SolarEdge Technologies, Inc. (Nasdaq: SEDG), a global leader in
smart energy technology, today announced its financial results for
the third quarter ended September 30, 2024.
Third Quarter 2024 Highlights
- Revenues of $260.9 million
- Revenues from solar segment of $247.5 million
- GAAP gross margin of negative 269.2%1
- Non-GAAP gross margin2 of negative 265.4%1
- Gross margin from solar segment of negative 245.8%1
- GAAP operating loss of negative $1.09 billion1
- Non-GAAP operating loss2 of $808.1 million1
- GAAP net loss of negative $1.21 billion1
- Non-GAAP net loss2 of negative $874.3 million1
- GAAP net loss per share of negative $21.11
- Non-GAAP net loss2 per share of $15.31
- Impairment and write downs of $1.03 billion
- 850 Megawatts (AC) of inverters shipped
- 189 MWh of batteries for PV applications shipped
“As SolarEdge weathers this difficult period in the Company’s
history, we are diligently pursuing three main priorities:
financial stability, recapturing market share and refocusing on our
core solar and storage opportunities,” said Ronen Faier, Interim
Chief Executive Officer of SolarEdge. “We are grateful for our
passionate and dedicated workforce and proud of our leadership in
technological innovation, all of which I am confident will put the
Company back on a profitable growth trajectory.”
Third Quarter 2024 Summary
The Company reported revenues of $260.9 million, down 2% from
$265.4 million in the prior quarter and down 64% from $725.3
million in the same quarter last year.
Revenues from the solar segment were $247.5 million, up 3% from
$241.2 million in the prior quarter and down 63% from $676.9
million in the same quarter last year.
GAAP gross margin was negative 269.2%, compared to negative 4.1%
in the prior quarter and compared to 19.7% in the same quarter last
year.
Non-GAAP gross margin2 was negative 265.4%, compared to non-GAAP
gross margin of 0.2% in the prior quarter and compared to 20.8% in
the same quarter last year.
Gross margin from the solar segment was negative 245.8%,
compared to 1.3% in the prior quarter and compared to 24.0% in the
same quarter last year.
GAAP operating expenses were $382.9 million, compared to $149.2
million in the prior quarter and $159.5 million in the same quarter
last year.
Non-GAAP operating expenses2 were $116.3 million, up 1% from
$114.8 million in the prior quarter and down 9% from $128.0 million
in the same quarter last year.
GAAP operating loss was $1.09 billion, compared to a GAAP
operating loss of $160.2 million in the prior quarter and a GAAP
operating loss of $16.7 million in the same quarter last year.
Non-GAAP operating loss2 was $808.1 million, compared to a
Non-GAAP operating loss of $114.3 million in the prior quarter and
Non-GAAP operating income of $23.1 million in the same quarter last
year.
GAAP net loss was $1.21 billion, compared to a GAAP net loss of
$130.8 million in the prior quarter and compared to a GAAP net loss
of $61.2 million in the same quarter last year.
Non-GAAP net loss2 was $874.3 million, compared to a Non-GAAP
net loss of $101.2 million in the prior quarter and compared to a
Non-GAAP net loss of $31.0 million in the same quarter last
year.
GAAP net loss per share was $21.13, compared to a GAAP net loss
per share of $2.31 in the prior quarter and compared to GAAP net
loss per share of $1.08 in the same quarter last year.
Non-GAAP net loss per share2 was $15.33, compared to a Non-GAAP
net loss per share of $1.79 in the prior quarter and compared to a
Non-GAAP net loss of $0.55 in the same quarter last year.
Cash used in operating activities was $63.9 million, compared
with $44.8 million used in operating activities in the prior
quarter and $40.6 million generated from operating activities in
the same quarter last year.
As of September 30, 2024, cash, cash equivalents, bank deposits,
restricted bank deposits and marketable securities totaled $53.3
million, net of debt, compared to $165.3 million as of June 30,
2024.
Impairment
During the third quarter, SolarEdge undertook an asset valuation
analysis which resulted in a write down and impairment of various
assets. In total, the write down and impairment amount was $1.03
billion.
