SolarEdge Announces Second Quarter 2022 Financial Results

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SolarEdge Technologies, Inc. (Nasdaq: SEDG), a global leader in smart energy technology, today announced its financial results for the second quarter ended June 30, 2022.

Second Quarter 2022 Highlights

  • Record revenues of $727.8 million
  • Record revenues from solar segment of $687.6 million
  • GAAP gross margin of 25.1%
  • Non-GAAP gross margin of 26.7%
  • Gross margin from solar segment of 28.1%
  • GAAP net income of $15.1 million
  • Non-GAAP net income of $56.7 million
  • GAAP net diluted earnings per share (“EPS”) of $0.26
  • Non-GAAP net diluted EPS of $0.95
  • 2.52 Gigawatts (AC) of inverters shipped

“The growing demand for energy in general and clean energy in particular continued to drive top line growth this quarter resulting in record revenues in Europe and the United States,” said Zvi Lando, Chief Executive Officer of SolarEdge. “While we continue to face growing supply chain challenges, some related to our rapid growth in an environment of component shortages, and macro-economic trends as a result of our global footprint, we continue to support our customers while building the infrastructure for sustainable growth.”

Second Quarter 2022 Summary

The Company reported record revenues of $727.8 million, up 11% from $655.1 million in the prior quarter and up 52% from $480.1 million in the same quarter last year.

Revenues from the solar segment were record $687.6 million, up 13% from $608.0 million in the prior quarter and up 59% from $431.5 million in the same quarter last year.

GAAP gross margin was 25.1%, down from 27.3% in the prior quarter and down from 32.5% in the same quarter last year.

Non-GAAP gross margin was 26.7%, down from 28.4% in the prior quarter and down from 33.9% in the same quarter last year.

Gross margin from the solar segment was 28.1%, down from 30.2% in the prior quarter and down from 37.4% in the same quarter last year.

GAAP operating expenses were $146.6 million, up 14% from $128.1 million in the prior quarter and up 46% from $100.6 million in the same quarter last year.

Non-GAAP operating expenses were $109.6 million, up 11% from $98.9 million in the prior quarter and up 35% from $81.5 million in the same quarter last year.

GAAP operating income was $36.0 million, down 29% from $50.9 million in the prior quarter and down 35% from $55.6 million in the same quarter last year.

Non-GAAP operating income was $84.7 million, down 3% from $87.2 million in the prior quarter and up 4% from $81.3 million in the same quarter last year.

GAAP net income was $15.1 million, down 54% from $33.1 million in the prior quarter and down 67% from $45.1 million in the same quarter last year.

Non-GAAP net income was $56.7 million, down 18% from $68.8 million in the prior quarter and down 22% from $72.5 million in the same quarter last year.

GAAP net diluted EPS was $0.26, down from $0.60 in the prior quarter and down from $0.82 in the same quarter last year.

Non-GAAP net diluted EPS was $0.95, down from $1.20 in the prior quarter and down from $1.28 in the same quarter last year.

Cash flow generated from operating activities was $77.4 million, compared with $163.0 million used in operating activities in the prior quarter and $38.7 million generated from operating activities in the same quarter last year.

As of June 30, 2022, cash, cash equivalents, bank deposits, restricted bank deposits and marketable securities totaled $973.3 million, net of debt, compared to $979.0 million on March 31, 2022.

Outlook for the Third Quarter 2022

The Company also provides guidance for the third quarter ending September 30, 2022 as follows:

  • Revenues to be within the range of $810 million to $840 million
  • Non-GAAP gross margin expected to be within the range of 26% to 29%
  • Non-GAAP operating profit to be within the range of $90 million to $110 million
  • Revenues from solar segment to be within the range of $765 million to $795 million
  • Gross margin from solar segment expected to be within the range of 27% to 30%