8-K
SOLAREDGE TECHNOLOGIES, INC. (SEDG)
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15\(d\) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of report (Date of earliest event reported): November 1, 2023
SOLAREDGE TECHNOLOGIES, INC
(Exact name of registrant as specified in its charter)
| Delaware | 001-36894 | 20-5338862 |
|---|---|---|
| (State or other jurisdiction<br><br> <br>of incorporation) | (Commission<br><br> <br>File Number) | (I.R.S. Employer<br><br> <br>Identification No.) |
| 1 Hamada Street,<br> Herziliya Pituach, Israel | 4673335 | |
| --- | --- | |
| (Address of Principal executive offices) | (Zip Code) |
Registrant’s Telephone number, including area code: 972 (9) 957-6620
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered |
|---|---|---|
| Common stock, par value $0.0001 per share | SEDG | NASDAQ (Global Select Market) |
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instructions A.2 below):
| ☐ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
|---|---|
| ☐ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
| ☐ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
| ☐ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ◻
Item 2.02. Results of Operations and Financial Condition.
On November 1, 2023, SolarEdge Technologies, Inc. (the “Company”) issued a press release announcing its financial results for the third quarter ended September 30, 2023. A copy of the press release is attached hereto as Exhibit 99.1 and is incorporated herein by reference.
In accordance with General Instruction B.2 of Form 8-K, this information, including the exhibits hereto, shall not be deemed “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934 (the “Exchange Act”) or otherwise subject to the liabilities of that section, nor shall such information, including the exhibits hereto be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.
Item 8.01 Other Events
On November 1, 2023, the Company’s Board of Directors approved a share repurchase program which authorizes the repurchase of up to $300 million of the Company’s common stock. Under the share repurchase program, repurchases can be made using a variety of methods, which may include open market purchases, block trades, privately negotiated transactions, accelerated share repurchase programs and/or a non-discretionary trading plan or other means, including through 10b5-1 trading plans, all in compliance with the rules of the SEC and other applicable legal requirements. The timing, manner, price and amount of any common share repurchases under the share repurchase program are determined by the Company in its discretion and depend on a variety of factors, including legal requirements, price and economic and market conditions. The program does not obligate SolarEdge to acquire any amount of common stock, it may be suspended, extended, modified, discontinued or terminated at any time at the Company’s discretion without prior notice, and will expire on December 31, 2024.
Item 9.01. Financial Statements and Exhibits
| Exhibit No. | Description |
|---|---|
| Exhibit 99.1 | Press release,<br> dated November 1, 2023 |
| Exhibit 104 | Cover Page Interactive Data File – the cover page XBRL tags are embedded within the Inline XBRL document. |
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| SOLAREDGE TECHNOLOGIES, INC. | ||
|---|---|---|
| Date: November 1, 2023 | By: | /s/ Ronen Faier |
| Name: | Ronen Faier | |
| Title: | Chief Financial Officer |
Exhibit 99.1
SolarEdge Announces Third Quarter 2023 Financial Results
MILPITAS, Calif. — November 1, 2023. SolarEdge Technologies, Inc. (Nasdaq: SEDG), a global leader in smart energy technology, today announced its financial results for the third quarter ended September 30, 2023.
Third Quarter 2023 Highlights
| • | Revenues of $725.3 million |
|---|---|
| • | Revenues from solar segment of $676.4 million |
| --- | --- |
| • | GAAP gross margin of 19.7% |
| --- | --- |
| • | Non-GAAP gross margin* of 20.8% |
| --- | --- |
| • | Gross margin from solar segment of 24.0% |
| --- | --- |
| • | GAAP operating loss of $16.7 million |
| --- | --- |
| • | Non-GAAP operating income* of $23.1 million |
| --- | --- |
| • | GAAP net loss of $61.2 million |
| --- | --- |
| • | Non-GAAP net loss* of $31.0 million |
| --- | --- |
| • | GAAP net diluted loss per share (“EPS”) of $1.08 |
| --- | --- |
| • | Non-GAAP net diluted loss per share* of $0.55 |
| --- | --- |
| • | 3.8 Gigawatts (AC) of inverters shipped |
| --- | --- |
| • | 121 MWh of batteries shipped |
| --- | --- |
“The results for the third quarter fell short of our prior expectations and are reflecting a slow market environment, which has resulted in high inventory of our products in the distribution channels, in particular in Europe”, said Zvi Lando, Chief Executive Officer of SolarEdge. “While channel inventory clearing is expected to continue in coming quarters, we are optimistic about the future of the solar PV industry and are confident that our leading technology, global presence and broad product offering will enable us to continue to be a leader in this market.”
