SolarEdge Announces Second Quarter 2023 Financial Results
SolarEdge Technologies, Inc. (Nasdaq: SEDG), a global leader in smart energy technology, today announced its financial results for the second quarter ended June 30, 2023.
Second Quarter 2023 Highlights
Record revenues of $991.3 million Record revenues from solar segment of $947.4 million GAAP gross margin of 32.0% Non-GAAP gross margin* of 32.7% Gross margin from solar segment of 34.7% Record GAAP operating income of $150.4 million Record non-GAAP operating income* of $191.0 million GAAP net income of $119.5 million Non-GAAP net income* of $157.4 million GAAP net diluted earnings per share ("EPS") of $2.03 Non-GAAP net diluted EPS* of $2.62 Record 4.3 Gigawatts (AC) of inverters shipped 269 MWh of batteries shipped
"We are pleased with our results for the second quarter, in particular our strong performance in Europe in both the residential and commercial solar segments. While the U.S. residential solar market is currently seeing some headwinds primarily related to higher interest rates, we are navigating through this period by leveraging our geographic and multi-segment strengths in the solar markets and expect to benefit from the positive long-term outlook for this sector," said Zvi Lando, Chief Executive Officer of SolarEdge.
Second Quarter 2023 Summary
The Company reported record revenues of $991.3 million, up 5% from $943.9 million in the prior quarter and up 36% from $727.8 million in the same quarter last year.
Revenues from the solar segment were a record $947.4 million, up 4% from $908.5 million in the prior quarter and up 38% from $687.6 million in the same quarter last year.
GAAP gross margin was 32.0%, up from 31.8% in the prior quarter and up from 25.1% in the same quarter last year.
Non-GAAP gross margin* was 32.7%, up slightly from 32.6% in the prior quarter and up from 26.7% in the same quarter last year.
Gross margin from the solar segment was 34.7%, down slightly from 35.0% in the prior quarter and up from 28.1% in the same quarter last year.
GAAP operating expenses were $166.9 million, up 7% from $156.0 million in the prior quarter and up 14% from $146.6 million in the same quarter last year.
Non-GAAP operating expenses* were $133.3 million, up 8% from $123.6 million in the prior quarter and up 22% from $109.6 million in the same quarter last year.
GAAP operating income was a record $150.4 million, up 4% from $144.2 million in the prior quarter and up 318% from $36.0 million in the same quarter last year.
Non-GAAP operating income* was a record $191.0 million, up 4% from $183.8 million in the prior quarter and up 126% from $84.7 million in the same quarter last year.
GAAP net income was $119.5 million, down 14% from $138.4 million in the prior quarter and up 692% from $15.1 million in the same quarter last year.
Non-GAAP net income* was $157.4 million, down 10% from $174.5 million in the prior quarter and up 177% from $56.7 million in the same quarter last year.
GAAP net diluted EPS was $2.03, down from $2.35 in the prior quarter and up from $0.26 in the same quarter last year.
Non-GAAP net diluted EPS* was $2.62, down from $2.90 in the prior quarter and up from $0.95 in the same quarter last year.
Cash used in operating activities was $88.7 million, compared with $7.9 million generated from operating activities in the prior quarter and $77.4 million generated from operating activities in the same quarter last year.
As of June 30, 2023, cash, cash equivalents, bank deposits, restricted bank deposits and marketable securities totaled $853.5 million, net of debt, compared to $1.01 billion on March 31, 2023.
Outlook for the Third Quarter 2023
The Company also provides guidance for the third quarter ending September 30, 2023 as follows:
Revenues to be within the range of $880 million to $920 million Non-GAAP gross margin** expected to be within the range of 28% to 31% Non-GAAP operating income** to be within the range of $115 million to $135 million Revenues from the solar segment to be within the range of $850 million to $890 million Gross margin from the solar segment expected to be within the range of 30% to 33%
* 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.
Conference Call
The Company will host a conference call to discuss these results at 4:30 p.m. ET on Tuesday, August 1, 2023. The call will be available, live, to interested parties by dialing 877-888-4294. For international callers, please dial +1 785-424-1881. 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; 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, the 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 August 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.
