Slide 1: Third Quarter 2019 Earnings Summary
Third Quarter 2019 Earnings Summary November 6, 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 4.6M 188K 1.5 GW $410.6M Power Optimizers Shipped Inverters Shipped Systems Shipped Revenues 3
Slide 4: Financial Results for Quarter
Financial Results for Quarter Record revenue of $410.6 million, up 26.3% QoQ and 73.5% YoY Record revenue from solar products of $387.8 million GAAP gross margin of 33.9% Non-GAAP gross margin of 35.1% Non-GAAP gross margin for the solar business of 35.4% Record GAAP operating income of $66.0 millio
Slide 5: Noteworthy
Noteworthy Record revenue, record Non-GAAP net income and record Non-GAAP net diluted EPS Revenues for first nine months of 2019 surpassed $1 billion Strong growth and record revenues in the U.S. and in Europe Welcome to Uri Bechor, Chief Operating Officer Manufacturing capacity ramp is on schedule
Slide 6: GAAP Financial Results
GAAP Financial Results *USD in millions Q3 18 Q2 19 Q3 19 Revenues 236.6 325.0 410.6 Gross margin 33.0% 34.1% 33.9% Operating expenses 43.9 65.3 73.3 ** Operating income 34.0 45.4 66.0 Net income 45.6 33.1 41.6 Net diluted earnings per share 0.95 0.66 0.81 *With the exception of gross margin and per
Slide 7: NON-GAAP Financial Results
NON-GAAP Financial Results *USD in millions Q3 18 Q3 18 Q2 19 Q2 19 Q3 19 Q3 19 Revenues 236.6 236.6 325.0 325.0 410.6 410.6 Gross margin 33.6% 33.6% 35.7% 35.7% 35.1% 35.1% Operating expenses 37.0 37.0 54.9 54.9 54.8 54.8 Operating income 42.5 42.5 61.0 61.0 89.2 89.2 Net Net income income 42.7 42.
Slide 8: Units Shipped
Units Shipped Power optimizers shipped Inverters shipped 8
Slide 9: Quarterly Revenues
Quarterly Revenues USD Millions 450 400 350 300 250 200 150 100 236.6 Q3 18 263.7 Q4 18 271.9 Q119 325.0 Q219 410.6 Q319 solar
Slide 10: GAAP Gross Margins Trend by Quarters (%)
GAAP Gross Margins Trend by Quarters (%) Q3 19 result represents 254 basis points of higher air shipments compared to Q2 10
Slide 11: Non-GAAP Gross Margins Trend by Quarters (%)
Non-GAAP Gross Margins Trend by Quarters (%) Q3 19 result represents 254 basis points of higher air shipments compared to Q2 11
Slide 12: GAAP Operating Expenses
GAAP Operating Expenses 25.0% 21.1% 21.4% 20.0% 20.1% Non - 18.6% 17.9% Reccuring 5 Event 15.0% GBA 39 7A% aE ait ° 6.8% mS&M 10.0% 5.4% R&D 5.0% 0.0% Q3 18 Q418 Qi19 Q219 Q3.19 12 solar,
Slide 13: Consolidated GAAP Operating Income
Consolidated GAAP Operating Income * Q3 19 includes a non–recurring expense of $8.3M. 13
Slide 14: Consolidated NON-GAAP Operating Income
Consolidated NON-GAAP Operating Income 14
Slide 15: Consolidated GAAP Net Income
Consolidated GAAP Net Income Q3-18 includes a tax benefit of $10.3M. 15 Q4-18 includes a provisional tax expense of $8.2M. Q3-19 includes a non-recurring expense of $8.3M.
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 Q3 18 Q2 19 Q3 19 Cash and investments* 453.2 373.6 432.9 Inventory 107.2 148.9 134.3 Capital Expenditures 8.7 11.7 17.4 Total Debt** - 22.0 21.0 Cash Flow From Operations 34.3 50.8 68.7 * A total amount of $214.4M, net, was paid for acquisitions between Jul
Slide 18: Fourth Quarter Guidance
Fourth Quarter Guidance Revenues to be within the range of $410 million to $420 million; Gross margins expected to be within the range of 32% to 34%; Revenues from solar products to be within the range of $388 million to $398 million; Gross margins from sale of solar products expected to be within t
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 Nine months ended September 30, June 30, September 30, September 30, September 30, 2019 2019 2018 2019 2018 Gross profit (GAAP) 139,309 110,670 77,982 336,089 239,525 Stock-based compensation 1,691
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 Nine months ended September 30, June 30, September 30, September 30, September 30, 2019 2019 2018 2019 2018 Operating expenses (GAAP) 73,292 65,317 43,945 196,671 124,059 Stock-based compensat
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 Nine months ended September 30, June 30, September 30, September 30, September 30, 2019 2019 2018 2019 2018 Financial expenses (income), net (GAAP) 17,023 (773) 689 22,401 2,585
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 Nine months ended September 30, June 30, September 30, September 30, September 30, 2019 2019 2018 2019 2018 Net income attributable to Solaredge Technologie
Slide 24: Reconciliation of GAAP to Non-GAAP
Reconciliation of GAAP to Non-GAAP Reconciliation of GAAP to Non-GAAP Net basic earnings per share Three months ended Nine months ended September 30, June 30, September 30, September 30, September 30, 2019 2019 2018 2019 2018 Net basic earnings per share (GAAP) 0.86 0.69 1.00 1.97 2.57 Cost of produ
Slide 25: Reconciliation of GAAP to Non-GAAP
Reconciliation of GAAP to Non-GAAP Reconciliation of GAAP to Non-GAAP Net diluted earnings per share Three months ended Nine months ended September 30, June 30, September 30, September 30, September 30, 2019 2019 2018 2019 2018 Net diluted earnings per share (GAAP) 0.81 0.66 0.95 1.87 2.41 Cost of p
Slide 26: NASDAQ | SEDG
NASDAQ | SEDG solar,