SolarEdge(SEDG)2024-11-06 21:08Revenue Performance - Revenues for Q3 2024 were $260.9 million, down 2% from the prior quarter and down 64% from the same quarter last year[3] - Solar segment revenues were $247.5 million, up 3% from the prior quarter but down 63% from the same quarter last year[3] - Revenues for the three months ended September 30, 2024, were $260.9 million, a significant decrease compared to $725.3 million in the same period in 2023[21] - Q4 2024 revenue guidance is between $180 million and $200 million, with solar segment revenues expected to be between $170 million and $190 million[11] Gross Margin and Profitability - GAAP gross margin was negative 269.2%, compared to negative 4.1% in the prior quarter and 19.7% in the same quarter last year[3] - Non-GAAP gross margin was negative 265.4%, compared to 0.2% in the prior quarter and 20.8% in the same quarter last year[4] - Gross loss for the three months ended September 30, 2024, was $702.3 million, compared to a gross profit of $142.8 million in the same period in 2023[21] - Gross profit (GAAP) for December 31, 2021, was $(702,326) thousand, with a gross margin (GAAP) of (269.2)%[32] - Non-GAAP gross profit for December 31, 2021, was $(691,809) thousand, with a non-GAAP gross margin of (265.4)%[33] Operating Loss and Expenses - GAAP operating loss was $1.09 billion, compared to a loss of $160.2 million in the prior quarter and $16.7 million in the same quarter last year[5] - Non-GAAP operating loss was $808.1 million, compared to a loss of $114.3 million in the prior quarter and income of $23.1 million in the same quarter last year[6] - Operating income (loss) (GAAP) for September 30, 2024 was $(1,085,266) thousand, compared to $(160,182) thousand for June 30, 2024[37] - Operating expenses (GAAP) for December 31, 2021, were $382,940 thousand[35] - Non-GAAP operating expenses for December 31, 2021, were $116,282 thousand[36] Net Loss and Earnings Per Share - GAAP net loss was $1.21 billion, compared to a loss of $130.8 million in the prior quarter and $61.2 million in the same quarter last year[7] - Non-GAAP net loss was $874.3 million, compared to a loss of $101.2 million in the prior quarter and $31.0 million in the same quarter last year[7] - Net loss for the three months ended September 30, 2024, was $1.205 billion, compared to a net loss of $61.2 million in the same period in 2023[21] - Net income (loss) (GAAP) for September 30, 2024 was $(1,205,321) thousand, a significant decline compared to $(130,818) thousand in June 2024 and $(157,311) thousand in March 2024[39] - Net basic earnings (loss) per share (GAAP) for September 30, 2024 was $(21.13), compared to $(2.31) in June 2024 and $(2.75) in March 2024[41] - Net basic earnings (loss) per share (Non-GAAP) for September 30, 2024 was $(15.33), compared to $(1.79) in June 2024 and $(1.90) in March 2024[41] - Net diluted earnings (loss) per share (GAAP) for September 30, 2024 was $(21.13), compared to $(2.31) for June 30, 2024 and $(2.75) for March 31, 2024[43] - Net diluted earnings (loss) per share (Non-GAAP) for September 30, 2024 was $(15.33), compared to $(1.79) for June 30, 2024 and $(1.90) for March 31, 2024[44] Inventory and Asset Management - Total current assets decreased to $2.118 billion as of September 30, 2024, from $3.304 billion as of December 31, 2023[22] - Inventories, net decreased to $798.4 million as of September 30, 2024, from $1.443 billion as of December 31, 2023[22] - Provision to write down inventories to net realizable value was $639 million for the nine months ended September 30, 2024, compared to $20.7 million in the same period in 2023[24] - Loss on impairment and disposal of property, plant, and equipment was $206.6 million for the nine months ended September 30, 2024[24] - Assets impairment and disposal by abandonment resulted in a loss of $(232,102) thousand for December 31, 2021[36] - Assets impairment and disposal by abandonment for September 30, 2024 was $232,102 thousand, compared to $1,732 thousand for March 31, 2024[37] Cash Flow and Financial Position - Net cash used in operating activities for