SOLAREDGE TECHNOLOGIES INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(in thousands, except per share data)
Three Months Ended Six Months Ended
June 30, June 30,
------------------------------------------------------------------------------------------------------------ ----------------------------------------------------------------------------------------------------------------------
2023 2022 2023 2022
---------------------------------- ------------------------------------------------------ ------------------------------------------------- -------------------------------------------------
Unaudited
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Revenues $ 991,290 $ 727,774 $ 1,935,179 $ 1,382,854
Cost of revenues 673,985 545,132 1,317,748 1,021,254
-------------------- -------------- -------------------- -------------- -------------------- -------------------- --------- -------------------- -------------------- --------- --------------------
Gross profit 317,305 182,642 617,431 361,600
-------------------- -------------- -------------------- -------------- -------------------- -------------------- --------- -------------------- -------------------- --------- --------------------
Operating expenses:
86,526 74,847 166,399 141,196
Research and development
44,222 38,975 85,188 74,291
Sales and marketing
36,199 28,121 72,766 54,550
General and administrative
-- 4,687 (1,434 ) 4,687
Other operating expense (income), net
-------------------- -------------- -------------------- -------------- -------------------- -------------------- --------- -------------------- -------------------- --------- --------------------
Total operating expenses 166,947 146,630 322,919 274,724
--------------------------------------- -------------------- -------------- -------------------- -------------- -------------------- -------------------- --------- -------------------- -------------------- --------- --------------------
Operating income 150,358 36,012 294,512 86,876
Financial income (expense), net 3,384 (14,311 ) 27,058 (18,916 )
Other loss -- -- (125 ) (844 )
-------------------- -------------- -------------------- -------------- -------------------- -------------------- --------- -------------------- -------------------- --------- --------------------
Income before income taxes 153,742 21,701 321,445 67,116
Income taxes 34,232 6,617 63,557 18,909
-------------------- -------------- -------------------- -------------- -------------------- -------------------- --------- -------------------- -------------------- --------- --------------------
SOLAREDGE TECHNOLOGIES INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands, except per share data)
June 30, December 31,
2023 2022
------------------------------------------------- -------------------------------------------------
ASSETS
CURRENT ASSETS:
$ 557,744 $ 783,112
Cash and cash equivalents
493,176 241,117
Marketable securities
1,149,820 905,146
Trade receivables, net of allowances of $6,890 and $3,202, respectively
984,194 729,201
Inventories, net
264,188 241,082
Prepaid expenses and other current assets
-------------------- --------- -------------------- -------------------- --------- --------------------
Total current assets 3,449,122 2,899,658
-------------------- --------- -------------------- -------------------- --------- --------------------
LONG-TERM ASSETS:
435,800 645,491
Marketable securities
49,993 44,153
Deferred tax assets, net
580,503 543,969
Property, plant and equipment, net
66,387 62,754
Operating lease right-of-use assets, net
43,656 19,929
Intangible assets, net
42,332 31,189
Goodwill
28,772 18,806
Other long-term assets
-------------------- --------- -------------------- -------------------- --------- --------------------
Total long-term assets 1,247,443 1,366,291
-------------------- --------- -------------------- -------------------- --------- --------------------
Total assets $ 4,696,565 $ 4,265,949
==================== ========= ==================== ==================== ========= ====================
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
434,602 459,831
Trade payables, net
74,709 85,158
Employees and payroll accruals
146,150 103,975
Warranty obligations
28,135 26,641
Deferred revenues and customers advances
214,133 214,112
Accrued expenses and other current liabilities
-------------------- --------- -------------------- -------------------- --------- --------------------
Total current liabilities 897,729 889,717
-------------------- --------- -------------------- -------------------- --------- --------------------
LONG-TERM LIABILITIES:
625,914 624,451
Convertible senior notes, net
342,437 281,082
Warranty obligations
204,693 186,936
Deferred revenues
42,208 45,385
Finance lease liabilities
47,046 46,256
Operating lease liabilities
16,349 15,756
Other long-term liabilities
-------------------- --------- -------------------- -------------------- --------- --------------------
Total long-term liabilities 1,278,647 1,199,866
-------------------- --------- -------------------- -------------------- --------- --------------------