Third Quarter 2023 Summary
The Company reported revenues of $725.3 million, down 27% from $991.3 million in the prior quarter and down 13% from $836.7 million in the same quarter last year.
Revenues from the solar segment were $676.4 million, down 29% from $947.4 million in the prior quarter and down 14% from $788.6 million in the same quarter last year.
GAAP gross margin was 19.7%, down from 32.0% in the prior quarter and down from 26.5% in the same quarter last year.
Non-GAAP gross margin* was 20.8%, down from 32.7% in the prior quarter and down from 27.3% in the same quarter last year.
Gross margin from the solar segment was 24.0%, down from 34.7% in the prior quarter and down from 28.3% in the same quarter last year.
GAAP operating expenses were $159.5 million, down 4% from $166.9 million in the prior quarter and up 16% from $137.6 million in the same quarter last year.
Non-GAAP operating expenses* were $128.0 million, down 4% from $133.3 million in the prior quarter and up 18% from $108.3 million in the same quarter last year.
GAAP operating loss was $16.7 million, down from a GAAP operating income of $150.4 million in the prior quarter and down from GAAP operating income of $84.4 million in the same quarter last year.
Non-GAAP operating income* was $23.1 million, down 88% from $191.0 million in the prior quarter and down 81% from $120.2 million in the same quarter last year.
GAAP net loss was $61.2 million, down from a GAAP net income of $119.5 million in the prior quarter and down from a GAAP net income of $24.7 million in the same quarter last year.
Non-GAAP net loss* was $31.0 million, down from a Non-GAAP net income of $157.4 million in the prior quarter and down from a Non-GAAP net income of $54.1 million in the same quarter last year.
GAAP net diluted loss per share was $1.08, down from a GAAP net diluted EPS of $2.03 in the prior quarter and down from a GAAP net diluted EPS of $0.43 in the same quarter last year.
Non-GAAP net diluted loss per share* was $0.55, down from a Non-GAAP net diluted EPS of $2.62 in the prior quarter and down from a Non-GAAP net diluted EPS of $0.91 in the same quarter last year.
Cash generated from operating activities was $40.6 million, compared with $88.7 million used in operating activities in the prior quarter and $5.6 million generated from operating activities in the same quarter last year.
As of September 30, 2023, cash, cash equivalents, bank deposits, restricted bank deposits and marketable securities totaled $831.4 million, net of debt, compared to $853.5 million on June 30, 2023.
________________________________________________________________________
* Non-GAAP financial measure. See “Non-GAAP Financial Measures” for additional information on Non-GAAP financial measures and a reconciliation to the most comparable GAAP measures.
Outlook for the Fourth Quarter 2023
The Company also provides guidance for the fourth quarter ending December 31, 2023 as follows:
| • | Revenues to be within the range of $300 million to $350 million |
|---|---|
| • | Non-GAAP gross margin** expected to be within the range of 5% to 8%, including<br> approximately 130 basis points of net IRA manufacturing tax credit |
| --- | --- |
| • | Non-GAAP operating expenses** to be within the range of $126 million to $130 million |
| --- | --- |
| • | Revenues from the solar segment to be within the range of $275 million to $320 million |
| --- | --- |
| • | Gross margin from the solar segment expected to be within the range of 7% to 10% including approximately 130 basis points of net IRA manufacturing tax credit |
| --- | --- |
**Non-GAAP gross margin and Non-GAAP operating expenses are Non-GAAP financial measures, and these forward-looking measures have not been reconciled to the most comparable GAAP outlook because it is not possible to do so without unreasonable efforts due to the uncertainty and potential variability of reconciling items, which are dependent on future events and often outside of management’s control and which could be significant. Because such items cannot be reasonably predicted with the level of precision required, we are unable to provide outlook for the comparable GAAP measures. Forward-looking estimates of Non-GAAP gross margin and Non-GAAP operating expenses are made in a manner consistent with the relevant definitions and assumptions noted herein and in our filings with the SEC.
Conference Call
The Company will host a conference call to discuss its results for the third quarter ended September 30, 2023 at 4:30 p.m. ET on Wednesday, November 1, 2023. The call will be available, live, to interested parties by dialing 800-343-4136. For international callers, please dial +1 203-518-9843. The Conference ID is SEDG. To avoid a delay in connecting to the call, please dial in 10 minutes prior to the start time. A live webcast will also be available in the Investors Relations section of the Company’s website at: http://investors.solaredge.com
A replay of the webcast will be available in the Investor Relations section of the Company’s web site approximately two hours after the conclusion of the call and will remain available for approximately 30 calendar days.
