Slide 1: Fourth Quarter 2021 Earnings Summary
Fourth Quarter 2021 Earnings Summary February 15, 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: Fourth Quarter 2021 Key Metrics
Fourth Quarter 2021 Key Metrics 197.3K 1.9 GW Inverters Shipped 5.1M Systems Shipped Power Optimizers Shipped $551.9M GAAP Revenues 3
Slide 4: 2021 Key Metrics
2021 Key Metrics 789.6K 7.2 GW Inverters Shipped 18.6M Systems Shipped Power Optimizers Shipped $2.0B GAAP Revenues 4
Slide 5: Financial Results for Quarter
Financial Results for Quarter Record GAAP revenue of $551.9 million Record revenue from solar segment of $502.7 million Revenues from non- solar segment of $49.1 million GAAP gross margin of 29.1% Non-GAAP gross margin of 30.3% Gross margin from sales of solar segment 32.8% Non-GAAP operating income
Slide 6: Financial Results for 2021
Financial Results for 2021 Record GAAP revenue of $1.96 billion Record revenue from solar segment of $1.79 billion Record revenues from non- solar segment of $176.2 million GAAP gross margin of 32.0% Non-GAAP gross margin of 33.5% Gross margin from solar segment 36.4% Record Non-GAAP operating incom
Slide 7: Noteworthy
Noteworthy Record GAAP annual revenues for both solar and non solar businesses, up 35% year over year Record annual solar revenue across all regions and practically all countries Record quarterly revenue solar growth driven by residential sales in U.S. Strong demand for commercial products, driven b
Slide 8: GAAP Quarterly Financial Results
GAAP Quarterly Financial Results USD in millions* Q4 20 Q3 21 Q4 21 Revenues 358.1 526.4 551.9 Gross margin 30.8% 32.8% 29.1% Operating expenses 95.9 106.1 119.5 Operating income 14.4 66.4 41.0 Net income 17.7 53.0 41.0 Net diluted earnings per share 0.33 0.96 0.74 * With the exception of gross marg
Slide 9: GAAP Yearly Financial Results
GAAP Yearly Financial Results USD in millions* 2019 2020 2021 Revenues 1,425.7 1,459.3 1,963.9 Gross margin 33.6% 31.6% 32.0% Operating expenses 289.4 318.8 422.2 Operating income 189.9 142.6 207.2 Net income 146.5 140.3 169.2 Net diluted earnings per share 2.90 2.66 3.06 * With the exception of gro
Slide 10: NON-GAAP Quarterly Financial Results
NON-GAAP Quarterly Financial Results USD in millions* Q4 20 Q3 21 Q4 21 Revenues 358.1 526.3 551.8 Gross margin 32.5% 34.0% 30.3% Operating expenses 72.9 83.8 94.1 Operating income 43.5 95.2 72.9 Net income 55.7 82.1 62.8 Net diluted earnings per share 0.98 1.45 1.10 * With the exception of gross ma
Slide 11: NON-GAAP Yearly Financial Results
NON-GAAP Yearly Financial Results USD in millions* 2019 2020 2021 Revenues 1,425.7 1,459.3 1,963.4 Gross margin 34.9% 33.0% 33.5% Operating expenses 220.9 263.5 335.6 Operating income 276.8 218.8 321.4 Net income 233.2 224.4 272.9 Net diluted earnings per share 4.44 4.11 4.81 * With the exception of
Slide 12: Units Shipped
