“We are pleased with our fourth quarter results that conclude a challenging yet very successful year. The global economic and geopolitical events coupled with post pandemic dynamics created an unprecedented demand for solar energy in general and our products in particular,” said Zvi Lando, Chief Executive Officer of SolarEdge. “I am proud that our extraordinary global team of employees was able to overcome the hurdles we faced and conclude a record year in almost every element of our operations. We are excited about the opportunities of the year ahead and expect to continue our profitable growth momentum.”
Fourth Quarter 2022 Summary
The Company reported record revenues of $890.7 million, up 6% from $836.7 million in the prior quarter and up 61% from $551.9 million in the same quarter last year.
Revenues from the solar segment were a record $837.0 million, up 6% from $788.6 million in the prior quarter and up 66% from $502.7 million in the same quarter last year.
GAAP gross margin was 29.3%, up from 26.5% in the prior quarter and up from 29.1% in the same quarter last year.
Non-GAAP gross margin was 30.2%, up from 27.3% in the prior quarter and down from 30.3% in the same quarter last year.
Gross margin from the solar segment was 32.4%, up from 28.3% in the prior quarter and down from 32.8% in the same quarter last year.
GAAP operating expenses were $266.2 million, up 93% from $137.6 million in the prior quarter and up 123% from $119.5 million in the same quarter last year.
Non-GAAP operating expenses were $119.0 million, up 10% from $108.3 million in the prior quarter and up 26% from $94.1 million in the same quarter last year.
GAAP operating loss was $5.2 million, down from operating income of $84.4 million in the prior quarter and down from operating income of $41.0 million in the same quarter last year.
Non-GAAP operating income was a record $149.6 million, up 24% from $120.2 million in the prior quarter and up 105% from $72.9 million in the same quarter last year.
GAAP net income was $20.8 million, down 16% from $24.7 million in the prior quarter and down 49% from $41.0 million in the same quarter last year.
Non-GAAP net income was a record $171.5 million, up 217% from $54.1 million in the prior quarter and up 173% from $62.8 million in the same quarter last year.
GAAP net diluted EPS was $0.36, down from $0.43 in the prior quarter and down from $0.74 in the same quarter last year.
Non-GAAP net diluted EPS was a record $2.86, up from $0.91 in the prior quarter and up from $1.10 in the same quarter last year.
Cash flow from operating activities was $111.3 million, up from $5.6 million in the prior quarter and up from $89.6 million in the same quarter last year.
As of December 31, 2022, cash, cash equivalents, bank deposits, restricted bank deposits and marketable securities totaled $1.04 billion, net of debt, compared to $937.6 million on September 30, 2022.
Full Year 2022 Summary
Total record revenues of $3.11 billion, up 58% from $1.96 billion in the prior year.
GAAP gross margin was 27.2%, down from 32.0% in the prior year.
Non-GAAP gross margin was 28.2%, down from 33.5% in the prior year.
GAAP operating income was $166.1 million, down 20% from $207.1 million in the prior year.
Non-GAAP operating income was a record $441.7 million, up 37% from $321.4 million in the prior year.
GAAP net income was $93.8 million, down 45% from $169.2 million in the prior year.
Non-GAAP net income was a record $351.2 million, up 29% from $272.9 million in the prior year.
GAAP net diluted EPS was $1.65, down from $3.06 in the prior year.
Non-GAAP net diluted EPS was a record $5.95, up from $4.81 in the prior year.
Cash flow from operating activities of $31.3 million, down from $214.1 million in the prior year.
Outlook for the First Quarter 2023
The Company also provides guidance for the first quarter ending March 31, 2023 as follows:
- Revenues to be within the range of $915 million to $945 million
- Non-GAAP gross margin expected to be within the range of 28% to 31%
- Non-GAAP operating profit to be within the range of $150 million to $170 million
- Revenues from the solar segment to be within the range of $875 million to $905 million
- Gross margin from the solar segment expected to be within the range of 31% to 34%
Conference Call
The Company will host a conference call to discuss these results at 4:30 p.m. ET on Monday, February 13, 2023. The call will be available, live, to interested parties by dialing 866-952-8559. For international callers, please dial +1 785-424-1744. 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.