COMMITMENTS AND CONTINGENT LIABILITIES
STOCKHOLDERS' EQUITY:
Common stock of $0.0001 par value - Authorized: 125,000,000 shares as of June 30, 2023 and December 31, 2022; issued and outstanding: 56,556,340 and 56,133,404 shares as of June 30, 2023 and December 31, 2022, respectively 6 6
1,595,890 1,505,632
Additional paid-in capital
(77,432 ) (73,109 )
Accumulated other comprehensive loss
1,001,725 743,837
Retained earnings
-------------------- --------- -------------------- -------------------- --------- --------------------
Total stockholders' equity 2,520,189 2,176,366
-------------------- --------- -------------------- -------------------- --------- --------------------
SOLAREDGE TECHNOLOGIES INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands, except per share data)
Six Months Ended
June 30,
--------------------------------------------------------------------------------------------------------------------------------
2023 2022
------------------------------------------------------ ------------------------------------------------------
Cash flows from operating activities:
$ 257,888 $ 48,207
Net income
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
26,725 24,138
Depreciation and amortization
(23,214 ) 20,398
Loss (gain) from exchange rate fluctuations
78,200 71,181
Stock-based compensation expenses
-- 4,008
Impairment of goodwill and intangible assets
(7,636 ) (1,092 )
Deferred income taxes, net
4,783 11,396
Other items
Changes in assets and liabilities:
(246,193 ) (93,348 )
Inventories, net
(33,285 ) (79,215 )
Prepaid expenses and other assets
(235,086 ) (235,316 )
Trade receivables, net
(22,304 ) (7,339 )
Trade payables, net
8,283 5,202
Employees and payroll accruals
103,524 59,588
Warranty obligations
17,222 32,277
Deferred revenues and customers advances
(9,695 ) 54,341
Accrued expenses and other liabilities, net
-------------------- -------------- -------------------- -------------------- -------------- --------------------
Net cash used in operating activities (80,788 ) (85,574 )
-------------------- -------------- -------------------- -------------------- -------------- --------------------
Cash flows from investing activities:
(124,138 ) (362,119 )
Investment in available-for-sale marketable securities
86,813 126,287
Proceed from sales and maturities of available-for-sale marketable securities
(84,075 ) (91,884 )
Purchase of property, plant and equipment
(16,653 ) --
Business combinations, net of cash acquired
(10,000 ) --
Purchase of intangible assets
(6,750 ) --
Investment in privately-held companies
6,797 --
Proceed from government grants in relation to capital expenditures
3,552 1,783
Other investing activities
-------------------- -------------- -------------------- -------------------- -------------- --------------------
Net cash used in investing activities (144,454 ) (325,933 )
-------------------- -------------- -------------------- -------------------- -------------- --------------------
Cash flows from financing activities:
(8,811 ) (2,318 )
Tax withholding in connection with stock-based awards, net
(1,428 ) (1,374 )
Payment of finance lease liability
-- 650,526
Proceeds from secondary public offering, net of issuance costs
98 1,572
Other financing activities
-------------------- -------------- -------------------- -------------------- -------------- --------------------
Net cash provided by (used in) financing activities (10,141 ) 648,406
-------------------- -------------- -------------------- -------------------- -------------- --------------------
Increase (decrease) in cash and cash equivalents (235,383 ) 236,899
Cash and cash equivalents at the beginning of the period 783,112 530,089
Effect of exchange rate differences on cash and cash equivalents 10,015 (21,454 )
-------------------- -------------- -------------------- -------------------- -------------- --------------------
SOLAREDGE TECHNOLOGIES INC.
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (Unaudited)
(in thousands, except per share data and percentages)
Reconciliation of GAAP to Non-GAAP
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Q2-22 Q3-22 Q4-22 Q1-23 Q2-23
------------------------------------------------------ ------------------------------------------------------ ------------------------------------------------------ ------------------------------------------------------ ------------------------------------------------------
Gross profit (GAAP) $ 182,642 $ 222,001 $ 261,047 $ 300,126 $ 317,305
Revenues from finance component (146 ) (159 ) (174 ) (187 ) (202 )
Stock-based compensation 5,286 4,661 6,810 5,927 5,923
Amortization of stock-based compensation capitalized in inventories -- -- -- -- 316
Disposal of assets related to Critical Power 4,314 -- -- -- --
Amortization and depreciation of acquired asset 2,184 2,064 961 1,515 872
-------------------- -------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------- --------------------
Gross profit (Non-GAAP) $ 194,280 $ 228,567 $ 268,644 $ 307,381 $ 324,214
