Slide 1: Calendar First Quarter 2018 Earnings Summary
Calendar First Quarter 2018 Earnings summary May 09, 2018
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 $$ 2.5M optimizers 100K inverters 800 Megawatts $209.9M revenues shipped shipped shipped
Slide 4: First Quarter Highlights
FIRST QUARTER HIGHLIGHTS Financial highlights for quarter Record revenue of $209.9 million, up 10.8% QoQ Record GAAP gross margin of 37.9% Record GAAP operating income of $40.8 million Record GAAP net income of $35.7 million Record Non-GAAP net income of $42.6 million Record cash flow from operation
Slide 5: Noteworthy
NOTEWORTHY Record quarter performance in all financial parameters: revenues, gross margin, profitability and quarterly cash flow generation Record gross margin of 37.9%, stable ASP and continued cost reduction Record high sales in APAC, representing 13% of revenues Launched grid services and virtual
Slide 6: Noteworthy
NOTEWORTHY Announced purchase of assets of Gamatronic Electronics Ltd. that develops, manufactures and sells Uninterruptible Power Supply systems (UPS) Gamatronic’s UPS business will serve as a basis for a new SolarEdge business unit Products include UPS systems of a wide range of outputs, monitorin
Slide 7: GAAP Financial Results
GAAP FINANCIAL RESULTS *USD in millions Q1 18 Q4 17 Q1 17 Revenues 209.9 189.3 115.1 Gross margin 37.9% 37.5% 33.6% Operating expenses 38.8 36.4 26.7 Operating income 40.8 34.6 12.0 Net income 35.7 19.5 14.2 Net diluted earnings per share 0.75 0.42 0.32 *With the exception of gross margin and per sh
Slide 8: Non-GAAP Financial Results
NON-GAAP FINANCIAL RESULTS *USD in millions Q1 18 Q4 17 Q1 17 Revenues 209.9 189.3 115.1 Gross margin 38.4% 37.9% 34.0% Operating expenses 32.8 31.7 23.6 Operating income 47.7 40.0 15.6 Net income 42.6 41.2 16.5 Net diluted earnings per share 0.87 0.85 0.36 *With the exception of gross margin and pe
Slide 9: Quarterly Revenues
QUARTERLY REVENUES USD millions 250 200 150 115 100 50 0 Q117 Q217 Q417 Q1138 solani
Slide 10: Units Shipped
UNITS SHIPPED Optimizers shipped Inverters shipped K Units
Slide 11: Gross Margin
40% 35% 30% 25% 20% 15% 33.6% Qli17 GROSS MARGIN | | i Q317 37.5% 37.9% Q417 solani
Slide 12: Operating Expenses Percentage
OPERATING EXPENSES PERCENTAGE *Q1 17 operating expenses included accrual for doubtful debt, representing 1% of revenues
Slide 13: GAAP Operating Income
—— GAAP OPERATING INCOME ———— USD millions 50 40.8 aa 34.6 aad a, 25.4 30 aT, 19.1 a4 20 12.0 a, 0 Q117 Q217 Q317 Q417 qQii8 solar
Slide 14: Non-GAAP Operating Income
NON-GAAP OPERATING INCOME USD millions
Slide 15: GAAP Net Income
GAAP NET INCOME USD millions * * Q4 ’17 and Q1 ‘18 include one time transition tax accrual of $18.7M and $0.8, respectively
Slide 16: Non-GAAP Net Income
NON-GAAP NET INCOME USD millions
Slide 17: Balance Sheet & Cash Flow
BALANCE SHEET & CASH FLOW USD in millions CQ1'18 Q1 18 CQ4'17 Q4 17 CQ1'17 Q1 17 Cash and investments 400.8 345.1 247.6 Inventory 98.4 83.0 60.9 Capital Expenditures 11.3 8.2 8.8 1.9 2.1 Total Debt - - - Cash Flow From Operations 64.0 45.8 25.7
Slide 18: Second Quarter Guidance
SECOND QUARTER GUIDANCE Revenues expected to be within the range of $220 million to $230 million Gross margin expected to remain flat within the range of 36% to 38%
Slide 19: Appendix
solarzehre solarzs{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 March 31, 2018 December 31, 2017 March 31, 2017 Gross profit (GAAP) 79,597 70,970 38,676 Stock-based compensation 924 703 493 Gross profit (Non-GAAP) 80,521 71,673 39,169 Reconciliation of GAAP to N
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 March 31, 2018 December 31, 2017 March 31, 2017 Operating expenses (GAAP) 38,769 36,399 26,672 Stock-based compensation R&D 2,382 1,795 1,205 Stock-based compensation S&M 2,204 1,714 1,030 Sto
Slide 22: Reconciliation of GAAP to Non-GAAP
RECONCILIATION OF GAAP TO NON-GAAP Reconciliation of GAAP to Non-GAAP Financial income, net Three months ended March 31, 2018 December 31, 2017 March 31, 2017 Financial income, net (GAAP) 584 1,487 1,410 Non cash interest 512 ---- ---- Financial income, net (Non-GAAP) 1,096 1,487 1,410 Reconciliatio
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 March 31, 2018 December 31, 2017 March 31, 2017 Net income (GAAP) 35,686 19,502 14,175 Stock-based compensation 6,849 5,382 3,612 Non cash interest 512 ---- ---- FA disposal 64 ---- ---- Deferred tax
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 March 31, 2018 December 31, 2017 March 31, 2017 Net basic earnings per share (GAAP) 0.81 0.45 0.34 Stock-based compensation 0.15 0.12 0.09 Non cash interest 0.01 ---- ---- FA disposal ---- ---- ---
Slide 25: NASDAQ | SEDG
solarzehre solarzs{e-" NASDAQ | SEDG