______________________________________________________________________
1
Includes impairments and write
offs
2
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 2024
The Company also provides guidance for the fourth quarter ending
December 31, 2024 as follows:
- Revenues to be within the range of $180 million to $200
million;
- Non-GAAP gross margin* expected to be within the range of
negative 4% to 0%, including approximately 1,000 basis points of
net IRA manufacturing tax credit;
- Non-GAAP operating expenses* to be within the range of $103
million to $108 million;
- Revenues from the solar segment to be within the range of $170
million to $190 million;
- Gross margin from the solar segment expected to be within the
range of 0% to 3% including approximately 1,050 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, 2024 at 4:30 p.m. ET on
Wednesday, November 6, 2024. 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, and grid services solutions. SolarEdge is
online at www.solaredge.com
Use of Non-GAAP Financial Measures
To provide investors and others with additional information
regarding SolarEdge’s results, SolarEdge has disclosed in this
earnings release the following non-GAAP financial measures:
non-GAAP operating income (loss), non-GAAP operating expenses,
non-GAAP gross margin, non-GAAP net income (loss), and non-GAAP net
earnings (loss) per share. SolarEdge has provided a reconciliation
of each non-GAAP financial measure used in this earnings release to
the most directly comparable GAAP financial measure below. These
non-GAAP financial measures differ from GAAP in that they exclude
stock-based compensation, amortization and impairment of acquired
intangible assets, restructuring and impairment charges,
acquisition, disposition and other items, certain litigation and
other contingencies, amortization of debt issuance cost, non-cash
interest expense and non-cash revenue recognized from significant
financing component, certain foreign currency exchange rates, gains
and losses on investments, income and losses from equity method
investments and discrete items that impacted our GAAP tax rate. Our
non-GAAP financial measures also reflect the application of our
non-GAAP tax rate.
SolarEdge’s management uses these non-GAAP financial measures to
understand and compare operating results across accounting periods,
for internal budgeting and forecasting purposes, for short- and
long-term operating plans, to calculate bonus payments and to
evaluate SolarEdge’s financial performance, the performance of its
individual functional groups and the ability of operations to
generate cash. Management believes these non-GAAP financial
measures reflect SolarEdge’s ongoing business in a manner that
allows for meaningful period-to-period comparisons and analysis of
trends in SolarEdge’s business, as they exclude charges and gains
that are not reflective of ongoing operating results. Management
also believes that these non-GAAP financial measures provide useful
information to investors and others in understanding and evaluating
SolarEdge’s operating results and future prospects from the same
perspective as management and in comparing financial results across
accounting periods.
The use of non-GAAP financial measures has certain limitations
because they do not reflect all items of income and expense that
affect SolarEdge’s operations. These non-GAAP financial measures
should be considered in addition to, not as a substitute for or in
isolation from, measures prepared in accordance with GAAP and
should not be considered measures of SolarEdge’s liquidity.
Further, these non-GAAP measures may differ from the non-GAAP
information used by other companies, including peer companies, and
therefore comparability may be limited. Management encourages
investors and others to review SolarEdge’s financial information in
its entirety and not rely on a single financial measure.
Safe Harbor Statement under the Private Securities Litigation
Reform Act of 1995
Statements contained in this press release contains may contain
forward-looking statements that are based on our management’s
expectations, estimates, projections, beliefs and assumptions in
accordance with information currently available to our management.
This press release contains certain forward-looking statements
within the meaning of Section 27A of the Securities Act of 1933, as
amended, and Section 21E of the Securities Exchange Act of 1934, as
amended. 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, new products and services,
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; goodwill
impairment; and the effects of competition. Forward-looking
statements include statements that are not historical facts and can
be identified by terms such as “anticipate,” “believe,” “could,”
“seek,” “estimate,” “expect,” “intend,” “may,” “plan,” “potential,”
“predict,” “project,” “should,” “will,” “would” or similar
expressions and the negatives of those terms.
