SolarEdge Announces Third Quarter 2024 Financial Results

SolarEdge Technologies, Inc., a global leader in smart energy technology, 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%
• Non-GAAP gross margin of negative 265.4%
• Gross margin from solar segment of negative 245.8%
• GAAP operating loss of negative $1.09 billion
• Non-GAAP operating loss of $808.1 million
• GAAP net loss of negative $1.21 billion
• Non-GAAP net loss of negative $874.3 million
• GAAP net loss per share of negative $21.1
• Non-GAAP net loss per share of $15.3
• 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 margin 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 expenses 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 loss 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 loss 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 share 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.

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.