==================== ============== ==================== ==================== ============== ==================== ==================== ============== ==================== ==================== ============== ==================== ==================== ============== ====================
Gross margin (GAAP) 25.1 % 26.5 % 29.3 % 31.8 % 32.0 %
Revenues from finance component 0.0 % 0.0 % 0.0 % 0.0 % 0.0 %
Stock-based compensation 0.7 % 0.6 % 0.8 % 0.6 % 0.6 %
Amortization of stock-based compensation capitalized in inventories -- % -- % -- % -- % 0.0 %
Disposal of assets related to Critical Power 0.6 % -- % -- % -- % -- %
Amortization and depreciation of acquired assets 0.3 % 0.2 % 0.1 % 0.2 % 0.1 %
-------------------- -------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------- --------------------
Gross margin (Non-GAAP) 26.7 % 27.3 % 30.2 % 32.6 % 32.7 %
==================== ============== ==================== ==================== ============== ==================== ==================== ============== ==================== ==================== ============== ==================== ==================== ============== ====================
Operating expenses (GAAP) $ 146,630 $ 137,594 $ 266,210 $ 155,972 $ 166,947
Stock-based compensation - R&D (16,819 ) (14,553 ) (16,854 ) (17,209 ) (17,272 )
Stock-based compensation - S&M (7,047 ) (9,341 ) (7,928 ) (8,079 ) (7,822 )
Stock-based compensation - G&A (7,922 ) (7,196 ) (7,015 ) (8,020 ) (7,948 )
Amortization and depreciation of acquired assets - R&D (300 ) (302 ) (301 ) (313 ) (289 )
Amortization and depreciation of acquired assets - S&M (226 ) (187 ) (173 ) (181 ) (235 )
Amortization and depreciation of acquired assets - G&A (5 ) (6 ) (4 ) (26 ) 17
Assets impairment (4,696 ) 19 (114,473 ) -- --
Gain (loss) from assets sales and disposal -- 2,303 (102 ) 1,434 --
Acquisition costs -- -- (350 ) -- (135 )
-------------------- -------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------- --------------------
SOLAREDGE TECHNOLOGIES INC.
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (Unaudited)
(in thousands, except per share data and percentages)
Reconciliation of GAAP to Non-GAAP
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Q2-22 Q3-22 Q4-22 Q1-23 Q2-23
------------------------------------------------------ ------------------------------------------------------ ------------------------------------------------------ ------------------------------------------------------ ------------------------------------------------------
Operating income (loss) (GAAP) $ 36,012 $ 84,407 $ (5,163 ) $ 144,154 $ 150,358
Revenues from finance component (146 ) (159 ) (174 ) (187 ) (202 )
Disposal of assets related to Critical Power 4,314 -- -- -- --
Stock-based compensation 37,074 35,751 38,607 39,235 38,965
Amortization of stock-based compensation capitalized in inventories -- -- -- -- 316
Amortization and depreciation of acquired assets 2,715 2,559 1,439 2,035 1,379
Assets impairment 4,696 (19 ) 114,473 -- --
Loss (gain) from assets sales and disposal -- (2,303 ) 102 (1,434 ) --
Acquisition costs -- -- 350 -- 135
-------------------- -------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------- --------------------
Operating income (Non-GAAP) $ 84,665 $ 120,236 $ 149,634 $ 183,803 $ 190,951
==================== ============== ==================== ==================== ============== ==================== ==================== ============== ==================== ==================== ============== ==================== ==================== ============== ====================
Financial income (expense), net (GAAP) $ (14,311 ) $ (33,025 ) $ 56,101 $ 23,674 $ 3,384
Non cash interest expense 2,427 2,505 2,685 2,892 3,105
Unrealized losses (gains) -- -- (170 ) -- --
Currency fluctuation related to lease standard (9,028 ) (1,116 ) 749 (2,519 ) (2,107 )
-------------------- -------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------- --------------------
Financial income (expense), net (Non-GAAP) $ (20,912 ) $ (31,636 ) $ 59,365 $ 24,047 $ 4,382
==================== ============== ==================== ==================== ============== ==================== ==================== ============== ==================== ==================== ============== ==================== ==================== ============== ====================
Other income (loss) (GAAP) $ -- $ 7,533 $ 186 $ (125 ) $ --
Gain from sale of investment in privately-held company -- (7,533 ) (186 ) -- --
-------------------- -------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------- --------------------
Other income (loss) (Non-GAAP) $ -- $ -- $ -- $ (125 ) $ --
==================== ============== ==================== ==================== ============== ==================== ==================== ============== ==================== ==================== ============== ==================== ==================== ============== ====================
Income tax benefit (expense) (GAAP) $ (6,617 ) $ (34,172 ) $ (30,295 ) $ (29,325 ) $ (34,232 )
Income tax adjustment (389 ) (291 ) (7,186 ) (3,901 ) (3,735 )
-------------------- -------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------- --------------------
SOLAREDGE TECHNOLOGIES INC.