the nine months ended September 30, 2024, was $325.7 million, compared to $40.2 million in the same period in 2023[24] - Net cash provided by investing activities for the nine months ended September 30, 2024, was $318.8 million, compared to a net cash used of $188.2 million in the same period in 2023[24] - Cash and cash equivalents decreased to $303.9 million as of September 30, 2024, from $338.5 million as of December 31, 2023[24] - Notes due 2025 for the year ended December 31, 2023 was $2,276,818[45] Stock-Based Compensation and Other Adjustments - Stock-based compensation for December 31, 2021, was $6,039 thousand, contributing 2.3% to the gross margin[33] - Stock-based compensation for September 30, 2024 was $36,642 thousand, compared to $38,571 thousand for June 30, 2024[37] - Stock-based compensation increased to $36,642 thousand in September 2024 from $38,571 thousand in June 2024 and $37,606 thousand in March 2024[39] - Stock-based compensation for September 30, 2024 was $0.64 per share, compared to $0.69 for June 30, 2024 and $0.66 for March 31, 2024[43] - Stock-based compensation for the year ended December 31, 2023 was $725,859, compared to $963,373 for December 31, 2022 and $773,636 for December 31, 2021[45] - Restructuring charges for December 31, 2021, were $1,216 thousand, contributing 0.0% to the gross margin[34] - Restructuring charges and assets impairment totaled $2,515 thousand in September 2024, down from $4,885 thousand in June 2024 and $9,765 thousand in March 2024[39] - Amortization and depreciation of acquired assets for December 31, 2021, were $2,034 thousand, contributing 1.0% to the gross margin[34] - Non-cash interest expense for September 30, 2024 was $3,785 thousand, compared to $3,636 thousand for June 30, 2024[37] - Non-cash interest expense was $3,785 thousand in September 2024, slightly up from $3,636 thousand in June 2024 and $3,536 thousand in March 2024[39] Tax and Other Financial Items - Tax benefits (income taxes) (GAAP) for September 30, 2024 was $(121,108) thousand, compared to $12,245 thousand for June 30, 2024[37] - Income tax adjustment was $44,602 thousand in September 2024, a significant increase from $(357) thousand in June 2024 and $(5,062) thousand in March 2024[39] - Financial income (expense), net (GAAP) for September 30, 2024 was $5,558 thousand, compared to $(865) thousand for June 30, 2024[37] - Other income (loss) (GAAP) for September 30, 2024 was $(3,928) thousand, compared to $18,551 thousand for June 30, 2024[37] - Equity method investments loss (GAAP) for September 30, 2024 was $(577) thousand, compared to $(567) thousand for June 30, 2024[37] - Equity method investments loss (Non-GAAP) for September 30, 2024 was $—, compared to $— for June 30, 2024[38] - Loss from impairment of private held companies was $5,000 thousand in September 2024, with no comparable figures in previous quarters[39] - Currency fluctuation related to lease standard resulted in a loss of $966 thousand in September 2024, compared to a gain of $(1,523) thousand in June 2024 and $(1,276) thousand in March 2024[39] Share Count and Earnings Per Share Calculations - Number of shares used in computing net diluted earnings (loss) per share (GAAP) for September 30, 2024 was 57,029,983, compared to 56,687,006 for June 30, 2024 and 57,140,126 for March 31, 2024[44] - Number of shares used in computing net diluted earnings (loss) per share (Non-GAAP) for September 30, 2024 was 57,029,983, compared to 56,687,006 for June 30, 2024 and 57,140,126 for March 31, 2024[45] Discontinued Operations and Other Items - Discontinued operations contributed $36,648 thousand to the gross profit for December 31, 2021[32] - Revenues from the finance component for December 31, 2021, were $(250) thousand, contributing (0.1)% to the gross margin[32] - Revenues from finance component for September 30, 2024 were $(250) thousand, compared to $(246) thousand for June 30, 2024[37] - Revenues from finance component remained relatively stable, with $(250) thousand in September 2024 compared to $(246) thousand in June 2024 and $(234) thousand in March 2024[39]