Forward-looking statements inherently involve known and unknown
risks, uncertainties and other factors that may cause our actual
results, performance or achievements to be materially different
from any future results, performance or achievements expressed or
implied by the forward-looking statements. Given these
uncertainties, you should not place undue reliance on
forward-looking statements. Also, forward-looking statements
represent our management’s beliefs and assumptions only as of the
date of this release. Important factors that could cause actual
results to differ materially from our expectations include, but are
not limited to: future demand for renewable energy including solar
energy solutions; 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;
macroeconomic conditions in our domestic and international markets,
as well as inflation concerns, rising interest rates, and
recessionary concerns; 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 and periodic downturns; product
quality or performance problems in our products; shortages, delays,
price changes, or cessation of operations or production affecting
our suppliers of key components; 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 the conflict between Russia and Ukraine; our customers’
financial stability and our ability to retain customers; our
ability to retain key personnel and attract additional qualified
personnel; performance of distributors and large installers in
selling our products; consolidation in the solar industry among our
customers and distributors; our ability to manage effectively the
growth of our organization and expansion into new markets and
integration of acquired businesses; our ability to recognize
expected benefits from restructuring plans; any unauthorized access
to, disclosure, or theft of personal information or unauthorized
access to our network or other similar cyber incidents; disruption
to our business operations due to the evolving state of war in
Israel and political conditions related to the Israeli government's
plans to significantly reduce the Israeli Supreme Court's judicial
oversight; our dependence on ocean transportation to timely deliver
our products in a cost-effective manner; fluctuations in global
currency exchange rates; the impact of evolving legal and
regulatory requirements, including emerging environmental, social
and governance requirements; changes to net metering policies or
the reduction, elimination or expiration of government subsidies
and economic incentives for on-grid solar energy applications;
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; changes in the U.S. trade
environment, including the imposition of import tariffs; business
practices and regulatory compliance of our raw material suppliers;
our ability to maintain our brand and to protect and defend our
intellectual property; the impairment of our goodwill or other
intangible assets; volatility of our stock price; our customers’
financial stability, creditworthiness, and debt leverage ratio; our
ability to retain key personnel and attract additional qualified
personnel; our ability to effectively design, launch, market, and
sell new generations of our products and services; our ability to
retain, and events affecting, our major customers; our ability to
service our debt; future goodwill impairments; and the other
factors set forth under “Item 1A. Risk Factors” in our Annual
Report on Form 10-K for the year ended December 31, 2023, filed on
February 26, 2024, in subsequent Quarterly Reports on Form 10Q and
in other documents we file from time to time with the SEC that
disclose risks and uncertainties that may affect our business. The
preceding list is not intended to be an exhaustive list of all of
our forward-looking statements. You should not rely upon
forward-looking statements as predictions of future events.
Although we believe that the expectations reflected in the
forward-looking statements are reasonable, we cannot guarantee that
future results, levels of activity, performance and events and
circumstances reflected in the forward-looking statements will be
achieved or will occur. Statements in this press release speak only
as of the date they were made. 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.
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,
2024
2023
2024
2023
Unaudited
Unaudited
Revenues
$
260,903
$
725,305
$
730,707
$
2,660,484
Cost of revenues
963,229
582,488
1,470,189
1,900,236
Gross profit (loss)
(702,326
)
142,817
(739,482
)
760,248
Operating expenses:
Research and development
70,372
80,082
214,999
246,481
Sales and marketing
37,427
40,351
116,316
125,539
General and administrative
41,212
39,110
111,085
111,876
Other operating expense (income), net
233,929
—
237,271
(1,434
)
Total
operating expenses
382,940
159,543
679,671
482,462
Operating income (loss)
(1,085,266
)
(16,726
)
(1,419,153
)
277,786
Financial income (expense), net
5,558
(7,901
)
(2,371
)
19,157
Other income (loss), net
(3,928
)
(484
)
14,623
(609
)
Income (loss) before income taxes
(1,083,636
)
(25,111
)
(1,406,901
)
296,334
Income taxes
(121,108
)
(36,065
)
(85,109
)
(99,622
)
Net loss from equity method
investments
(577
)
—
(1,440
)
—
Net income (loss)
$
(1,205,321
)
$
(61,176
)
$
(1,493,450
)
$
196,712
SOLAREDGE TECHNOLOGIES INC.
CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands, except per
share data)
September 30,
2024
December 31,
2023
ASSETS
CURRENT ASSETS:
Cash and cash equivalents
$
303,904
$
338,468
Marketable securities
374,869
521,570
Trade receivables, net of allowances of
$41,501 and $16,400, respectively
239,408
622,425
Inventories, net
798,383
1,443,449
Prepaid expenses and other current
assets
401,551
378,394
Total current
assets
2,118,115
3,304,306
LONG-TERM ASSETS:
Marketable securities
56,041
407,825
Deferred tax assets, net
—
80,912
Property, plant and equipment, net
423,905
614,579
Operating lease right-of-use assets,
net
43,088
64,167
Intangible assets, net
11,169
35,345
Goodwill
51,875
42,996
Other long-term assets
112,201
37,601
Total
long-term assets
698,279
1,283,425
Total
assets
2,816,394
4,587,731
LIABILITIES AND STOCKHOLDERS’ EQUITY
CURRENT LIABILITIES:
Trade payables, net
$
94,730
$
386,471
Employees and payroll accruals
70,120
76,966
Warranty obligations
163,561
183,047
Deferred revenues and customers
advances
27,367
40,836
Accrued expenses and other current
liabilities
202,134
205,911
Convertible senior notes, net
345,900
—
Total current
liabilities
903,812
893,231
LONG-TERM LIABILITIES:
Convertible senior notes, net
329,614
627,381
Warranty obligations
315,343
335,197
Deferred revenues
226,770
214,607
Finance lease liabilities
39,197
41,892
Operating lease liabilities
31,293
45,070
Other long-term liabilities
13,999
18,444
Total
long-term liabilities
956,216
1,282,591
COMMITMENTS AND CONTINGENT LIABILITIES
STOCKHOLDERS’ EQUITY:
Common stock of $0.0001 par value -
Authorized: 125,000,000 shares; issued: 57,935,436 shares at
September 30, 2024 and 57,123,437 shares at December 31, 2023;
outstanding: 57,182,072 shares at September 30, 2024 and 57,123,437
shares at December 31, 2023.
6
6
Additional paid-in capital
1,779,212
1,680,622
Treasury stock, at cost; 753,364 shares
held
(50,315
)
—
Accumulated other comprehensive loss
(57,253
)
(46,885
)
Retained earnings (Accumulated
deficit)
(715,284
)
778,166
Total
stockholders’ equity
956,366
2,411,909
Total
liabilities and stockholders’ equity
$
2,816,394
$
4,587,731
SOLAREDGE TECHNOLOGIES INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands,
except per share data)
Nine Months Ended September
30,
2024
2023
Cash flows from
operating activities:
Net income (loss)
$
(1,493,450
)
$
196,712
Adjustments to reconcile net income (loss)
to net cash provided by (used in) operating activities:
Depreciation and amortization
47,215
42,019
Provision to write down inventories to net
realizable value
638,966
20,674
Loss on impairment and disposal of
property, plant and equipment
206,620
—
Stock-based compensation expenses
112,818
115,015
Impairment of goodwill and intangible
assets
24,725
—
Deferred income taxes, net
79,831
(18,199
)
Gain from repurchasing of convertible
notes
(15,455
)
—
Loss (gain) from exchange rate
fluctuations
8,243
(8,170
)
Other items
10,299
6,915
Changes in assets and liabilities:
Trade receivables, net
379,214
(40,011
)
Inventories, net
15,858
(458,475
)
Prepaid expenses and other assets
(38,223
)
19,822
Operating lease right-of-use assets,
net
12,286
12,323
Trade payables, net
(284,255
)
(53,996
)
Warranty obligations
(39,294
)
130,863
Deferred revenues and customers
advances
1,253
18,580
Operating lease liabilities
(11,881
)
(11,945
)
Accrued expenses and other liabilities,
net
19,574
(12,330
)
Net cash used in operating activities
(325,656
)
(40,203
)
Cash flows from
investing activities:
Investment in available-for-sale
marketable securities
(200,919
)
(214,516
)
Proceeds from maturities of
available-for-sale marketable securities
632,866
191,810
Proceeds from sales of available-for-sale
marketable securities
70,642
2,807
Purchase of property, plant and
equipment
(95,905
)
(130,024
)
Business combinations, net of cash
acquired
(10,417
)
(16,653
)
Purchase of intangible assets
(10,000
)
(10,600
)
Disbursements for loans receivables
(37,500
)
(13,000
)
Investment in privately-held companies
(25,742
)
(8,000
)
Other investing activities
(4,270
)
9,989
Net cash provided by (used in) investing
activities
318,755
(188,187
)
Cash flows from
financing activities:
Repurchase of common stock
(50,315
)
—
Partial repurchase of Notes 2025
(267,900
)
—
Proceeds from issuance of Notes 2029, net
of issuance costs
329,214
—
Capped call transactions related to Notes
2029
(28,342
)
—
Tax withholding in connection with
stock-based awards, net
(592
)
(9,267
)
Other financing activities
(1,938
)
(2,038
)
Net cash used in financing activities
(19,873
)
(11,305
)
Effect of exchange rate differences on
cash and cash equivalents
(7,790
)
7,705
Decrease in cash and cash equivalents
(34,564
)
(231,990
)
Cash and cash equivalents at the beginning
of the period
338,468
783,112
Cash and cash equivalents at the end of
the period
$
303,904
$
551,122
SOLAREDGE TECHNOLOGIES INC.