Units Shipped Power optimizers shipped Inverters shipped K Units K Units 5,123 230.8 5,060 … 4,699 202.0 4,454 197.3 186.8 181.9 179.5 3,735 165.7 3,516 3,614 3,272 152.5 141.7 Q4 19 Q1 20 Q2 20 Q3 20 Q4 20 Q1 21 Q2 21 Q3 21 Q4 21 Q4 19 Q1 20 Q2 20 Q3 20 Q4 20 Q1 21 Q2 21 Q3 21 Q4 21 12
Slide 13: Units Shipped
Units Shipped Power optimizers shipped Inverters shipped K Units K Units 789.6 18,568 665.5 661.9 15,801 15,462 455.8 11,352 317.3 7,368 2017 2018 2019 2020 2021 2017 2018 2019 2020 2021 13
Slide 14: GAAP Quarterly Revenue
GAAP Quarterly Revenue USD Millions 551.9 526.4 480.1 405.5 358.1 Q4 20 Q1 21 Q2 21 Q3 21 Q4 21 14
Slide 15: GAAP Annual Revenue
GAAP Annual Revenue USD Millions 1,963.9 1,459.3 1,425.7 937.2 607.0 2017 2018 2019 2020 2021 15
Slide 16: Gross Margin Trend by Quarters (%)
Gross Margin Trend by Quarters (%) GAAP Non-GAAP 36.5 34.5 32.5 33.9 34.0 32.8 32.5 30.8 30.3 29.1 Q4 20 Q1 21 Q2 21 Q3 21 Q4 21 Q4 20 Q1 21 Q2 21 Q3 21 Q4 21 16
Slide 17: Gross Margin Annual Trend (%)
Gross Margin Annual Trend (%) GAAP Non-GAAP 35.4 35.7 34.1 33.6 34.6 34.9 31.6 32.0 33.0 33.5 2017 2018 2019 2020 2021 2017 2018 2019 2020 2021 17
Slide 18: Solar Segment Gross Margin Trend by Quarters (%)
Solar Segment Gross Margin Trend by Quarters (%) 39.7 36.2 37.4 36.6 32.8 Q4 20 Q1 21 Q2 21 Q3 21 Q4 21 18
Slide 19: Solar Segment Gross Margin Trend by Years (%)
Solar Segment Gross Margin Trend by Years (%) 35.4 36.2 36.4 35.7 35.0 2017 2018 2019 2020 2021 19
Slide 20: Quarterly Consolidated Operating Expenses
Quarterly Consolidated Operating Expenses GAAP Non-GAAP 26.8% 23.7% 5.0% 20.4% 21.0% 21.6% 20.2% 18.8% 4.9% 17.1% 4.0% 4.0% 4.0% 17.0% 4.0% 15.9% 8.1% 4.1% 3.2% 3.2% 6.6% 6.0% 3.2% 6.1% 5.6% 5.6% 5.2% 4.9% 4.9% 4.4% 13.3% 11.6% 11.0% 10.6% 11.7% 10.8% 9.4% 8.9% 8.3% 8.9% Q4 20 Q1 21 Q2 21 Q3 21 Q4 2
Slide 21: Annually Consolidated Operating Expenses
Annually Consolidated Operating Expenses GAAP Non-GAAP 22.1% 21.4% 20.4% 18.1% 19.2% 17.9% 18.1% 4.3% 17.1% 3.1% 2.2% 4.2% 16.0% 3.1% 2.4% 15.5% 3.6% 3.5% 2.2% 3.4% 2.9% 6.6% 6.1% 8.2% 7.4% 5.2% 7.3% 4.9% 6.2% 6.3% 5.3% 11.2% 11.2% 9.3% 8.8% 9.1% 8.8% 8.1% 7.5% 7.3% 8.5% -0.2% 2017 2018 2019 2020 20
Slide 22: Quarterly Consolidated Operating Income
Quarterly Consolidated Operating Income GAAP Non-GAAP 95.2 81.3 71.9 72.9 66.4 55.6 44.1 41.0 43.5 14.4 Q4 20 Q1 21 Q2 21 Q3 21 Q4 21 Q4 20 Q1 21 Q2 21 Q3 21 Q4 21 USD Millions 22
Slide 23: Annually Consolidated Operating Income
Annually Consolidated Operating Income GAAP Non-GAAP 321.4 276.8 207.1 218.8 189.9 174.3 139.4 142.6 91.1 108.7 2017 2018 2019 2020 2021 2017 2018 2019 2020 2021 USD Millions 23
Slide 24: Quarterly Consolidated Net Income
Quarterly Consolidated Net Income GAAP Non-GAAP 82.1 72.5 62.8 53.0 55.5 55.7 45.1 41.0 30.1 17.7 Q4 20 Q1 21 Q2 21 Q3 21 Q4 21 Q4 20 Q1 21 Q2 21 Q3 21 Q4 21 USD Millions 24
Slide 25: Annually Consolidated Net Income
