Slide 1: Third Fiscal Quarter 2015 Earnings summary
Third Fiscal Quarter 2015 Earnings summary May 7, 2015
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 Operating Metrics
$$ KEY OPERATING METRICS 946K optimizers shipped 39K inverters shipped 248 Megawatts shipped $86M revenues
Slide 4: Fiscal Third Quarter Highlights
FISCAL THIRD QUARTER HIGHLIGHTS Financial highlights Record revenue of $86.4 million, up 18% from QoQ; 183% YoY GAAP gross margin of 27.4% GAAP net income of $6.0 million Non-GAAP net income of $8.7 million Business highlights Increased capacity with contract manufacturers 248 Megawatts AC inverters
Slide 5: Noteworthy
NOTEWORTHY Continued on-time development of next generation products to further improve usability, compliance and efficiency at reduced cost Inverter prices in the US face pressure, especially from European manufacturers benefitting from lower Euro/Dollar exchange rate Natural hedging is required to
Slide 6: Strategy and Technology
STRATEGY AND TECHNOLOGY After years of market decline in Germany, we see stabilization of this market In recent years, while the European market shrunk in size, SolarEdge successfully increased market share. We are now expecting further growth, primarily in Germany, the UK and the Netherlands as wel
Slide 7: Financial Results
USD in millions* FYQ3 '15 FYQ2 '15 FYQ3 '14 Revenues 86.4 73.3 30.6 Gross margin 27.4% 21.5% 20.4% Operating expenses 13.9 11.5 10.8 Operating income 9.8 4.2 -4.5 Net income 6.0 3.4 -5.2 Net diluted earnings per shar e 0.01 0.00 -1.87 FINANCIAL RESULTS *with the exception of gross margin and per sha
Slide 8: Non-GAAP Financial Results
USD in millions* FYQ3 '15 FYQ2 '15 FYQ3 '14 Revenues 86.4 73.3 30.6 Gross margin 27.6% 21.6% 20.5% Operating expenses 13.1 11.2 10.5 Operating income 10.8 4.7 -4.3 Net income 8.7 4.1 -5.0 Net diluted Earnings Per Share 0.20 0.12 -0.19 NON-GAAP FINANCIAL RESULTS *with the exception of gross margin an
Slide 9: Revenue Growth
REVENUE GROWTH 183% YoY USD millions
Slide 10: Units Shipped
UNITS SHIPPED Optimizers shipped Inverter shipped K units Units
Slide 11: Gross Margin
29.0% 27.0% 25.0% 23.0% 21.0% 19.0% 17.0% 15.0% 27.4% 21.5% 20.9% 20.4% | 1 | FYQ'314 FYQ'414 FYQ'1L15 FYQ'215 FYQ'315 solarikE
Slide 12: Operating Expenses
OPERATING EXPENSES 35.3% 25.0% 17.4% 15.8% 16.1%* * 15.4% excluding IPO related expenses
Slide 13: Net Income
NET INCOME GAAP Non-GAAP om 4 oct 4 a se ao es FYQ'314 FYQ'414 FYQ'115 FYQ'215 FYQ'3 15 FYQ’'314 FYQ’414 FYQ'115 FYQ'215 FYQ'315 solarikE
Slide 14: Balance Sheet & Cash Flow
USD in millions FYQ3 '15 FYQ2 '15 FYQ3 '14 Cash and investments 138.8 27.2 12.9 Inventory 64.5 47.6 25.2 Capital Expenditures* 5.1 2.1 0.8 Total Debt - 4.7 19.1 Cash Flow From Operations -13.0 9.7 -4.9 BALANCE SHEET & CASH FLOW *FYQ3 ‘15 includes $3.5M related to leasehold improvements
Slide 15: Fiscal Fourth Quarter Outlook
FISCAL FOURTH QUARTER OUTLOOK Revenues to be within the range of $92-96 million Gross margin to be within the range of 26%-28%
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Slide 17: Reconciliation of GAAP to Non-GAAP
Reconciliation of GAAP to Non-GAAP Gross Profit FYQ3 '15 FYQ2 '15 FYQ3 '14 Gross profit (GAAP) 23,701 15,781 6,229 Stock-based compensation 140 77 33 Gross profit (Non-GAAP) 23,841 15,858 6,262 Reconciliation of GAAP to Non-GAAP Gross Margin FYQ3 '15 FYQ2 '15 FYQ3 '14 Gross margin (GAAP) 27.4% 21.5%
Slide 18: Reconciliation of GAAP to Non-GAAP
Reconciliation of GAAP to Non-GAAP Operating income (loss) FYQ3 '15 FYQ2 '15 FYQ3 '14 Operating income (loss) (GAAP) 9,799 4,234 (4,545) Stock-based compensation 970 460 278 Operating income (loss) (Non-GAAP) 10,769 4,694 (4,267) Reconciliation of GAAP to Non-GAAP Finance expenses FYQ3 '15 FYQ2 '15
Slide 19: Reconciliation of GAAP to Non-GAAP
Reconciliation of GAAP to Non-GAAP Net basic EPS FYQ3 '15 FYQ2 '15 FYQ3 '14 Net basic earnings (loss) per share (GAAP) 0.01 0.00 (1.87) Stock-based compensation 0.03 0.00 0.01 Warrants remeasurement 0.04 0.01 ---- Additional earnings per share giving effect to IPO and conversion of preferred stock a
Slide 20: Reconciliation of GAAP to Non-GAAP
Reconciliation of GAAP to Non-GAAP Net diluted EPS FYQ3 '15 FYQ2 '15 FYQ3 '14 Net diluted earnings (loss) per share (GAAP) 0.01 0.00 (1.87) Stock-based compensation 0.02 0.00 0.01 Warrants remeasurement 0.04 0.01 ---- Additional earnings per share giving effect to IPO and conversion of preferred sto
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