gross Margin Trend by Quarters (%) GAAP Non-GAAP 40% 40% 36.5% 35% 34.5% 35% 33.6% 33.5% 32.5% 32.4% 32.5% 31.0% 32.0% 30.8% 30% 30% 25% 25% 20% 20% 15% 15% 10 % 10% 5% 5% 0% 0% Q1 20 Q2 20 Q3 20 Q4 20 Q1 21 Q1 20 Q2 20 Q3 20 Q4 20 Q1 21 10
Slide 11: Solar Gross Margin Trend by Quarters (%)
Solar Gross Margin Trend by Quarters (%) GAAP Non-GAAP 45% 45% 39.7% 40% 38.3% 40% 36.2% 34.6% 35.3% 35.0% 33.8% 34.8% 35% 33.1% 34.1% 35% 30 % 30% 25% 25% 20% 20% 15% 15% 10% 10% 5% 5% 0% 0% Q1 20 Q2 20 Q3 20 Q4 20 Q1 21 Q1 20 Q2 20 Q3 20 Q4 20 Q1 21 11
Slide 12: Consolidated Operating Expenses
Consolidated Operating Expenses GAAP Non-GAAP 28.0% 26.8% 28.0% 0.4% 23.7% 23.0% 5.0% 0.5% 23.0% 22.0% 23.0% 4.4% 4.9% 20.4% 4.2% 18.7% 18.8% 18.0% 16.8% 18.4% 4.0% 8.1% 18.0% 3.5% 3.5% 4.1% 3.8% 15.4% 6.5% 6.7% 6.3% 13.0% 3.3% 5.6% 13.0% 5.2% 5.2% 5.6% 5.2% 4.8% 8.0% 8.0% 12.1% 13.3% 11.5% 11.6% 10
Slide 13: Consolidated Operating Income
Consolidated Operating Income GAAP Non-GAAP 80 80 70.6 70 67.8 71.9 70 60 60 50 50.0 44.1 50 46.6 40 43.5 40 30.0 30.4 30 30 20 20 14.4 10 10 0 0 Q1 20 Q2 20 Q3 20 Q4 20 Q1 21 Q1 20 Q2 20 Q3 20 Q4 20 Q1 21 USD Millions 13
Slide 14: Consolidated Net Income
Consolidated Net Income GAAP Non-GAAP 70 70 65.9 60 60 55.7 55.5 50.7 52.1 50 50 42.2 43.8 40 36.7 40 30.1 30 30 20 17.7 20 10 10 0 0 Q1 20 Q2 20 Q3 20 Q4 20 Q1 21 Q1 20 Q2 20 Q3 20 Q4 20 Q1 21 USD Millions 14
Slide 15: Balance Sheet & Cash flow
Balance Sheet & Cash flow USD in millions Q1 20 Q4 20 Q1 21 Cash and investments 558.7 1,181.0 1,165.2 Total Debt* 15.1 650.8 650.0 Cash and Investments Net 543.6 530.2 515.2 of Debt Inventory 198.6 331.7 340.0 Capital Expenditures 27.1 35.5 24.0 Cash Flow From Operations 107.7 27.0 24.1 * The major
Slide 16: Second Quarter Guidance
Second Quarter Guidance Revenue to be within the range of $445 million to $465 million; Non-GAAP gross margin expected to be within the range of 32% to 34%; Revenue from solar products to be within the range of $405 million to $420 million; Non-GAAP gross margin from sale of solar products expected
Slide 17: Appendix
Appendix 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 December 31, March 31, 2021 2020 March 31, 2020 Gross profit (GAAP) 140,074 110,325 140,008 Revenues from finance component (86) ---- ---- Stock-based compensation 5,790 3,720 2,273 Cost of product
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 December 31, March 31, 2021 2020 March 31, 2020 Operating expenses (GAAP) 95,946 95,898 72,233 Stock-based compensation - R&D (8,798) (8,919) (5,378) Stock-based compensation - S&M (5,435) (8,
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 December 31, March 31, 2021 2020 March 31, 2020 Financial expenses (income), net (GAAP) 6,097 (10,380) 16,605 Notes due 2025 (724) (3,017) ---- Non cash interest (1,336) (1,305)
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 December 31, March 31, 2021 2020 March 31, 2020 Net income (GAAP) 30,076 17,655 42,248 Revenues from finance component (86) ---- ---- Cost of product adjustment ---- ---- 313 Stock-based compensation
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 December 31, March 31, 2021 2020 March 31, 2020 Net basic earnings per share (GAAP) 0.58 0.34 0.86 Revenues from finance component 0.00 ---- ---- Cost of product adjustment ---- ---- 0.01 Stock-bas
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 December 31, March 31, 2021 2020 March 31, 2020 Net diluted earnings per share (GAAP) 0.55 0.33 0.81 Revenues from finance component 0.00 ---- ---- Cost of product adjustment ---- ---- 0.01 Stock
Slide 24: NASDAQ | SEDG
NASDAQ | SEDG solar,