SolarEdge Technologies, Inc., 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 a 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 the 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 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 totalled $831.4 million, net of debt, compared to $853.5 million on June 30, 2023.
Outlook for the Fourth Quarter 2023
The Company also provides guidance for the fourth quarter ending December 31, 2023, as follows:
- Revenues are 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 are expected to be within the range of $275 million to $320 million
- The gross margin from the solar segment is expected to be within the range of 7% to 10%, including approximately 130 basis points of net IRA manufacturing tax credit
