Slide 1: First Quarter 2022 Earnings Summary
First Quarter 2022 Earnings Summary May 02, 2022
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 2022 Key Metrics
First Quarter 2022 Key Metrics 211.1K 2.1 GW Inverters Shipped 5.7M Systems Shipped Power Optimizers Shipped $655.1M GAAP Revenues 3
Slide 4: Financial Results for Quarter
Financial Results for Quarter Record GAAP revenue of $655.1 million Record revenue from solar segment of $608.0 million Revenues from non- solar segment of $46.9 million GAAP gross margin of 27.3% Non-GAAP gross margin of 28.4% Gross margin from sales of solar segment 30.2% Non-GAAP operating income
Slide 5: Noteworthy
Noteworthy Record GAAP quarterly revenues, for consolidated and for the solar business, growing quarter over quarter by over $100 million Record quarterly revenues in the US and 14 European countries, including Netherlands, Italy, Poland and Switzerland Approximately 100MWh of batteries shipped in Q
Slide 6: GAAP Quarterly Financial Results
GAAP Quarterly Financial Results USD in millions* Q1 21 Q4 21 Q1 22 Revenues 405.5 551.9 655.1 Gross margin 34.5% 29.1% 27.3% Operating expenses 95.9 119.5 128.1 Operating income 44.1 41.0 50.1 Net income 30.1 41.0 33.1 Net diluted earnings per share 0.55 0.74 0.60 * With the exception of gross marg
Slide 7: NON-GAAP Quarterly Financial Results
NON-GAAP Quarterly Financial Results USD in millions* Q1 21 Q4 21 Q1 22 Revenues 405.4 551.8 654.9 Gross margin 36.5% 30.3% 28.4% Operating expenses 76.2 94.1 98.9 Operating income 71.9 72.9 87.2 Net income 55.5 62.8 68.8 Net diluted earnings per share 0.98 1.10 1.20 * With the exception of gross ma
Slide 8: Units Shipped
Units Shipped Power optimizers Inverters 230.8 5,724 202.0 211.1 5,060 5,011 5,123 197.3 4,699 181.9 179.5 165.7 152.5 3,614 3,735 141.7 3,516 3,272 Q1 20 Q2 20 Q3 20 Q4 20 Q1 21 Q2 21 Q3 21 Q4 21 Q1 22 Q1 20 Q2 20 Q3 20 Q4 20 Q1 21 Q2 21 Q3 21 Q4 21 Q1 22 units in thousands
Slide 9: GAAP Revenues
GAAP Revenues 655.1 551.9 526.4 480.1 405.5 Q1 21 Q2 21 Q3 21 Q4 21 Q1 22 in USD millions
Slide 10: Gross Margin
Gross Margin GAAP Non-GAAP 36.5% 34.5% 33.9 % 34.0% 32.5% 32.8% 30.3% 29.1% 28.4% 27.3% Q1 21 Q2 21 Q3 21 Q4 21 Q1 22 Q1 21 Q2 21 Q3 21 Q4 21 Q1 22 % of revenues
Slide 11: Solar Segment Gross Margin
Solar Segment Gross Margin 39.7 % 37.4 % 36.6 % 32.8 % 30.2 % Q1 21 Q2 21 Q3 21 Q4 21 Q1 22 % of revenues
Slide 12: Consolidated Operating Expenses
Consolidated Operating Expenses GAAP Non-GAAP 23.7% 21.0% 21.6% 4.9% 20.2% 19.6% 18.8% 4.0% 4.0% 17.1% 4.0% 17.0% 15.9% 4.0% 4.1% 15.1% 3.2% 3.2% 6.6% 3.2% 6.1% 6.0% 3.0% 5.6% 5.4% 5.2% 4.9% 4.9% 4.4% 4.3% 11.6% 11.0% 10.6% 11.7% 10.1% 9.4% 8.9% 8.9% 8.3% 7.8% Q1 21 Q2 21 Q3 21 Q4 21 Q1 22 Q1 21 Q2
Slide 13: Consolidated Operating Income
Consolidated Operating Income GAAP Non-GAAP 95.2 87.2 81.3 71.9 72.9 66.4 55.6 50.1 44.1 41.0 Q1 21 Q2 21 Q3 21 Q4 21 Q1 22 Q1 21 Q2 21 Q3 21 Q4 21 Q1 22 USD millions
Slide 14: Consolidated Net Income
Consolidated Net Income GAAP Non-GAAP 82.1 72.5 68.8 62.8 53.0 55.5 45.1 41.0 30.1 33.1 Q1 21 Q2 21 Q3 21 Q4 21 Q1 22 Q1 21 Q2 21 Q3 21 Q4 21 Q1 22 USD millions
Slide 15: Balance Sheet & Cash flow
Balance Sheet & Cash flow USD in millions Q1 21 Q4 21 Q1 22 Cash and investments 1,165.2 1,181.9 1,612.8 Total Debt* 650.0 633.9 633.8 Cash and Investments Net of Debt 515.2 548.0 979.0 Inventory 340.0 380.1 432.5 Capital Expenditures 24.0 57.4 41.5 Cash Flow From Operations 24.1 89.6 (163.0) * The
Slide 16: Second Quarter Guidance
Second Quarter Guidance Revenue to be within the range of $710 million to $740 million Non-GAAP gross margin expected to be within the range of 26% to 29% Revenue from solar segment to be within the range of $660 million to $690 million Gross margin for the of solar segment expected to be within the
Slide 17: Appendix
Append Sis ve te ew IX 9@ 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 March 31, 2022 December 31, 2021 March 31, 2021 Gross profit (GAAP) 178,958 160,491 140,074 Revenues from finance component (135) (122) (86) Stock-based compensation 5,062 4,373 5,790 Cost of produc
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 March 31, 2022 December 31, 2021 March 31, 2021 Operating expenses (GAAP) 128,094 119,453 95,946 Stock-based compensation - R&D (14,985) (14,872) (8,798) Stock-based compensation - S&M (6,701)
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 March 31, 2022 December 31, 2021 March 31, 2021 Financial income (expense), net (GAAP) (5,449) (6,324) (6,097) Notes due 2025 728 727 724 Non cash interest 1,609 1,527 1,336 Unre
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 March 31, 2022 December 31, 2021 March 31, 2021 Net income (GAAP) 33,123 40,954 30,076 Revenues from finance component (135) (122) (86) Cost of product adjustment ---- ---- ---- Stock-based compensati
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 March 31, 2022 December 31, 2021 March 31, 2021 Net basic earnings per share (GAAP) 0.62 0.78 0.58 Revenues from finance component 0.00 0.00 ---- Cost of product adjustment ---- ---- ---- 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 March 31, 2022 December 31, 2021 March 31, 2021 Net diluted earnings per share (GAAP) 0.60 0.74 0.55 Revenues from finance component 0.00 0.00 ---- Cost of product adjustment ---- ---- ---- Stock