Slide 1: Third Quarter 2021 Earnings Summary
Third Quarter 2021 Earnings Summary November 2, 2021
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: Third Quarter Key Metrics
Third Quarter Key Metrics 230.8K 1.9 GW Inverters Shipped 4.7M Systems Shipped Power Optimizers Shipped $526.4M GAAP Revenues 3
Slide 4: Financial Results for Quarter
Financial Results for Quarter Record GAAP revenue of $526.4 million Record revenue from solar segment of $476.8 million Record revenues from non- solar segment of $49.5 million GAAP gross margin of 32.8% Non-GAAP gross margin of 34.0% Gross margin from sales of solar segment 36.6% Non-GAAP operating
Slide 5: Noteworthy
Noteworthy Record revenues overall in both solar and non solar segments Record revenues in Europe driven by record revenues in Germany and Italy Overcame operational challenges from 12 week covid-related shutdown of Vietnam factory Battery installations began in the United States and Europe, first d
Slide 6: GAAP Quarterly Financial Results
GAAP Quarterly Financial Results *USD in millions Q3 20 Q2 21 Q3 21 Revenues 338.1 480.1 526.4 Gross margin 32.0% 32.5% 32.8% Operating expenses 77.7 100.6 106.1 Operating income 30.4 55.6 66.4 Net income 43.8 45.1 53.0 Net diluted earnings per share 0.83 0.82 0.96 * With the exception of gross marg
Slide 7: NON-GAAP Quarterly Financial Results
NON-GAAP Quarterly Financial Results *USD in millions Q3 20 Q2 21 Q3 21 Revenues 338.1 480.0 526.3 Gross margin 33.5% 33.9% 34.0% Operating expenses 63.2 81.5 83.8 Operating income 50.0 81.3 95.2 Net income 65.9 72.5 82.1 Net diluted earnings per share 1.21 1.28 1.45 * With the exception of gross ma
Slide 8: Units Shipped
Units Shipped Power optimizers shipped Inverters shipped K Units K Units 5,500 240 230.8 5,060 5,011 5,000 220 4,587 4,454 4,699 202.0 4,500 200 187.9 186.8 181.9 179.5 4,000 180 165.7 3,614 3,735 3,516 160 152.5 3,500 3,272 141.7 140 3,000 120 2,500 100 2,000 80 1,500 60 1,000 40 500 20 - 0 Q3 19 Q
Slide 9: GAAP Quarterly Revenue
GAAP Quarterly Revenue USD Millions 600 500 400 338.1 300 200 100 0 Q3 20 358.1 Q4 20 405.5 Qi21 480.1 Q221 526.4 Q3 21 solarzekT
Slide 10: Gross Margin Trend by Quarters (%)
Gross Margin Trend by Quarters (%) GAAP Non-GAAP 40% 40% 36.5% 35% 34.5% 35% 33.5% 33.9% 34.0% 32.0% 32.5% 32.8% 32.5% 30.8% 30% 30% 25% 25% 20% 20% 15% 15% 10 % 10% 5% 5% 0% 0% Q3 20 Q4 20 Q1 21 Q2 21 Q3 21 Q3 20 Q4 20 Q1 21 Q2 21 Q3 21 10
Slide 11: Solar Segment Gross Margin Trend by Quarters (%)
Solar Segment Gross Margin Trend by Quarters (%) 45 % 40 % 39.7% 37.4% 36.6% 34.8% 36.2% 35 % 30 % 25 % 20 % 15 % 10 % 5% 0% Q3 20 Q4 20 Q1 21 Q2 21 Q3 21 11
Slide 12: Consolidated Operating Expenses
Consolidated Operating Expenses GAAP Non-GAAP 28.0% 26.8% 28.0% 23.7% 23.0% 5.0% 23.0% 21.0% 23.0% 4.4% 20.2% 20.4% 4.9% 18.7% 18.8% 4.0% 18.0% 4.0% 18.0% 4.0% 17.0% 8.1% 3.5% 15.9% 4.1% 6.5% 6.7% 3.2% 6.2% 3.2% 13.0% 5.6% 13.0% 5.6% 5.2% 5.3% 4.9% 4.4% 8.0% 8.0% 12.1% 13.3% 11.6% 11.0% 10.6% 10.8%
Slide 13: Consolidated Operating Income
Consolidated Operating Income GAAP Non-GAAP 100 100 95.2 90 90 81.3 80 80 71.9 70 66.4 70 60 55.6 60 50 50.0 44.1 50 43.5 40 40 30.4 30 30 20 14.4 20 10 10 0 0 Q3 20 Q4 20 Q1 21 Q2 21 Q3 21 Q3 20 Q4 20 Q1 21 Q2 21 Q3 21 USD Millions 13
Slide 14: Consolidated Net Income
Consolidated Net Income GAAP Non-GAAP 100 100 90 90 80 82.1 80 72.5 70 70 65.9 60 55.7 53.0 60 55.5 50 45.1 43.8 50 40 40 30 30.1 30 17.7 20 20 10 10 0 0 Q3 20 Q4 20 Q1 21 Q2 21 Q3 21 Q3 20 Q4 20 Q1 21 Q2 21 Q3 21 USD Millions 14
Slide 15: Balance Sheet & Cash flow
Balance Sheet & Cash flow USD in millions Q3 20 Q2 21 Q3 21 Cash and investments 1,201.9 1,143.2 1,158.0 Total Debt* 648.1 633.9 633.9 Cash and Investments Net 553.8 509.3 524.1 of Debt Inventory 297.0 321.9 304.7 Capital Expenditures 36.4 39.9 27.7 Cash Flow From Operations 28.4 38.7 61.8 * The maj
Slide 16: Fourth Quarter Guidance
Fourth Quarter Guidance Revenue to be within the range of $530 million to $560 million; Non-GAAP gross margin expected to be within the range of 30% to 32%; Revenue from solar segment to be within the range of $490 million to $515 million; Gross margin from sale of solar segment expected to be withi
Slide 17: Appendix
Appendix 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 Nine months ended September 30, 2021 June 30, 2021 September 30, 2020 September 30, 2021 September 30, 2020 Gross profit (GAAP) 172,561 156,192 108,063 468,827 351,034 Revenues from finance componen
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 Nine months ended September 30, 2021 June 30, 2021 September 30, 2020 September 30, 2021 September 30, 2020 Operating expenses (GAAP) 106,147 100,633 77,669 302,726 222,900 Stock-based compens
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 Nine months ended September 30, 2021 June 30, 2021 September 30, 2020 September 30, 2021 September 30, 2020 Financial expenses (income), net (GAAP) 5,751 1,743 (15,765) 13,591 (1
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 Nine months ended September 30, 2021 June 30, 2021 September 30, 2020 September 30, 2021 September 30, 2020 Net income (GAAP) 53,048 45,092 43,751 128,216 122,667 Revenues from finance component (111)
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 Nine months ended September 30, 2021 June 30, 2021 September 30, 2020 September 30, 2021 September 30, 2020 Net basic earnings per share (GAAP) 1.01 0.87 0.87 2.46 2.46 Revenues from finance compon
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 Nine months ended September 30, 2021 June 30, 2021 September 30, 2020 September 30, 2021 September 30, 2020 Net diluted earnings per share (GAAP) 0.96 0.82 0.83 2.32 2.33 Revenues from finance co
Slide 24: NASDAQ | SEDG
NASDAQ | SEDG solar,