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (Unaudited) (in
thousands, except per share data and percentages)
Three months ended
Year ended
September 30, 2024
June 30, 2024
March 31, 2024
December 31, 2023
September 30, 2023
December 31, 2023
December 31, 2022
December 31, 2021
Gross profit (loss) (GAAP)
$
(702,326
)
$
(10,969
)
$
(26,187
)
$
(56,425
)
$
142,817
$
703,823
$
844,648
$
629,318
Revenues from finance component
(250
)
(246
)
(234
)
(230
)
(215
)
(834
)
(614
)
(418
)
Discontinued operation
(6
)
(757
)
(434
)
36,648
—
36,648
4,314
—
Stock-based compensation
6,039
6,218
5,968
5,468
5,882
23,200
21,818
18,743
Amortization of stock-based compensation
capitalized in inventories
1,484
362
197
343
441
1,100
—
—
Amortization and depreciation of acquired
asset
2,034
1,343
1,551
1,555
2,096
6,038
7,429
9,326
Restructuring charges
1,216
4,519
5,822
23,154
—
23,154
—
—
Gross profit (loss) (Non-GAAP)
$
(691,809
)
$
470
$
(13,317
)
$
10,513
$
151,021
$
793,129
$
877,595
$
656,969
Gross margin (loss) (GAAP)
(269.2
)%
(4.1
)%
(12.8
)%
(17.9
)%
19.7
%
23.6
%
27.2
%
32.0
%
Revenues from finance component
(0.1
)
0.0
(0.1
)
(0.1
)
0.0
0.0
0.0
0.0
Discontinued operation
0.0
(0.3
)
(0.2
)
11.6
—
1.2
0.1
—
Stock-based compensation
2.3
2.3
2.9
1.8
0.8
0.9
0.7
1.0
Amortization of stock-based compensation
capitalized in inventories
0.6
0.1
0.1
0.1
0.0
0.0
—
—
Amortization and depreciation of acquired
asset
1.0
0.5
0.8
0.5
0.3
0.2
0.2
0.5
Restructuring charges
0.0
1.7
2.8
7.3
—
0.8
—
—
Gross margin (loss) (Non-GAAP)
(265.4
)%
0.2
%
(6.5
)%
3.3
%
20.8
%
26.7
%
28.2
%
33.5
%
Operating expenses (GAAP)
$
382,940
$
149,213
$
147,518
$
181,156
$
159,543
$
663,618
$
678,528
$
422,179
Stock-based compensation - R&D
(17,115
)
(17,639
)
(17,139
)
(15,982
)
(16,481
)
(66,944
)
(63,211
)
(45,424
)
Stock-based compensation - S&M
(6,816
)
(8,149
)
(7,911
)
(7,347
)
(7,739
)
(30,987
)
(31,017
)
(22,834
)
Stock-based compensation - G&A
(6,672
)
(6,565
)
(6,588
)
(6,133
)
(6,713
)
(28,814
)
(29,493
)
(15,592
)
Amortization and depreciation of acquired
assets - R&D
(270
)
(271
)
(270
)
(58
)
(329
)
(989
)
(1,206
)
(530
)
Amortization and depreciation of acquired
assets - S&M
(566
)
(467
)
(124
)
(190
)
(321
)
(927
)
(822
)
(927
)
Amortization and depreciation of acquired
assets - G&A
(2
)
(2
)
(2
)
(2
)
(4
)
(15
)
(21
)
(29
)
Discontinued operation
11
—
47
(388
)
—
(388
)
—
—
Restructuring charges
(1,299
)
(366
)
(3,943
)
—
—
—
—
—
Assets impairment and disposal by
abandonment
(232,102
)
—
(1,732
)
(30,790
)
—
(30,790
)
(119,141
)
(2,209
)
Gain (loss) from assets sales
(1,827
)
(951
)
(1,058
)
(172
)
—
1,262
2,603
976
Certain litigation and other
contingencies
—
—
399
(1,786
)
—
(1,786
)
—
—
Acquisition costs
—
—
(9
)
—
—
(135
)
(350
)
—
Operating expenses (Non-GAAP)
$
116,282
$
114,803
$
109,188
$
118,308
$
127,956
$
503,105
$
435,870
$
335,610
SOLAREDGE TECHNOLOGIES INC.