About SolarEdge
SolarEdge is a global leader in smart energy technology. By leveraging world-class engineering capabilities and with a relentless focus on innovation, SolarEdge creates smart energy solutions that power our lives and drive future progress. SolarEdge developed an intelligent inverter solution that changed the way power is harvested and managed in photovoltaic (PV) systems. The SolarEdge DC optimized inverter seeks to maximize power generation while lowering the cost of energy produced by the PV system. Continuing to advance smart energy, SolarEdge addresses a broad range of energy market segments through its PV, storage, EV charging, batteries, electric vehicle powertrains, and grid services solutions. SolarEdge is online at www.solaredge.com
Use of Non-GAAP Financial Measures
The Company has presented certain non-GAAP financial measures in this release, such as non-GAAP net income, non-GAAP net diluted EPS, non-GAAP gross margin, non-GAAP operating expenses, non-GAAP operating income and non-GAAP gross margin from sale of solar products. Generally, a non-GAAP financial measure is a numerical measure of a company's performance, financial position, or cash flows that either exclude or include amounts that are not normally excluded or included in the most directly comparable measure calculated and presented in accordance with generally accepted accounting principles in the United States, or GAAP. Reconciliation of each non-GAAP financial measure to the most directly comparable GAAP financial measure can be found in the accompanying tables to this release. These non-GAAP financial measures do not reflect a comprehensive system of accounting, differ from GAAP measures with the same captions and may differ from non-GAAP financial measures with the same or similar captions that are used by other companies. As such, these non-GAAP measures should be considered as a supplement to, and not as a substitute for, or superior to, financial measures calculated in accordance with GAAP.
The Non-GAAP measures are presented in this press release because we believe that they provide investors with a means of evaluating and understanding how the Company’s management evaluates the company’s operating performance. The non-GAAP financial measures in this earnings release may differ from similarly titled measures used by other companies.
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995
This release contains forward looking statements which are made pursuant to the safe harbor provisions 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 of operations; future demands for solar energy solutions; business strategies; technology developments; financing and investment plans; dividend policy; competitive position; industry and regulatory environment; general economic conditions; potential growth opportunities; cancellations and pushouts of existing backlog; installation rates; and the effects of competition. These forward-looking statements are often characterized by the use of words such as “anticipate,” “believe,” “could,” “seek,” “estimate,” “expect,” “intend,” “may,” “plan,” “potential,” “predict,” “project,” “should,” “will,” “would” or similar expressions and the negative or plural of those terms and other like terminology.
Forward-looking statements are only predictions based on our current expectations and our projections about future events. These forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause our actual results, levels of activity, performance or achievements to be materially different from those expressed or implied by the forward-looking statements. Given these factors, you should not place undue reliance on these forward-looking statements. These factors include, but are not limited to, future demand for renewable energy including solar energy solutions; changes, elimination or expiration of government subsidies and economic incentives for on-grid solar energy applications; changes in the U.S. trade environment; federal, state, and local regulations governing the electric utility industry with respect to solar energy; changes in tax laws, tax treaties, and regulations or the interpretation of them, including the Inflation Reduction Act; the retail price of electricity derived from the utility grid or alternative energy sources; interest rates and supply of capital in the global financial markets in general and in the solar market specifically; competition, including introductions of power optimizer, inverter and solar photovoltaic system monitoring products by our competitors; developments in alternative technologies or improvements in distributed solar energy generation; historic cyclicality of the solar industry; product quality or performance problems in our products; our ability to forecast demand for our products accurately and to match production to such demand as well as our customers’ ability to forecast demand based on inventory levels; our dependence upon a small number of outside contract manufacturers and limited or single source suppliers; capacity constraints, delivery schedules, manufacturing yields, and costs of our contract manufacturers and availability of components; delays, disruptions, and quality control problems in manufacturing; existing and future responses to and effects of pandemics, epidemics, or other health crises; disruption in our global supply chain and rising prices of oil and raw materials as a result of various conflicts, including the evolving state of war in Israel; our customers’ financial stability and our ability to retain customers; our ability to retain key personnel and attract additional qualified personnel; our ability to manage effectively the growth of our organization and expansion into new markets and integration of acquired businesses; unrest and terrorism; macroeconomic conditions in our domestic and international markets, as well as inflation concerns, financial institutions instability, rising interest rates, recessionary concerns, the prospect of a shutdown of the U.S. federal government and the Israeli government's plans to significantly reduce the Israeli Supreme Court's judicial oversight; consolidation in the solar industry among our customers and distributors; cyber incidents; and other matters discussed in the section entitled “Risk Factors” of our Annual Report on Form 10-K for the year ended December 31, 2022, filed on February 22, 2023 and our quarterly reports filed on Form 10-Q, Current Reports on Form 8-K and other reports filed with the SEC. All information set forth in this release is as of November 1, 2023. The Company undertakes no duty or obligation to update any forward-looking statements contained in this release, whether as a result of new information, future events or changes in its expectations or otherwise, except as may be required by applicable law, regulation or other competent legal authority.