Annually Consolidated Net Income GAAP Non-GAAP 272.9 233.2 224.4 169.2 146.5 140.3 128.8 157.3 115.0 84.2 2017 2018 2019 2020 2021 2017 2018 2019 2020 2021 USD Millions 25
Slide 26: Balance Sheet & Cash flow
Balance Sheet & Cash flow USD in millions Q4 20 Q3 21 Q4 21 Cash and investments 1,181.0 1,158.0 1,181.9 Total Debt* 650.8 633.9 633.9 Cash and Investments Net of Debt 530.2 524.1 548.0 Inventory 331.7 304.7 380.1 Capital Expenditures 35.5 27.7 57.4 Cash Flow From Operations 27.2 61.8 89.6 * The maj
Slide 27: First Quarter Guidance
First Quarter Guidance Revenue to be within the range of $615 million to $645 million; Non-GAAP gross margin expected to be within the range of 28% to 30%; Revenue from solar segment to be within the range of $575 million to $595 million; Gross margin for the of solar segment expected to be within t
Slide 28: Appendix
Appendix solar,
Slide 29: Reconciliation of GAAP to Non-GAAP
Reconciliation of GAAP to Non-GAAP Reconciliation of GAAP to Non-GAAP Gross Profit Three months ended Year ended December 31, 2021 September 30, 2021 December 31, 2020 December 31, 2021 December 31, 2020 Gross profit (GAAP) 160,491 172,561 110,325 629,318 461,359 Revenues from finance component (122
Slide 30: Reconciliation of GAAP to Non-GAAP
Reconciliation of GAAP to Non-GAAP Reconciliation of GAAP to Non-GAAP Operating expenses Three months ended Year ended December 31, 2021 September 30, 2021 December 31, 2020 December 31, 2021 December 31, 2020 Operating expenses (GAAP) 119,453 106,147 95,898 422,179 318,798 Stock-based compensation
Slide 31: 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 Year ended December 31, 2021 September 30, 2021 December 31, 2020 December 31, 2021 December 31, 2020 Financial expenses (income), net (GAAP) 6,324 5,751 (10,380) 19,915 (21,105)
Slide 32: Reconciliation of GAAP to Non-GAAP
Reconciliation of GAAP to Non-GAAP Reconciliation of GAAP to Non-GAAP Net income Three months ended Year ended December 31, 2021 September 30, 2021 December 31, 2020 December 31, 2021 December 31, 2020 Net income (GAAP) 40,954 53,048 17,655 169,170 140,322 Revenues from finance component (122) (111)
Slide 33: Reconciliation of GAAP to Non-GAAP
Reconciliation of GAAP to Non-GAAP Reconciliation of GAAP to Non-GAAP Net basic EPS Three months ended Year ended December 31, 2021 September 30, 2021 December 31, 2020 December 31, 2021 December 31, 2020 Net basic earnings per share (GAAP) 0.78 1.01 0.34 3.24 2.79 Revenues from finance component 0.
Slide 34: Reconciliation of GAAP to Non-GAAP
Reconciliation of GAAP to Non-GAAP Reconciliation of GAAP to Non-GAAP Net diluted EPS Three months ended Year ended December 31, 2021 September 30, 2021 December 31, 2020 December 31, 2021 December 31, 2020 Net diluted earnings per share (GAAP) 0.74 0.96 0.33 3.06 2.66 Revenues from finance componen
Slide 35: NASDAQ | SEDG
NASDAQ | SEDG solar,