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (Unaudited) (in
thousands, except per share data and percentages)
Three months ended
Year ended
September 30, 2024
June 30, 2024
March 31, 2024
December 31, 2023
September 30, 2023
December 31, 2023
December 31, 2022
December 31, 2021
Operating income (loss) (GAAP)
$
(1,085,266
)
$
(160,182
)
$
(173,705
)
$
(237,581
)
$
(16,726
)
$
40,205
$
166,120
$
207,139
Revenues from finance component
(250
)
(246
)
(234
)
(230
)
(215
)
(834
)
(614
)
(418
)
Discontinued operation
(17
)
(757
)
(481
)
37,036
—
37,036
4,314
—
Stock-based compensation
36,642
38,571
37,606
34,930
36,815
149,945
145,539
102,593
Amortization of stock-based compensation
capitalized in inventories
1,484
362
197
343
441
1,100
—
—
Amortization and depreciation of acquired
assets
2,872
2,083
1,947
1,805
2,750
7,969
9,478
10,812
Restructuring charges
2,515
4,885
9,765
23,154
—
23,154
—
—
Assets impairment and disposal by
abandonment
232,102
—
1,732
30,790
—
30,790
119,141
2,209
Loss (gain) from assets sales
1,827
951
1,058
172
—
(1,262
)
(2,603
)
(976
)
Certain litigation and other
contingencies
—
—
(399
)
1,786
—
1,786
—
—
Acquisition costs
—
—
9
—
—
135
350
—
Operating income (loss)
(Non-GAAP)
$
(808,091
)
$
(114,333
)
$
(122,505
)
$
(107,795
)
$
23,065
$
290,024
$
441,725
$
321,359
Financial income (expense), net
(GAAP)
$
5,558
$
(865
)
$
(7,064
)
$
22,055
$
(7,901
)
$
41,212
$
3,750
$
(19,915
)
Non cash interest expense
3,785
3,636
3,536
3,422
3,284
12,703
9,954
8,674
Unrealized losses (gains)
—
—
—
—
—
—
119
(541
)
Currency fluctuation related to lease
standard
966
(1,523
)
(1,276
)
4,359
(2,788
)
(3,055
)
(11,187
)
2,007
Financial income (expense), net
(Non-GAAP)
$
10,309
$
1,248
$
(4,804
)
$
29,836
$
(7,405
)
$
50,860
$
2,636
$
(9,775
)
Other income (loss) (GAAP)
$
(3,928
)
$
18,551
$
—
$
291
$
(484
)
$
(318
)
$
7,285
$
—
Loss (gain) from sale of equity and debt
investments
(1,072
)
(1,970
)
—
(291
)
484
193
(8,008
)
—
Loss (gain) from business combination
—
$
(1,125
)
$
—
$
—
$
—
$
—
$
—
$
—
Gain from the repurchase of convertible
notes
$
—
$
(15,456
)
$
—
$
—
$
—
$
—
$
—
$
—
Loss from impairment of private held
companies
$
5,000
$
—
$
—
$
—
$
—
$
—
$
—
$
—
Other loss (Non-GAAP)
$
—
$
—
$
—
$
—
$
—
$
(125
)
$
(723
)
$
—
Tax benefits (income taxes)
(GAAP)
$
(121,108
)
$
12,245
$
23,754
$
53,202
$
(36,065
)
$
(46,420
)
$
(83,376
)
$
(18,054
)
Uncertain tax positions
—
—
—
—
—
—
—
(9,007
)
Income tax adjustment
44,602
(357
)
(5,062
)
(27,699
)
(10,561
)
(45,896
)
(9,067
)
(11,639
)
Tax benefits (income taxes)
(Non-GAAP)
$
(76,506
)
$
11,888
$
18,692
$
25,503
$
(46,626
)
$
(92,316
)
$
(92,443
)
$
(38,700
)
Equity method investments loss
(GAAP)
$
(577
)
$
(567
)
$
(296
)
$
(350
)
$
—
$
(350
)
$
—
$
—
Loss from equity method investments
577
567
296
350
—
350
—
—
Equity method investments loss
(Non-GAAP)
$
—
$
—
$
—
$
—
$
—
$
—
$
—
$
—
SOLAREDGE TECHNOLOGIES INC.