Investor Contacts
SolarEdge Technologies, Inc.
JB Lowe, Head of Investor Relations
investors@solaredge.com
Sapphire Investor Relations, LLC
Erica Mannion or Michael Funari
investors@solaredge.com
SOLAREDGE TECHNOLOGIES INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (LOSS)
(in thousands, except per share data)
| Three Months Ended<br><br> September 30, | Nine Months Ended<br><br> September 30, | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2023 | 2022 | 2023 | 2022 | |||||||||
| Unaudited | ||||||||||||
| Revenues | $ | 725,305 | $ | 836,723 | $ | 2,660,484 | $ | 2,219,577 | ||||
| Cost of revenues | 582,488 | 614,722 | 1,900,236 | 1,635,976 | ||||||||
| Gross profit | 142,817 | 222,001 | 760,248 | 583,601 | ||||||||
| Operating expenses: | ||||||||||||
| Research and development | 80,082 | 69,659 | 246,481 | 210,855 | ||||||||
| Sales and marketing | 40,351 | 42,726 | 125,539 | 117,017 | ||||||||
| General and administrative | 39,110 | 27,933 | 111,876 | 82,483 | ||||||||
| Other operating expense (income), net | — | (2,724 | ) | (1,434 | ) | 1,963 | ||||||
| Total operating expenses | 159,543 | 137,594 | 482,462 | 412,318 | ||||||||
| Operating income (loss) | (16,726 | ) | 84,407 | 277,786 | 171,283 | |||||||
| Financial income (expense), net | (7,901 | ) | (33,146 | ) | 19,157 | (52,062 | ) | |||||
| Other income (loss), net | (484 | ) | 7,654 | (609 | ) | 6,810 | ||||||
| Income (loss) before income taxes | (25,111 | ) | 58,915 | 296,334 | 126,031 | |||||||
| Income taxes | 36,065 | 34,172 | 99,622 | 53,081 | ||||||||
| Net income (loss) | $ | (61,176 | ) | $ | 24,743 | $ | 196,712 | $ | 72,950 |
SOLAREDGE TECHNOLOGIES INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands, except per share data)
| December 31,<br><br> 2022 | |||||
|---|---|---|---|---|---|
| ASSETS | |||||
| CURRENT ASSETS: | |||||
| Cash and cash equivalents | 551,122 | $ | 783,112 | ||
| Marketable securities | 477,275 | 241,117 | |||
| Trade receivables, net of allowances of 14,930 and 3,202, respectively | 939,545 | 905,146 | |||
| Inventories, net | 1,177,805 | 729,201 | |||
| Prepaid expenses and other current assets | 217,720 | 241,082 | |||
| Total current assets | 3,363,467 | 2,899,658 | |||
| LONG-TERM ASSETS: | |||||
| Marketable securities | 436,139 | 645,491 | |||
| Deferred tax assets, net | 60,147 | 44,153 | |||
| Property, plant and equipment, net | 604,819 | 543,969 | |||
| Operating lease right-of-use assets, net | 67,331 | 62,754 | |||
| Intangible assets, net | 41,947 | 19,929 | |||
| Goodwill | 41,201 | 31,189 | |||
| Other long-term assets | 36,103 | 18,806 | |||
| Total long-term assets | 1,287,687 | 1,366,291 | |||
| Total assets | 4,651,154 | 4,265,949 | |||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||
| CURRENT LIABILITIES: | |||||
| Trade payables, net | 394,569 | 459,831 | |||
| Employees and payroll accruals | 77,740 | 85,158 | |||
| Warranty obligations | 175,426 | 103,975 | |||
| Deferred revenues and customers advances | 22,064 | 26,641 | |||
| Accrued expenses and other current liabilities | 203,448 | 214,112 | |||
| Total current liabilities | 873,247 | 889,717 | |||
| LONG-TERM LIABILITIES: | |||||
| Convertible senior notes, net | 626,647 | 624,451 | |||
| Warranty obligations | 345,091 | 281,082 | |||
| Deferred revenues | 212,025 | 186,936 | |||
| Finance lease liabilities | 40,323 | 45,385 | |||
| Operating lease liabilities | 46,580 | 46,256 | |||
| Other long-term liabilities | 16,835 | 15,756 | |||
| Total long-term liabilities | 1,287,501 | 1,199,866 | |||
| COMMITMENTS AND CONTINGENT LIABILITIES | |||||
