Slide 1: Fourth Quarter 2018 Earnings Summary
Fourth Quarter 2018 Earnings Summary February 20, 2019
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: our possible or assumed future results
Slide 3: Key Metrics
Key Metrics 3.1M 121K 1.1 GW $263.7M Power Optimizers Shipped Inverters Shipped Systems Shipped Revenues 3
Slide 4: Financial Results for Quarter
Financial Results for Quarter Record revenue of $263.7 million, up 39.3% YoY Record revenue from solar products $243.4 million GAAP operating income of $24.4 million GAAP net income of $12.9 million Non-GAAP net income of $31.5 million Net diluted Non GAAP earnings per share $0.63 Cash flow from ope
Slide 5: 2018 Highlights
2018 Highlights Record revenue of $937.2 million, up 54.4% YoY Revenue from solar products $914.3 million up 50.6% YoY Record GAAP gross income of $319.2 million GAAP gross margin of 34.1% Record GAAP operating income of $139.9 million Record GAAP net income of $128.0 million Record Non-GAAP net inc
Slide 6: Noteworthy
Noteworthy Record revenues and strong cash generation from operations Continued strong business in U.S. and rest or world First quarter reporting Kokam results Kokam revenues negatively impact gross margin due to orders taken prior to acquisition Started to invest in non solar businesses with aim to
Slide 7: GAAP Financial Results
GAAP Financial Results *USD in millions Q4 18 Q3 18 Q4 17 Revenues 263.7 236.6 189.3 Gross margin 30.2% 33.0% 37.5% Operating expenses 55.3 43.9 36.4 Operating income 24.4 34.0 34.6 Net income 12.9 45.6 19.5 Net diluted earnings per share 0.27 0.95 0.42 *With the exception of gross margin and per sh
Slide 8: NON-GAAP Financial Results
NON-GAAP Financial Results *USD in millions Q4 18 Q3 18 Q4 17 Revenues 263.7 236.6 189.3 Gross margin 30.9% 33.6% 37.9% Operating expenses 45.1 37.0 31.7 Operating income 36.4 42.5 40.0 Net income 31.5 42.7 41.2 Net diluted earnings per share 0.63 0.86 0.85 *With the exception of gross margin and pe
Slide 9: Units Shipped
Units Shipped Power optimizers shipped Inverters shipped 9
Slide 10: Quarterly Revenues
Quarterly Revenues USD Millions 300 250 209.9 200 189.3 150 100 50 0 Q417 Q1 18 10 227.1 Q2 18 236.6 Q3 18 Q4 18 solar eft
Slide 11: GAAP Gross Margins Trend by Quarters (%)
GAAP Gross Margins Trend by Quarters (%) 11
Slide 12: Operating Expenses
Operating Expenses* 12 * Include Kokam expenses first consolidated in Q4 18
Slide 13: Consolidated GAAP Operating Income
Consolidated GAAP Operating Income 13
Slide 14: Consolidated NON-GAAP Operating Income
Consolidated NON-GAAP Operating Income 14
Slide 15: Consolidated GAAP Net Income
Consolidated GAAP Net Income * Q4-17, Q1-18, and Q3-18 includes transition tax of $18.7M, $0.8M and a tax benefit of $10.3M 15 respectively. Q4-18 include provisional tax expense of $8.2M
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 Q4 17 Q3 18 Q4 18 Cash and investments 345.1 453.2 392.2 Inventory 83.0 107.2 141.5 Capital Expenditures 8.8 8.7 8.6 Total Debt - - 20.2 Cash Flow From Operations 45.8 34.3 46.9 *Debt balances relate to pre acquisition loans in Kokam 17
Slide 18: First Quarter Guidance
First Quarter Guidance Revenues to be within the range of $260 million to $270 million; Gross margins expected to be within the range of 30% to 32% Revenues from solar products to be within the range of $245 million to $255 million; Gross margins from sale of solar products expected to be within the
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 12 months ended December 31, 2018 September 30, 2018 December 31, 2017 December 31, 2018 December 31, 2017 Gross profit (GAAP) 79,711 77,982 70,970 319,236 214,766 Stock-based compensation 1,323 1,1
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 12 months ended December 31, 2018 September 30, 2018 December 31, 2017 December 31, 2018 December 31, 2017 Operating expenses (GAAP) 55,322 43,945 36,399 179,381 123,680 Stock-based compensati
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 12 months ended December 31, 2018 September 30, 2018 December 31, 2017 December 31, 2018 December 31, 2017 Financial expenses (income), net (GAAP) (288) 689 (1,487) 2,297 (9,158)
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 12 months ended December 31, 2018 September 30, 2018 December 31, 2017 December 31, 2018 December 31, 2017 Net income attributable to Solaredge Technologies
Slide 24: Reconciliation of GAAP to Non-GAAP
Reconciliation of GAAP to Non-GAAP Reconciliation of GAAP to Non-GAAP Net basic EPS Three months ended 12 months ended December 31, 2018 September 30, 2018 December 31, 2017 December 31, 2018 December 31, 2017 Net basic earnings per share (GAAP) 0.28 1.00 0.45 2.85 1.99 Cost of product adjustment 0.
Slide 25: NASDAQ | SEDG
NASDAQ | SEDG solar,