SolarEdge Announces First Quarter 2024 Financial Results

SolarEdge Technologies, Inc., a global leader in smart energy technology, announced its financial results for the first quarter ended March 31, 2024.

First Quarter 2024 Highlights

• Revenues of $204.4 million
• Revenues from solar segment of $190.1 million
• GAAP gross margin of negative 12.8%
• Non-GAAP gross margin of negative 6.5%, including 4.5% of net IRA benefit
• Gross margin from solar segment of negative 3.5%
• GAAP operating loss of $173.7 million
• Non-GAAP operating loss of $122.5 million
• GAAP net loss of $157.3 million
• Non-GAAP net loss of $108.6 million
• GAAP net loss per share of $2.75
• Non-GAAP net loss per share of $1.90
• 946 Megawatts (AC) of inverters shipped
• 128 MWh of batteries for PV applications shipped

“Our first quarter results were aligned with our expectations of inventory clearing and typical seasonality,” said Zvi Lando, Chief Executive Officer of SolarEdge. “As we enter spring, when installations historically tend to rise, we expect channel inventory to continue to decline and revenues to improve. In parallel, we are focused on a suite of new products that we plan to release in the next several quarters to position ourselves for the next growth cycle in our industry.”

First Quarter 2024 Summary

• The Company reported revenues of $204.4 million, down 35% from $316.0 million in the prior quarter and down 78% from $943.9 million in the same quarter last year.
• Revenues from the solar segment were $190.1 million, down 33% from $282.4 million in the prior quarter and down 79% from $908.5 million in the same quarter last year.
• GAAP gross margin was negative 12.8%, compared to negative 17.9% in the prior quarter and compared to 31.8% in the same quarter last year.
• Non-GAAP gross margin was negative 6.5%, compared to non-GAAP gross margin of 3.3% in the prior quarter and compared to 32.6% in the same quarter last year.
• Gross margin from the solar segment was negative at 3.5%, compared to 4.0% in the prior quarter and compared to 35.0% in the same quarter last year.
• GAAP operating expenses were $147.5 million, down 19% from $181.2 million in the prior quarter and down 5% from $156.0 million in the same quarter last year.
• Non-GAAP operating expenses were $109.2 million, down 8% from $118.3 million in the prior quarter and down 12% from $123.6 million in the same quarter last year.
• GAAP operating loss was $173.7 million, compared to a GAAP operating loss of $237.6 million in the prior quarter and compared to GAAP operating income of $144.2 million in the same quarter last year.
• Non-GAAP operating loss was $122.5 million, compared to Non-GAAP operating loss of $107.8 million in the prior quarter and compared to Non-GAAP operating income $183.8 million in the same quarter last year.
• GAAP net loss was $157.3 million, compared to a GAAP net loss of $162.4 million in the prior quarter and compared to a GAAP net income of $138.4 million in the same quarter last year.
• Non-GAAP net loss was $108.6 million, compared to a Non-GAAP net loss of $52.5 million in the prior quarter and compared to a Non-GAAP net income of $174.5 million in the same quarter last year.
• GAAP net loss per share was $2.75, compared to a GAAP net loss per share of $2.85 in the prior quarter and compared to a GAAP net diluted earnings per share (“EPS”) of $2.35 in the same quarter last year.
• Non-GAAP net loss per share was $1.90, compared to a Non-GAAP net loss per share of $0.92 in the prior quarter and compared to a Non-GAAP net diluted EPS of $2.90 in the same quarter last year.
• Cash used in operating activities was $217.0 million, compared with $139.9 million used in operating activities in the prior quarter and $7.9 million generated from operating activities in the same quarter last year.
• As of March 31, 2024, cash, cash equivalents, bank deposits, restricted bank deposits, and marketable securities totaled $316.3 million, net of debt, compared to $634.7 million as of December 31, 2023.
• In the first quarter of 2024, the company repurchased 506,000 shares of our common stock under our previously announced share repurchase program approved by the Board of Directors at an average price of $65.67 per share, for a total consideration of approximately $33 million.

Outlook for the Second Quarter 2024

The Company also provides guidance for the second quarter ending June 30, 2024, as follows:

• Revenues are to be within the range of $250 million to $280 million
• Non-GAAP gross margin expected to be within the range of negative 4% to 0%, including approximately 350 basis points of net IRA manufacturing tax credit
• Non-GAAP operating expenses to be within the range of $116 million to $120 million
• Revenues from the solar segment are expected to be within the range of $225 million to $255 million
• Gross margin from the solar segment is expected to be within the range of negative 3% to positive 1% including approximately 420 basis points of net IRA manufacturing tax credit