| STOCKHOLDERS’ EQUITY: | |||||
| Common stock of 0.0001 par value - Authorized: 125,000,000 shares as of September 30, 2023 and December 31,<br> 2022; issued and outstanding: 56,810,559 and 56,133,404 shares as of September 30, 2023 and December 31, 2022, respectively | 6 | 6 | |||
| Additional paid-in capital | 1,633,800 | 1,505,632 | |||
| Accumulated other comprehensive loss | (83,949 | ) | (73,109 | ) | |
| Retained earnings | 940,549 | 743,837 | |||
| Total stockholders’ equity | 2,490,406 | 2,176,366 | |||
| Total liabilities and stockholders’<br> equity | 4,651,154 | $ | 4,265,949 |
All values are in US Dollars.
SOLAREDGE TECHNOLOGIES INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands, except per share data)
| Nine Months Ended<br><br> <br>September 30, | ||||||
|---|---|---|---|---|---|---|
| 2023 | 2022 | |||||
| Cash flows from operating activities: | ||||||
| Net income | $ | 196,712 | $ | 72,950 | ||
| Adjustments to reconcile net income to net cash provided by (used in) operating activities: | ||||||
| Depreciation and amortization | 42,019 | 37,312 | ||||
| Loss (gain) from exchange rate fluctuations | (8,170 | ) | 58,100 | |||
| Stock-based compensation expenses | 115,015 | 106,932 | ||||
| Impairment of goodwill and intangible assets | — | 4,008 | ||||
| Deferred income taxes, net | (18,199 | ) | (3,822 | ) | ||
| Other items | 6,915 | 8,594 | ||||
| Changes in assets and liabilities: | ||||||
| Inventories, net | (437,801 | ) | (188,579 | ) | ||
| Prepaid expenses and other assets | 19,822 | (55,478 | ) | |||
| Trade receivables, net | (40,011 | ) | (377,089 | ) | ||
| Trade payables, net | (58,701 | ) | 53,683 | |||
| Employees and payroll accruals | 12,099 | 12,119 | ||||
| Warranty obligations | 135,568 | 82,025 | ||||
| Deferred revenues and customers advances | 18,580 | 41,440 | ||||
| Accrued expenses and other liabilities, net | (24,051 | ) | 67,789 | |||
| Net cash used in operating activities | (40,203 | ) | (80,016 | ) | ||
| Cash flows from investing activities: | ||||||
| Investment in available-for-sale marketable securities | (214,516 | ) | (461,491 | ) | ||
| Proceeds from sales and maturities of available-for-sale marketable securities | 194,617 | 178,415 | ||||
| Purchase of property, plant and equipment | (130,024 | ) | (125,085 | ) | ||
| Business combinations, net of cash acquired | (16,653 | ) | — | |||
| Purchase of intangible assets | (10,600 | ) | — | |||
| Disbursements for loans receivables | (13,000 | ) | — | |||
| Investment in privately-held companies | (8,000 | ) | — | |||
| Proceeds from governmental grant | 6,796 | — | ||||
| Proceeds from sale of a privately-held company | — | 24,175 | ||||
| Other investing activities | 3,193 | 3,472 | ||||
| Net cash used in investing activities | (188,187 | ) | (380,514 | ) | ||
| Cash flows from financing activities: | ||||||
| Tax withholding in connection with stock-based awards, net | (9,267 | ) | (4,686 | ) | ||
| Payments of finance lease liability | (2,123 | ) | (2,109 | ) | ||
| Proceeds from secondary public offering, net of issuance costs | — | 650,526 | ||||
| Other financing activities | 85 | 3,404 | ||||
| Net cash provided by (used in) financing activities | (11,305 | ) | 647,135 | |||
| Increase (decrease) in cash and cash equivalents | (239,695 | ) | 186,605 | |||
| Cash and cash equivalents at the beginning of the period | 783,112 | 530,089 | ||||
| Effect of exchange rate differences on cash and cash equivalents | 7,705 | (38,365 | ) | |||
| Cash and cash equivalents at the end of the period | 551,122 | 678,329 |
SOLAREDGE TECHNOLOGIES INC.
