Slide 1: Calendar 3rd Quarter 2017 Earnings summary
Calendar 3rd Quarter 2017 Earnings summary November 8, 2017
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 $$ 2,041K optimizers 90K inverters 676 Megawatts $166.6M revenues shipped shipped shipped
Slide 4: Third Quarter Highlights
THIRD QUARTER HIGHLIGHTS Financial highlights for quarter Record revenue of $166.6 million, up 22% QoQ GAAP gross margin of 34.9% Record GAAP operating income of $25.4 million Record GAAP net income of $28.0 million Record Non-GAAP net income of $31.5 million Record cash flow from operation - $33.6M
Slide 5: Highlights
HIGHLIGHTS Record revenues from outside the United States (51% of total revenues), continuing last quarter’s significant growth in Germany and the Netherlands Two million optimizers shipped; aggregate of 20 million optimizers shipped since sales began in 2010 Commercial sales continue to increase St
Slide 6: Noteworthy
NOTEWORTHY Continued component allocation issues combined with high product demand require increase in air shipments and increased lead time Competitive landscape unchanged ASP environment remains stable New product family targeting a new market segment for SolarEdge
Slide 7: GAAP Financial Results
GAAP FINANCIAL RESULTS *USD in millions CQ3'17 CQ2'17 CQ3'16 Revenues 166.6 136.1 128.5 Gross margin 34.9% 34.6% 32.6% Operating expenses 32.7 28.0 23.6 Operating income 25.4 19.1 18.2 Net income 28.0 22.5 15.6 Net diluted earnings per share 0.61 0.50 0.35 *with the exception of gross margin and per
Slide 8: Non-GAAP Financial Results
NON-GAAP FINANCIAL RESULTS *USD in millions CQ3'17 CQ2'17 CQ3'16 Revenues 166.6 136.1 128.5 Gross margin 35.2% 35.0% 32.9% Operating expenses 28.7 24.4 20.9 Operating income 29.9 23.1 21.3 Net income 31.5 25.8 20.9 Net diluted earnings per share 0.66 0.55 0.46 *with the exception of gross margin and
Slide 9: Quarterly Revenues
QUARTERLY REVENUES USD millions 167 180 160 128 136 140 112 115 120 100 80 60 40 20 0 CQ3'16 cQ4'16 cQ1'17 cQ2'17 CQ3'17 solar Ee
Slide 10: Units Shipped
UNITS SHIPPED Optimizers shipped Inverters shipped
Slide 11: Gross Margin
GROSS MARGIN * *CQ4’16 gross margin included one time benefit of approximately 2%
Slide 12: Operating Expenses
OPERATING EXPENSES *CQ1’ 17 Operating expenses included accrual for doubtful debt, representing 1% of revenues
Slide 13: GAAP Operating Income
GAAP OPERATING INCOME USD millions
Slide 14: Non-GAAP Operating Income
—— NON-GAAP OPERATING INCOME —— USD millions 29.9 ye 30 23.1 25 21.3 ye 18.6 20 15.6 a4 15 10 5 0 CQ3'16 caa'l6 cqi'l7 CQ2'17 CQ3'17 solar Ee
Slide 15: GAAP Net Income
GAAP NET INCOME USD millions 28.0 30 25 22.5 20 15.6 14.2 15 9.8 10 5 0 €Q3'16 cQ4'16 cQi‘17 CQ2'17 C€Q3'17 solar Ee
Slide 16: Non-GAAP Net Income
NON-GAAP NET INCOME USD millions 35 31.5 30 25.8 25 20.9 20 14.7 16.5 15 10 5 0 CQ3'16 CQ4'16 CQ1'17 CQ2'17 CQ3'17
Slide 17: Balance Sheet & Cash Flow
BALANCE SHEET & CASH FLOW USD in millions CQ3'17 CQ2'17 CQ3'16 Cash and investments 304.7 274.7 206.7 Inventory 62.4 56.2 68.4 Capital Expenditures 5.6 5.7 3.8 Total Debt 0.0 0.0 0.0 Cash Flow From Operations 33.6 31.6 24.4
Slide 18: Fourth Quarter Guidance
FOURTH QUARTER GUIDANCE Revenues expected to be within the range of $175 million to $185 million Gross margin expected to be within the range of 33% to 35%
Slide 19: Appendix
solarzehr solarze{e-" Appendix
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, 2017 June 30, 2017 September 30,2016 September 30, 2017 September 30,2016 Gross profit (GAAP) 58,054 47,066 41,875 143,796 121,722 Stock-based compensation 538 517 38
Slide 21: Reconciliation of GAAP to Non-GAAP
RECONCILIATION OF GAAP TO NON-GAAP
Slide 22: Reconciliation of GAAP to Non-GAAP
RECONCILIATION OF GAAP TO NON-GAAP
Slide 23: Reconciliation of GAAP to Non-GAAP
RECONCILIATION OF GAAP TO NON-GAAP
Slide 24: NASDAQ | SEDG
solarzehr solarze{e-" NASDAQ | SEDG