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
of incorporation)
 
(Commission
File Number)
 
(I.R.S. Employer
Identification No.)
 
     
1 Hamada Street, 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 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 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
September 30,
   
Nine Months Ended
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)

   
September 30,
2023
   
December 31,
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, 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’ equity
 
$
4,651,154
   
$
4,265,949
 



SOLAREDGE TECHNOLOGIES INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands, except per share data)

   
Nine Months Ended
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
 




v3.23.3
Document and Entity Information
Nov. 01, 2023
Cover [Abstract]  
Document Type 8-K
Amendment Flag false
Document Period End Date Nov. 01, 2023
Entity Registrant Name SOLAREDGE TECHNOLOGIES, INC
Entity Incorporation, State or Country Code DE
Entity File Number 001-36894
Entity Tax Identification Number 20-5338862
Entity Address, Address Line One 1 Hamada Street
Entity Address, City or Town Herziliya Pituach
Entity Address, Country IL
Entity Address, Postal Zip Code 4673335
City Area Code 9
Local Phone Number 957-6620
Written Communications false
Soliciting Material false
Pre-commencement Tender Offer false
Pre-commencement Issuer Tender Offer false
Entity Emerging Growth Company false
Entity Central Index Key 0001419612
Title of 12(b) Security Common stock, par value $0.0001 per share
Trading Symbol SEDG
Security Exchange Name NASDAQ

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