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SolarEdge Announces Third Quarter 2024 Financial Results

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SolarEdge Technologies announced its Q3 2024 financial results, reporting revenues of $260.9 million, a 2% decrease from the prior quarter and a 64% drop from the same quarter last year. Revenues from the solar segment were $247.5 million, up 3% from the previous quarter. The company reported a GAAP gross margin of negative 269.2% and a non-GAAP gross margin of negative 265.4%. GAAP operating loss was $1.09 billion, and non-GAAP operating loss was $808.1 million. GAAP net loss stood at $1.21 billion, with a net loss per share of $21.11. Non-GAAP net loss was $874.3 million, with a net loss per share of $15.31. The company undertook an asset valuation analysis, resulting in a write down and impairment of $1.03 billion. For Q4 2024, SolarEdge expects revenues between $180 million and $200 million, with non-GAAP gross margins ranging from negative 4% to 0%.

SolarEdge Technologies ha annunciato i risultati finanziari del terzo trimestre del 2024, riportando entrate di 260,9 milioni di dollari, con una diminuzione del 2% rispetto al trimestre precedente e un calo del 64% rispetto allo stesso trimestre dell'anno scorso. Le entrate dal segmento solare sono state di 247,5 milioni di dollari, in aumento del 3% rispetto al trimestre precedente. L'azienda ha riportato un margine lordo GAAP negativo del 269,2% e un margine lordo non GAAP negativo del 265,4%. La perdita operativa GAAP è stata di 1,09 miliardi di dollari, mentre la perdita operativa non GAAP è stata di 808,1 milioni di dollari. La perdita netta GAAP è stata di 1,21 miliardi di dollari, con una perdita netta per azione di 21,11 dollari. La perdita netta non GAAP è stata di 874,3 milioni di dollari, con una perdita netta per azione di 15,31 dollari. L'azienda ha effettuato un'analisi di valutazione degli attivi, con una svalutazione e una perdita di valore di 1,03 miliardi di dollari. Per il quarto trimestre del 2024, SolarEdge prevede entrate comprese tra 180 milioni e 200 milioni di dollari, con margini lordi non GAAP compresi tra il -4% e lo 0%.

SolarEdge Technologies anunció sus resultados financieros del tercer trimestre de 2024, reportando ingresos de 260,9 millones de dólares, una disminución del 2% con respecto al trimestre anterior y una caída del 64% en comparación con el mismo trimestre del año pasado. Los ingresos del segmento solar fueron de 247,5 millones de dólares, un aumento del 3% respecto al trimestre previo. La compañía reportó un margen bruto GAAP negativo del 269,2% y un margen bruto no GAAP negativo del 265,4%. La pérdida operativa GAAP fue de 1,09 mil millones de dólares, y la pérdida operativa no GAAP fue de 808,1 millones de dólares. La pérdida neta GAAP fue de 1,21 mil millones de dólares, con una pérdida neta por acción de 21,11 dólares. La pérdida neta no GAAP fue de 874,3 millones de dólares, con una pérdida neta por acción de 15,31 dólares. La compañía realizó un análisis de valoración de activos, resultando en una depreciación y deterioro de 1,03 mil millones de dólares. Para el cuarto trimestre de 2024, SolarEdge espera ingresos entre 180 millones y 200 millones de dólares, con márgenes brutos no GAAP que van del -4% al 0%.

SolarEdge Technologies는 2024년 3분기 재무 결과를 발표하며 2억 6,090만 달러의 수익을 보고했습니다. 이는 이전 분기 대비 2% 감소한 수치이며, 작년 같은 분기와 비교하면 64% 하락한 수치입니다. 태양광 부문에서의 수익은 2억 4,750만 달러로 이전 분기보다 3% 증가했습니다. 회사는 GAAP 총 마진이 -269.2%인 것과 비 GAAP 총 마진이 -265.4%라고 보고했습니다. GAAP 운영 손실은 10억 9천만 달러였고 비 GAAP 운영 손실은 8억 1천만 달러였습니다. GAAP 순손실은 12억 1천만 달러로 주당 순손실은 21.11 달러였습니다. 비 GAAP 순손실은 8억 7천만 달러로 주당 순손실은 15.31 달러였습니다. 회사는 자산 가치 평가 분석을 수행하여 10억 3천만 달러의 감액 및 손상액을 기록했습니다. 2024년 4분기, SolarEdge는 1억 8천만 달러에서 2억 달러 사이의 수익을 예상하고 있으며, 비 GAAP 총 마진은 -4%에서 0% 사이에 이를 것으로 보입니다.