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (Unaudited)
(in thousands, except per share data and percentages)
| Reconciliation of GAAP to Non-GAAP | |||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Q3-22 | Q4-22 | Q1-23 | Q2-23 | Q3-23 | |||||||||||
| Gross profit (GAAP) | $ | 222,001 | $ | 261,047 | $ | 300,126 | $ | 317,305 | $ | 142,817 | |||||
| Revenues from finance component | (159 | ) | (174 | ) | (187 | ) | (202 | ) | (215 | ) | |||||
| Stock-based compensation | 4,661 | 6,810 | 5,927 | 5,923 | 5,882 | ||||||||||
| Amortization of stock-based compensation capitalized in inventories | — | — | — | 316 | 441 | ||||||||||
| Amortization and depreciation of acquired asset | 2,064 | 961 | 1,515 | 872 | 2,096 | ||||||||||
| Gross profit (Non-GAAP) | $ | 228,567 | $ | 268,644 | $ | 307,381 | $ | 324,214 | $ | 151,021 | |||||
| Gross margin (GAAP) | 26.5 | % | 29.3 | % | 31.8 | % | 32.0 | % | 19.7 | % | |||||
| Revenues from finance component | 0.0 | % | 0.0 | % | 0.0 | % | 0.0 | % | 0.0 | % | |||||
| Stock-based compensation | 0.6 | % | 0.8 | % | 0.6 | % | 0.6 | % | 0.8 | % | |||||
| Amortization of stock-based compensation capitalized in inventories | — | % | — | % | — | % | 0.0 | % | 0.0 | % | |||||
| Amortization and depreciation of acquired assets | 0.2 | % | 0.1 | % | 0.2 | % | 0.1 | % | 0.3 | % | |||||
| Gross margin (Non-GAAP) | 27.3 | % | 30.2 | % | 32.6 | % | 32.7 | % | 20.8 | % | |||||
| Operating expenses (GAAP) | $ | 137,594 | $ | 266,210 | $ | 155,972 | $ | 166,947 | $ | 159,543 | |||||
| Stock-based compensation - R&D | (14,553 | ) | (16,854 | ) | (17,209 | ) | (17,272 | ) | (16,481 | ) | |||||
| Stock-based compensation - S&M | (9,341 | ) | (7,928 | ) | (8,079 | ) | (7,822 | ) | (7,739 | ) | |||||
| Stock-based compensation - G&A | (7,196 | ) | (7,015 | ) | (8,020 | ) | (7,948 | ) | (6,713 | ) | |||||
| Amortization and depreciation of acquired assets - R&D | (302 | ) | (301 | ) | (313 | ) | (289 | ) | (329 | ) | |||||
| Amortization and depreciation of acquired assets - S&M | (187 | ) | (173 | ) | (181 | ) | (235 | ) | (321 | ) | |||||
| Amortization and depreciation of acquired assets - G&A | (6 | ) | (4 | ) | (26 | ) | 17 | (4 | ) | ||||||
| Assets impairment | 19 | (114,473 | ) | — | — | — | |||||||||
| Gain (loss) from assets sales and disposal | 2,303 | (102 | ) | 1,434 | — | — | |||||||||
| Acquisition costs | — | (350 | ) | — | (135 | ) | — | ||||||||
| Operating expenses (Non-GAAP) | $ | 108,331 | $ | 119,010 | $ | 123,578 | $ | 133,263 | $ | 127,956 |
SOLAREDGE TECHNOLOGIES INC.