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (Unaudited) (in
thousands, except per share data and percentages)
Three months ended
Year ended
September 30, 2024
June 30, 2024
March 31, 2024
December 31, 2023
September 30, 2023
December 31, 2023
December 31, 2022
December 31, 2021
Net income (loss) (GAAP)
$
(1,205,321
)
$
(130,818
)
$
(157,311
)
$
(162,383
)
$
(61,176
)
$
34,329
$
93,779
$
169,170
Revenues from finance component
(250
)
(246
)
(234
)
(230
)
(215
)
(834
)
(614
)
(418
)
Discontinued operation
(17
)
(757
)
(481
)
37,036
—
37,036
4,314
—
Stock-based compensation
36,642
38,571
37,606
34,930
36,815
149,945
145,539
102,593
Amortization of stock-based compensation
capitalized in inventories
1,484
362
197
343
441
1,100
—
—
Amortization and depreciation of acquired
assets
2,872
2,083
1,947
1,805
2,750
7,969
9,478
10,812
Restructuring charges
2,515
4,885
9,765
23,154
—
23,154
—
—
Assets impairment and disposal by
abandonment
232,102
—
1,732
30,790
—
30,790
119,141
2,209
Loss (gain) from assets sales
1,827
951
1,058
172
—
(1,262
)
(2,603
)
(976
)
Certain litigation and other
contingencies
—
—
(399
)
1,786
—
1,786
—
—
Acquisition costs
—
—
9
—
—
135
350
—
Non cash interest expense
3,785
3,636
3,536
3,422
3,284
12,703
9,954
8,674
Unrealized losses (gains)
—
—
—
—
—
—
119
(541
)
Currency fluctuation related to lease
standard
966
(1,523
)
(1,276
)
4,359
(2,788
)
(3,055
)
(11,187
)
2,007
Loss (gain) from sale of equity and debt
investments
(1,072
)
(1,970
)
—
(291
)
484
193
(8,008
)
—
Loss (gain) from business combination
—
(1,125
)
—
—
—
—
—
—
Gain from the repurchase of convertible
notes
—
(15,456
)
—
—
—
—
—
—
Loss from impairment of private held
companies
5,000
—
—
—
—
—
—
—
Uncertain tax positions
—
—
—
—
—
—
—
(9,007
)
Income tax adjustment
44,602
(357
)
(5,062
)
(27,699
)
(10,561
)
(45,896
)
(9,067
)
(11,639
)
equity method adjustments
577
567
296
350
—
350
—
—
Net income (loss) (Non-GAAP)
$
(874,288
)
$
(101,197
)
$
(108,617
)
$
(52,456
)
$
(30,966
)
$
248,443
$
351,195
$
272,884
SOLAREDGE TECHNOLOGIES INC.
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (Unaudited) (in
thousands, except per share data and percentages)
Three months ended
Year ended
September 30, 2024
June 30, 2024
March 31, 2024
December 31, 2023
September 30, 2023
December 31, 2023
December 31, 2022
December 31, 2021
Net basic earnings (loss) per share
(GAAP)
$
(21.13
)
$
(2.31
)
$
(2.75
)
$
(2.85
)
$
(1.08
)
$
0.61
$
1.70
$
3.24
Revenues from finance component
(0.01
)
0.00
(0.01
)
(0.01
)
0.00
(0.02
)
(0.01
)
(0.01
)
Discontinued operation
0.00
(0.02
)
(0.01
)
0.65
—
0.66
0.08
—
Stock-based compensation
0.64
0.69
0.66
0.62
0.65
2.65
2.64
1.97
Amortization of stock-based compensation
capitalized in inventories
0.03
0.00
0.01
0.00
0.00
0.02
—
—
Amortization and depreciation of acquired
assets
0.05
0.04
0.03
0.04
0.05
0.14
0.17
0.21
Restructuring charges
0.04
0.08
0.17
0.40
—
0.41
—
—
Assets impairment and disposal by
abandonment
4.07
—
0.03
0.54
—
0.54
2.17
0.05
Loss (gain) from assets sales
0.04
0.02
0.02
0.01
—
(0.02
)
(0.05
)
(0.03
)
Certain litigation and other
contingencies
—
—
(0.01
)
0.03
—
0.03
—
—
Acquisition costs
—
—
0.00
—
—
0.00
0.01
—
Non cash interest expense
0.06
0.07
0.06
0.06
0.06
0.23
0.18
0.16
Unrealized losses (gains)
—
—
—
—
—
—
0.00
(0.01
)
Currency fluctuation related to lease
standard
0.02
(0.04
)
(0.02
)
0.07
(0.05
)
(0.06
)
(0.21
)
0.04
Loss (gain) from sale of equity and debt
investments
(0.02
)
(0.03
)
—
0.00
0.01
0.01
(0.14
)
—
Loss (gain) from business combination
—
(0.02
)
—
—
—
—
—
—
Gain from the repurchase of convertible
notes
—
(0.27
)
—
—
—
—
—
—
Loss from impairment of private held
companies
0.09
—
—
—
—
—
—
—
Uncertain tax positions
—
—
—
—
—
—
—
(0.17
)
Income tax adjustment
0.78
(0.01
)
(0.09
)
(0.49
)
(0.19
)
(0.81
)
(0.16
)
(0.22
)
Equity method adjustments
0.01
0.01
0.01
0.01
—
0.00
—
—
Net basic earnings (loss) per share
(Non-GAAP)
$
(15.33
)
$
(1.79
)
$
(1.90
)
$
(0.92
)
$
(0.55
)
$
4.39
$
6.38
$
5.23
SOLAREDGE TECHNOLOGIES INC.