SolarEdge Technologies a annoncé ses résultats financiers pour le troisième trimestre de 2024, rapportant des revenus de 260,9 millions de dollars, ce qui représente une diminution de 2% par rapport au trimestre précédent et une baisse de 64% par rapport au même trimestre l'année dernière. Les revenus du secteur solaire étaient de 247,5 millions de dollars, en hausse de 3% par rapport au trimestre précédent. L'entreprise a déclaré un marge brute GAAP négative de 269,2% et un marge brute non-GAAP négative de 265,4%. La perte d'exploitation GAAP était de 1,09 milliard de dollars, et la perte d'exploitation non-GAAP était de 808,1 millions de dollars. La perte nette GAAP s'élevait à 1,21 milliard de dollars, avec une perte nette par action de 21,11 dollars. La perte nette non-GAAP était de 874,3 millions de dollars, avec une perte nette par action de 15,31 dollars. L'entreprise a réalisé une analyse de l'évaluation des actifs, aboutissant à une dépréciation et une amortissement de 1,03 milliard de dollars. Pour le quatrième trimestre de 2024, SolarEdge prévoit des revenus compris entre 180 millions et 200 millions de dollars, avec des marges brutes non-GAAP comprises entre -4% et 0%.

SolarEdge Technologies hat seine Finanzergebnisse für das dritte Quartal 2024 bekannt gegeben und berichtet von Einnahmen in Höhe von 260,9 Millionen Dollar, was einem Rückgang von 2% im Vergleich zum vorherigen Quartal und einem Rückgang von 64% im Vergleich zum selben Quartal des Vorjahres entspricht. Die Einnahmen aus dem Solarsektor betrugen 247,5 Millionen Dollar, was einem Anstieg von 3% im Vergleich zum vorherigen Quartal entspricht. Das Unternehmen berichtete von einer negativen GAAP-Bruttomarge von 269,2% und einer negativen non-GAAP-Bruttomarge von 265,4%. Der GAAP-Betriebsverlust betrug 1,09 Milliarden Dollar, der non-GAAP-Betriebsverlust betrug 808,1 Millionen Dollar. Der GAAP-Nettoverlust betrug 1,21 Milliarden Dollar, mit einem Nettoverlust pro Aktie von 21,11 Dollar. Der non-GAAP-Nettoverlust betrug 874,3 Millionen Dollar, mit einem Nettoverlust pro Aktie von 15,31 Dollar. Das Unternehmen führte eine Analyse zur Bewertung von Vermögenswerten durch, die zu einer Wertminderung und -abschreibung von 1,03 Milliarden Dollar führte. Für das vierte Quartal 2024 erwartet SolarEdge Einnahmen zwischen 180 Millionen und 200 Millionen Dollar, mit non-GAAP-Bruttomargen, die von -4% bis 0% reichen.

Positive
  • Revenues from the solar segment increased by 3% from the prior quarter.
Negative
  • Total revenues decreased by 2% from the prior quarter and 64% from the same quarter last year.
  • GAAP gross margin was negative 269.2%, a significant decline from the prior quarter's negative 4.1%.
  • GAAP operating loss increased to $1.09 billion, up from $160.2 million in the prior quarter.
  • GAAP net loss was $1.21 billion, compared to $130.8 million in the prior quarter.
  • Cash, cash equivalents, and marketable securities decreased to $53.3 million from $165.3 million as of June 30, 2024.
  • Impairment and write downs totaled $1.03 billion.

Insights

This is a deeply concerning earnings report showing severe deterioration in SolarEdge's financial health. The $260.9M revenue represents a dramatic 64% year-over-year decline, while the company posted a staggering $1.21B GAAP net loss. The $1.03B asset impairment and negative gross margins near 270% signal fundamental business challenges.

The Q4 guidance projecting further revenue decline to $180-200M and continued negative margins indicates ongoing market share losses and pricing pressures. With cash reserves dropping to just $53.3M net of debt (down from $165.3M last quarter), liquidity is becoming a serious concern. The massive operating cash burn of $63.9M this quarter is unsustainable given the current cash position.

The solar segment's performance metrics reveal a company losing its competitive edge in a challenging market environment. The 63% year-over-year revenue decline in the core solar business, coupled with negative gross margins of 245.8%, suggests severe inventory management issues and pricing pressures. The sharp reduction in inverter shipments to 850MW indicates significant market share erosion.

The company's strategic pivot to focus on "financial stability, recapturing market share and refocusing on core solar and storage opportunities" acknowledges these challenges but may be too late given the severe financial deterioration. The outlook suggests continued weakness through Q4 2024, with solar segment revenues expected to decline further to $170-190M.

MILPITAS, Calif.--(BUSINESS WIRE)-- 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

 

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

Source: SolarEdge Technologies, Inc.

FAQ

What were SolarEdge's Q3 2024 revenues?

SolarEdge reported Q3 2024 revenues of $260.9 million.

What was SolarEdge's Q3 2024 net loss?

SolarEdge reported a GAAP net loss of $1.21 billion for Q3 2024.

How did SolarEdge's solar segment perform in Q3 2024?

The solar segment reported revenues of $247.5 million, up 3% from the prior quarter.

What guidance did SolarEdge provide for Q4 2024?

SolarEdge expects Q4 2024 revenues between $180 million and $200 million, with non-GAAP gross margins ranging from negative 4% to 0%.

What were SolarEdge's Q3 2024 gross margins?

SolarEdge reported a GAAP gross margin of negative 269.2% and a non-GAAP gross margin of negative 265.4% for Q3 2024.

SolarEdge Technologies, Inc.

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