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (Unaudited)
(in thousands, except per share data and percentages)
Reconciliation of GAAP to Non-GAAP
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Q2-22 Q3-22 Q4-22 Q1-23 Q2-23
------------------------------------------------------ ------------------------------------------------------ ------------------------------------------------------ ------------------------------------------------------ ------------------------------------------------------
Net income (GAAP) $ 15,084 $ 24,743 $ 20,829 $ 138,378 $ 119,510
Revenues from finance component (146 ) (159 ) (174 ) (187 ) (202 )
Disposal of assets related to Critical Power 4,314 -- -- -- --
Stock-based compensation 37,074 35,751 38,607 39,235 38,965
Amortization of stock-based compensation capitalized in inventories -- -- -- -- 316
Amortization and depreciation of acquired assets 2,715 2,559 1,439 2,035 1,379
Assets impairment 4,696 (19 ) 114,473 -- --
Loss (gain) from assets sales and disposal -- (2,303 ) 102 (1,434 ) --
Acquisition costs -- -- 350 -- 135
Non cash interest expense 2,427 2,505 2,685 2,892 3,105
Unrealized losses (gains) -- -- (170 ) -- --
Currency fluctuation related to lease standard (9,028 ) (1,116 ) 749 (2,519 ) (2,107 )
Gain from sale of investment in privately-held company -- (7,533 ) (186 ) -- --
Income tax adjustment (389 ) (291 ) (7,186 ) (3,901 ) (3,735 )
-------------------- -------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------- --------------------
Net income (Non-GAAP) $ 56,747 $ 54,137 $ 171,518 $ 174,499 $ 157,366
==================== ============== ==================== ==================== ============== ==================== ==================== ============== ==================== ==================== ============== ==================== ==================== ============== ====================
Net basic earnings per share (GAAP) $ 0.27 $ 0.44 $ 0.37 $ 2.46 $ 2.12
Revenues from finance component 0.00 0.00 0.00 0.00 (0.01 )
Disposal of assets related to Critical Power 0.08 -- -- -- --
Stock-based compensation 0.67 0.64 0.69 0.70 0.70
Amortization of stock-based compensation capitalized in inventories -- -- -- -- 0.00
Amortization and depreciation of acquired assets 0.04 0.05 0.02 0.03 0.03
Assets impairment 0.09 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 0.04 0.05 0.05 0.05
Unrealized losses (gains) -- -- (0.01 ) -- --
Currency fluctuation related to lease standard (0.16 ) (0.02 ) 0.02 (0.05 ) (0.03 )
Gain from sale of investment in privately-held company -- (0.13 ) (0.01 ) -- --
Income tax adjustment (0.01 ) (0.01 ) (0.13 ) (0.07 ) (0.07 )
-------------------- -------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------- --------------------
SOLAREDGE TECHNOLOGIES INC.
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (Unaudited)
(in thousands, except per share data and percentages)
Reconciliation of GAAP to Non-GAAP
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Q2-22 Q3-22 Q4-22 Q1-23 Q2-23
------------------------------------------------------ ------------------------------------------------------ ------------------------------------------------------ ------------------------------------------------------ ------------------------------------------------------
Net diluted earnings per share (GAAP) $ 0.26 $ 0.43 $ 0.36 $ 2.35 $ 2.03
Revenues from finance component 0.00 0.00 0.00 (0.01 ) (0.01 )
Disposal of assets related to Critical Power 0.08 -- -- -- --
Stock-based compensation 0.62 0.59 0.64 0.62 0.62
Amortization of stock-based compensation capitalized in inventories -- -- -- -- 0.00
Amortization and depreciation of acquired assets 0.04 0.05 0.02 0.03 0.03
Assets impairment 0.08 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 0.03 0.04 0.04
Unrealized losses (gains) -- -- 0.00 -- --
Currency fluctuation related to lease standard (0.15 ) (0.02 ) 0.01 (0.04 ) (0.03 )
Gain from sale of investment in privately-held company -- (0.13 ) 0.00 -- --
Income tax adjustment (0.01 ) 0.00 (0.12 ) (0.07 ) (0.06 )
-------------------- -------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------- --------------------
Net diluted earnings per share (Non-GAAP) $ 0.95 $ 0.91 $ 2.86 $ 2.90 $ 2.62
==================== ============== ==================== ==================== ============== ==================== ==================== ============== ==================== ==================== ============== ==================== ==================== ============== ====================
Number of shares used in computing net diluted earnings per share (GAAP) 58,564,734 58,747,538 58,734,719 59,193,831 59,183,666
Stock-based compensation 904,781 784,228 1,237,266 939,571 986,527
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View source version on businesswire.com: https://www.businesswire.com/news/home/20230801762615/en/
SOURCE: SolarEdge Technologies, Inc.
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
COMTEX_437682168/1006/2023-08-01T16:06:15