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (Unaudited) (in
thousands, except per share data and percentages)
Three months ended
Year ended
September 30, 2024
June 30, 2024
March 31, 2024
December 31, 2023
September 30, 2023
December 31, 2023
December 31, 2022
December 31, 2021
Net diluted earnings (loss) per share
(GAAP)
$
(21.13
)
$
(2.31
)
$
(2.75
)
$
(2.85
)
$
(1.08
)
$
0.60
$
1.65
$
3.06
Revenues from finance component
(0.01
)
0.00
(0.01
)
(0.01
)
0.00
(0.01
)
(0.01
)
(0.01
)
Discontinued operation
0.00
(0.02
)
(0.01
)
0.65
—
0.64
0.08
—
Stock-based compensation
0.64
0.69
0.66
0.62
0.65
2.57
2.43
1.77
Amortization of stock-based compensation
capitalized in inventories
0.03
0.00
0.01
0.00
0.00
0.02
—
—
Amortization and depreciation of acquired
assets
0.05
0.04
0.03
0.04
0.05
0.14
0.16
0.19
Restructuring charges
0.04
0.08
0.17
0.40
—
0.40
—
—
Assets impairment and disposal by
abandonment
4.07
—
0.03
0.54
—
0.53
2.02
0.04
Loss (gain) from assets sales
0.04
0.02
0.02
0.01
—
(0.02
)
(0.04
)
(0.02
)
Certain litigation and other
contingencies
—
—
(0.01
)
0.03
—
0.03
—
—
Acquisition costs
—
—
0.00
—
—
0.00
0.00
—
Non cash interest expense
0.06
0.07
0.06
0.06
0.06
0.03
0.13
0.12
Unrealized losses (gains)
—
—
—
—
—
—
0.00
(0.01
)
Currency fluctuation related to lease
standard
0.02
(0.04
)
(0.02
)
0.07
(0.05
)
(0.05
)
(0.19
)
0.03
Loss (gain) from sale of equity and debt
investments
(0.02
)
(0.03
)
—
0.00
0.01
0.00
(0.13
)
—
Loss (gain) from business combination
—
(0.02
)
—
—
—
—
—
—
Gain from the repurchase of convertible
notes
—
(0.27
)
—
—
—
—
—
—
Loss from impairment of private held
companies
0.09
—
—
—
—
—
—
—
Uncertain tax positions
—
—
—
—
—
—
—
(0.16
)
Income tax adjustment
0.78
(0.01
)
(0.09
)
(0.49
)
(0.19
)
(0.76
)
(0.15
)
(0.20
)
Equity method adjustments
0.01
0.01
0.01
0.01
—
0.00
—
—
Net diluted earnings (loss) per share
(Non-GAAP)
$
(15.33
)
$
(1.79
)
$
(1.90
)
$
(0.92
)
$
(0.55
)
$
4.12
$
5.95
$
4.81
Number of shares used in computing net
diluted earnings (loss) per share (GAAP)
57,029,983
56,687,006
57,140,126
56,916,831
56,671,504
57,237,518
55,087,770
55,971,030
Stock-based compensation
—
—
—
—
—
725,859
963,373
773,636
Notes due 2025
—
—
—
—
—
2,276,818
—
—
Number of shares used in computing net
diluted earnings (loss) per share (Non-GAAP)
57,029,983
56,687,006
57,140,126
56,916,831
56,671,504
60,240,195
56,051,143
56,744,666
View source
version on businesswire.com: https://www.businesswire.com/news/home/20241106654246/en/
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 (NASDAQ:SEDG)
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