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (Unaudited)
(in thousands, except per share data and percentages)
| Reconciliation of GAAP to Non-GAAP | |||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Q3-22 | Q4-22 | Q1-23 | Q2-23 | Q3-23 | |||||||||||
| Operating income (loss) (GAAP) | $ | 84,407 | $ | (5,163 | ) | $ | 144,154 | $ | 150,358 | $ | (16,726 | ) | |||
| Revenues from finance component | (159 | ) | (174 | ) | (187 | ) | (202 | ) | (215 | ) | |||||
| Stock-based compensation | 35,751 | 38,607 | 39,235 | 38,965 | 36,815 | ||||||||||
| Amortization of stock-based compensation capitalized in inventories | — | — | — | 316 | 441 | ||||||||||
| Amortization and depreciation of acquired assets | 2,559 | 1,439 | 2,035 | 1,379 | 2,750 | ||||||||||
| Assets impairment | (19 | ) | 114,473 | — | — | — | |||||||||
| Loss (gain) from assets sales and disposal | (2,303 | ) | 102 | (1,434 | ) | — | — | ||||||||
| Acquisition costs | — | 350 | — | 135 | — | ||||||||||
| Operating income (Non-GAAP) | $ | 120,236 | $ | 149,634 | $ | 183,803 | $ | 190,951 | $ | 23,065 | |||||
| Financial income (expense), net (GAAP) | $ | (33,025 | ) | $ | 56,101 | $ | 23,674 | $ | 3,384 | $ | (7,901 | ) | |||
| Non cash interest expense | 2,505 | 2,685 | 2,892 | 3,105 | 3,284 | ||||||||||
| Unrealized losses (gains) | — | (170 | ) | — | — | — | |||||||||
| Currency fluctuation related to lease standard | (1,116 | ) | 749 | (2,519 | ) | (2,107 | ) | (2,788 | ) | ||||||
| Financial income (expense), net (Non-GAAP) | $ | (31,636 | ) | $ | 59,365 | $ | 24,047 | $ | 4,382 | $ | (7,405 | ) | |||
| Other income (loss) (GAAP) | $ | 7,533 | $ | 186 | $ | (125 | ) | $ | — | $ | (484 | ) | |||
| Loss (gain) from sale of investment in privately-held company | (7,533 | ) | (186 | ) | — | — | 484 | ||||||||
| Other income (loss) (Non-GAAP) | $ | — | $ | — | $ | (125 | ) | $ | — | $ | — | ||||
| Income tax benefit (expense) (GAAP) | $ | (34,172 | ) | $ | (30,295 | ) | $ | (29,325 | ) | $ | (34,232 | ) | $ | (36,065 | ) |
| Income tax adjustment | (291 | ) | (7,186 | ) | (3,901 | ) | (3,735 | ) | (10,561 | ) | |||||
| Income tax benefit (expense) (Non-GAAP) | $ | (34,463 | ) | $ | (37,481 | ) | $ | (33,226 | ) | $ | (37,967 | ) | $ | (46,626 | ) |
SOLAREDGE TECHNOLOGIES INC.
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (Unaudited)
(in thousands, except per share data and percentages)
| Reconciliation of GAAP to Non-GAAP | |||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Q3-22 | Q4-22 | Q1-23 | Q2-23 | Q3-23 | |||||||||||
| Net income (loss) (GAAP) | $ | 24,743 | $ | 20,829 | $ | 138,378 | $ | 119,510 | $ | (61,176 | ) | ||||
| Revenues from finance component | (159 | ) | (174 | ) | (187 | ) | (202 | ) | (215 | ) | |||||
| Stock-based compensation | 35,751 | 38,607 | 39,235 | 38,965 | 36,815 | ||||||||||
| Amortization of stock-based compensation capitalized in inventories | — | — | — | 316 | 441 | ||||||||||
| Amortization and depreciation of acquired assets | 2,559 | 1,439 | 2,035 | 1,379 | 2,750 | ||||||||||
| Assets impairment | (19 | ) | 114,473 | — | — | — | |||||||||
| Loss (gain) from assets sales and disposal | (2,303 | ) | 102 | (1,434 | ) | — | — | ||||||||
| Acquisition costs | — | 350 | — | 135 | — | ||||||||||
| Non cash interest expense | 2,505 | 2,685 | 2,892 | 3,105 | 3,284 | ||||||||||
| Unrealized losses (gains) | — | (170 | ) | — | — | — | |||||||||
| Currency fluctuation related to lease standard | (1,116 | ) | 749 | (2,519 | ) | (2,107 | ) | (2,788 | ) | ||||||
