Slide 1: Second Quarter 2019 Earnings Summary
Second Quarter 2019 Earnings Summary August 6, 2019
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 Metrics
Key Metrics 3.7M 160K 1.3 GW $325.0M Power Optimizers Shipped Inverters Shipped Systems Shipped Revenues 3
Slide 4: Financial Results for Quarter
Financial Results for Quarter Record revenue of $325.0 million, up 19.5% QoQ and 43.1% YoY Record revenue from solar products $306.7 million GAAP gross margin of 34.1% Non-GAAP gross margin 35.7% Non-GAAP gross margin for the solar business 36.9% Record GAAP operating income of $45.4 million Record
Slide 5: Noteworthy
Noteworthy Record revenue, record Non-GAAP net income and record Non-GAAP net diluted EPS Geographic diversification of revenues continues; expecting strong demand for remainder of the year, led by the U.S. Non-GAAP gross margins of solar business strong at 37% Solar product manufacturing capacity i
Slide 6: GAAP Financial Results
GAAP Financial Results *USD in millions Q2 18 Q1 19 Q2 19 Revenues 227.1 271.9 325.0 Gross margin 36.1% 31.7% 34.1% Operating expenses 41.3 58.1 65.3 Operating income 40.7 28.0 45.4 Net income 34.6 19.0 33.1 Net diluted earnings per share** 0.72 0.39 0.66 *With the exception of gross margin and per
Slide 7: NON-GAAP Financial Results
NON-GAAP Financial Results *USD in millions Q2 18 Q1 19 Q2 19 Revenues 227.1 271.9 325.0 Gross margin 36.5% 32.8% 35.7% Operating expenses 35.1 48.0 54.9 Operating income 47.8 41.2 61.0 Net income 40.6 32.9 49.3 Net diluted earnings per share ** 0.82 0.64 0.94 *With the exception of gross margin and
Slide 8: Units Shipped
Units Shipped Power optimizers shipped Inverters shipped 8
Slide 9: Quarterly Revenues
Quarterly Revenues USD Millions 350 300 250 227.1 200 150 100 50 0 Q2 18 236.6 Q3 18 263.7 Q4 18 271.9 Q119 Q2 19 solar eft
Slide 10: GAAP Gross Margins Trend by Quarters (%)
GAAP Gross Margins Trend by Quarters (%) 10
Slide 11: Non-GAAP Gross Margins Trend by Quarters (%)
Non-GAAP Gross Margins Trend by Quarters (%) 11
Slide 12: Operating Expenses
Operating Expenses 25.0% 20.0% 15.0% 10.0% 5.0% 0.0% 12 7.3% 7.2% solar,
Slide 13: Consolidated GAAP Operating Income
Consolidated GAAP Operating Income 13
Slide 14: Consolidated NON-GAAP Operating Income
Consolidated NON-GAAP Operating Income 14
Slide 15: Consolidated GAAP Net Income
Consolidated GAAP Net Income * Q3-18 includes a tax benefit of $10.3M. 15 Q4-18 includes provisional tax expense of $8.2M.
Slide 16: Consolidated NON-GAAP Net Income
Consolidated NON-GAAP Net Income 16
Slide 17: Balance Sheet & Cash flow
Balance Sheet & Cash flow USD in millions Q2 18 Q1 19 Q2 19 Cash and investments* 437.6 398.7 373.6 Inventory 102.0 150.8 148.9 Capital Expenditures 10.1 10.6 11.7 Total Debt** - 24.3 22.0 Cash Flow From Operations 43.9 56.5 50.8 * A total amount of $213.8M, net, was paid for acquisitions between Ju
Slide 18: Third Quarter Guidance
Third Quarter Guidance Revenues to be within the range of $395 million to $410 million; Gross margins expected to be within the range of 32% to 34% Revenues from solar products to be within the range of $375 million to $390 million; Gross margins from sale of solar products expected to be within the
Slide 19: Appendix
Appendix solar,
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 Six months ended June 30, 2019 March 31, 2019 June 30, 2018 June 30, 2019 June 30, 2018 Gross profit (GAAP) 110,670 86,110 81,946 196,780 161,543 Stock-based compensation 1,651 1,354 968 3,005 1,892
Slide 21: Reconciliation of GAAP to Non-GAAP
Reconciliation of GAAP to Non-GAAP Reconciliation of GAAP to Non-GAAP Operating expenses Three months ended Six months ended June 30, 2019 March 31, 2019 June 30, 2018 June 30, 2019 June 30, 2018 Operating expenses (GAAP) 65,317 58,062 41,281 123,379 80,114 Stock-based compensation R&D (4,176) (3,49
Slide 22: 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 Six months ended June 30, 2019 March 31, 2019 June 30, 2018 June 30, 2019 June 30, 2018 Financial expenses (income), net (GAAP) (773) 6,151 2,480 5,378 1,896 Non cash interest (8
Slide 23: Reconciliation of GAAP to Non-GAAP
Reconciliation of GAAP to Non-GAAP Reconciliation of GAAP to Non-GAAP Net income Three months ended Six months ended June 30, 2019 March 31, 2019 June 30, 2018 June 30, 2019 June 30, 2018 Net income attributable to Solaredge Technologies Inc. (GAAP) 33,128 19,016 34,568 52,144 70,254 Cost of product
Slide 24: Reconciliation of GAAP to Non-GAAP
Reconciliation of GAAP to Non-GAAP Reconciliation of GAAP to Non-GAAP Net basic EPS Three months ended Six months ended June 30, 2019 March 31, 2019 June 30, 2018 June 30, 2019 June 30, 2018 Net basic earnings per share (GAAP) 0.69 0.40 0.76 1.10 1.57 Cost of product adjustment 0.01 0.02 ---- 0.02 -
Slide 25: Reconciliation of GAAP to Non-GAAP
Reconciliation of GAAP to Non-GAAP Reconciliation of GAAP to Non-GAAP Net diluted EPS Three months ended Six months ended June 30, 2019 March 31, 2019 June 30, 2018 June 30, 2019 June 30, 2018 Net diluted earnings per share (GAAP) 0.66 0.39 0.72 1.05 1.46 Cost of product adjustment ---- 0.01 ---- 0.
Slide 26: Reconciliation of GAAP to Non-GAAP
Reconciliation of GAAP to Non-GAAP Reconciliation of GAAP to Non-GAAP No. of shares used in Net diluted EPS Three months ended Six months ended June 30, 2019 March 31, 2019 June 30, 2018 June 30, 2019 June 30, 2018 Number of shares used in computing net diluted earnings per share (GAAP) 49,940,034 4
Slide 27: NASDAQ | SEDG
NASDAQ | SEDG solar,