| Loss (gain) from sale of investment in privately-held company | (7,533 | ) | (186 | ) | — | — | 484 | ||||||||
| Income tax adjustment | (291 | ) | (7,186 | ) | (3,901 | ) | (3,735 | ) | (10,561 | ) | |||||
| Net income (loss) (Non-GAAP) | $ | 54,137 | $ | 171,518 | $ | 174,499 | $ | 157,366 | $ | (30,966 | ) | ||||
| Net basic earnings (loss) per share (GAAP) | $ | 0.44 | $ | 0.37 | $ | 2.46 | $ | 2.12 | $ | (1.08 | ) | ||||
| Revenues from finance component | 0.00 | 0.00 | 0.00 | (0.01 | ) | 0.00 | |||||||||
| Stock-based compensation | 0.64 | 0.69 | 0.70 | 0.70 | 0.65 | ||||||||||
| Amortization of stock-based compensation capitalized in inventories | — | — | — | 0.00 | 0.00 | ||||||||||
| Amortization and depreciation of acquired assets | 0.05 | 0.02 | 0.03 | 0.03 | 0.05 | ||||||||||
| Assets impairment | 0.00 | 2.05 | — | — | — | ||||||||||
| Loss (gain) from assets sales and disposal | (0.04 | ) | 0.00 | (0.02 | ) | — | — | ||||||||
| Acquisition costs | — | 0.01 | — | 0.00 | — | ||||||||||
| Non cash interest expense | 0.04 | 0.05 | 0.05 | 0.05 | 0.06 | ||||||||||
| Unrealized losses (gains) | — | (0.01 | ) | — | — | — | |||||||||
| Currency fluctuation related to lease standard | (0.02 | ) | 0.02 | (0.05 | ) | (0.03 | ) | (0.05 | ) | ||||||
| Loss (gain) from sale of investment in privately-held company | (0.13 | ) | (0.01 | ) | — | — | 0.01 | ||||||||
| Income tax adjustment | (0.01 | ) | (0.13 | ) | (0.07 | ) | (0.07 | ) | (0.19 | ) | |||||
| Net basic earnings (loss) per share (Non-GAAP) | $ | 0.97 | $ | 3.06 | $ | 3.10 | $ | 2.79 | $ | (0.55 | ) |
SOLAREDGE TECHNOLOGIES INC.
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (Unaudited)
(in thousands, except per share data and percentages)
| Reconciliation of GAAP to Non-GAAP | |||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Q3-22 | Q4-22 | Q1-23 | Q2-23 | Q3-23 | |||||||||||
| Net diluted earnings (loss) per share (GAAP) | $ | 0.43 | $ | 0.36 | $ | 2.35 | $ | 2.03 | $ | (1.08 | ) | ||||
| Revenues from finance component | 0.00 | 0.00 | (0.01 | ) | (0.01 | ) | 0.00 | ||||||||
| Stock-based compensation | 0.59 | 0.64 | 0.62 | 0.62 | 0.65 | ||||||||||
| Amortization of stock-based compensation capitalized in inventories | — | — | — | 0.00 | 0.00 | ||||||||||
| Amortization and depreciation of acquired assets | 0.05 | 0.02 | 0.03 | 0.03 | 0.05 | ||||||||||
| Assets impairment | 0.00 | 1.91 | — | — | — | ||||||||||
| Loss (gain) from assets sales and disposal | (0.04 | ) | 0.00 | (0.02 | ) | — | — | ||||||||
| Acquisition costs | — | 0.01 | — | 0.00 | — | ||||||||||
| Non cash interest expense | 0.03 | 0.03 | 0.04 | 0.04 | 0.06 | ||||||||||
| Unrealized losses (gains) | — | 0.00 | — | — | — | ||||||||||
| Currency fluctuation related to lease standard | (0.02 | ) | 0.01 | (0.04 | ) | (0.03 | ) | (0.05 | ) | ||||||
| Loss (gain) from sale of investment in privately-held company | (0.13 | ) | 0.00 | — | — | 0.01 | |||||||||
| Income tax adjustment | 0.00 | (0.12 | ) | (0.07 | ) | (0.06 | ) | (0.19 | ) | ||||||
| Net diluted earnings (loss) per share (Non-GAAP) | $ | 0.91 | $ | 2.86 | $ | 2.90 | $ | 2.62 | $ | (0.55 | ) | ||||
| Number of shares used in computing net diluted earnings (loss) per share (GAAP) | 58,747,538 | 58,734,719 | 59,193,831 | 59,183,666 | 56,671,504 | ||||||||||
| Stock-based compensation | 784,228 | 1,237,266 | 939,571 | 986,527 | — | ||||||||||
| Number of shares used in computing net diluted earnings (loss) per share (Non-GAAP) | 59,531,766 | 59,971,985 | 60,133,402 | 60,170,193 | 56,671,504 |