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SolarEdge(SEDG) - 2024 Q4 - Annual Results
SEDGSolarEdge(SEDG)2025-02-19 12:11

Financial Performance - The company reported Q4 2024 revenues of 196.2million,adecreaseof17196.2 million, a decrease of 17% from 235.4 million in the prior quarter[3] - Revenues from the solar segment were 189.0million,down15189.0 million, down 15% from 222.1 million in the prior quarter[4] - Full year 2024 total revenues were 901.5million,downfrom901.5 million, down from 2.98 billion in the prior year[16] - Revenues for Q4 2024 were 196,217,000,adecreasefrom196,217,000, a decrease from 316,044,000 in Q4 2023, representing a decline of approximately 38%[42] - Net income for the year ended December 31, 2024, was a loss of 1,806,357comparedtoaprofitof1,806,357 compared to a profit of 34,329 in 2023[46] - The company reported a gross margin (loss) of (97.3)% for 2024, down from 23.6% in 2023[48] - The company reported a gross margin (loss) of (39.4)% (Non-GAAP) for 2024, compared to 28.2% in 2023[48] Losses and Impairments - GAAP net loss for Q4 2024 was 287.4million,comparedtoanetlossof287.4 million, compared to a net loss of 1.231 billion in the prior quarter[11] - The company reported a total write down and impairment of 1.17billionforthefullyear2024[18]−GrosslossforQ42024was1.17 billion for the full year 2024[18] - Gross loss for Q4 2024 was 112,254,000 compared to a gross loss of 56,425,000inQ42023,indicatingaworseningingrossmarginperformance[42]−NetlossforQ42024was56,425,000 in Q4 2023, indicating a worsening in gross margin performance[42] - Net loss for Q4 2024 was 287,439,000, compared to a net loss of 162,383,000inQ42023,markinganincreaseinlossesofapproximately77162,383,000 in Q4 2023, marking an increase in losses of approximately 77%[42] - The company reported a loss from equity investments of 456.00 million for the year ended December 31, 2024[52] - The company experienced unrealized losses related to currency fluctuations amounting to 1.09millionforthethreemonthsendedDecember31,2024[51]CashFlowandLiquidity−FreecashflowgeneratedinQ42024was1.09 million for the three months ended December 31, 2024[51] Cash Flow and Liquidity - Free cash flow generated in Q4 2024 was 25.5 million, compared to a deficit of 136.7millionintheprioryear[15]−AsofDecember31,2024,totalcashandequivalentswere136.7 million in the prior year[15] - As of December 31, 2024, total cash and equivalents were 81.8 million, up from 51.3millionasofSeptember30,2024[15]−Cashandcashequivalentsdecreasedto51.3 million as of September 30, 2024[15] - Cash and cash equivalents decreased to 274,611,000 in Q4 2024 from 338,468,000inQ42023,adeclineofabout19338,468,000 in Q4 2023, a decline of about 19%[44] - Cash flows used in operating activities amounted to 313,319 for 2024, an increase from 180,113in2023[46]−Cashandcashequivalentsattheendoftheperiodincreasedto180,113 in 2023[46] - Cash and cash equivalents at the end of the period increased to 409,939 in 2024 from 338,468in2023[46]−Thecompanyreportedanetcashprovidedbyoperatingactivities(GAAP)of338,468 in 2023[46] - The company reported a net cash provided by operating activities (GAAP) of 37,804 for the three months ended December 31, 2024, a recovery from (89,332)inthepreviousquarter[59]OperatingExpenses−TotaloperatingexpensesforQ42024were(89,332) in the previous quarter[59] Operating Expenses - Total operating expenses for Q4 2024 were 151,413,000, down from 181,156,000inQ42023,reflectingareductionofabout16181,156,000 in Q4 2023, reflecting a reduction of about 16%[42] - Research and development expenses for Q4 2024 were 62,238,000, down from 75,001,000inQ42023,areductionofabout1775,001,000 in Q4 2023, a reduction of about 17%[42] - Operating expenses (GAAP) totaled 831,084 for the year ended December 31, 2024, compared to 663,618in2023[48]−Operatingexpenseswererecordedat663,618 in 2023[48] - Operating expenses were recorded at 1,116.28 million, which is a 5% increase compared to the previous year[49] Future Guidance and Strategy - The company expects Q1 2025 revenues to be in the range of 195millionto195 million to 215 million[28] - Future guidance projects a revenue growth of 15% for the next quarter, driven by new product launches[49] - The company plans to expand its market presence in Asia, targeting a 20% increase in market share by the end of the fiscal year[49] - The company expects continued focus on restructuring and cost management strategies moving forward[56] - The company indicated a future outlook with a focus on improving operational efficiency and reducing costs in response to the current financial challenges[58] Restructuring and Charges - A restructuring charge of 1,299millionwasnoted,aimedatoptimizingoperationalcosts[49]−Thecompanyincurredrestructuringchargesof1,299 million was noted, aimed at optimizing operational costs[49] - The company incurred restructuring charges of 3.77 million for the three months ended December 31, 2024, compared to 2.52millioninthepreviousquarter[51]−RestructuringchargesforthethreemonthsendedDecember31,2024,were2.52 million in the previous quarter[51] - Restructuring charges for the three months ended December 31, 2024, were 3,770 thousand, compared to 2,515thousandinthepreviousquarter[54]AssetsandLiabilities−Totalcurrentassetsdecreasedto2,515 thousand in the previous quarter[54] Assets and Liabilities - Total current assets decreased to 2,034,307,000 in Q4 2024 from 3,304,306,000inQ42023,representingadropofapproximately383,304,306,000 in Q4 2023, representing a drop of approximately 38%[44] - Total liabilities increased to 1,971,853,000 in Q4 2024 from 2,175,822,000inQ42023,indicatingariseofabout92,175,822,000 in Q4 2023, indicating a rise of about 9%[44] - Total stockholders' equity decreased significantly to 658,342,000 in Q4 2024 from 2,411,909,000inQ42023,adeclineofapproximately732,411,909,000 in Q4 2023, a decline of approximately 73%[44] - The company experienced a significant increase in trade receivables, netting 451,707 in 2024 compared to 296,429in2023[46]Stock−BasedCompensation−Stock−basedcompensationexpenseswere296,429 in 2023[46] Stock-Based Compensation - Stock-based compensation expenses were 137,251 for the year ended December 31, 2024, slightly down from 149,945in2023[46]−Thecompanyreportedstock−basedcompensationof149,945 in 2023[46] - The company reported stock-based compensation of 24.43 million for the three months ended December 31, 2024, down from 36.64millioninthepreviousquarter[51]−Stock−basedcompensationforthethreemonthsendedDecember31,2024,totaled36.64 million in the previous quarter[51] - Stock-based compensation for the three months ended December 31, 2024, totaled 137,251 thousand, down from 149,945thousandinthepreviousyear[54]−Stock−basedcompensationforthethreemonthsendedDecember31,2024,was149,945 thousand in the previous year[54] - Stock-based compensation for the three months ended December 31, 2024, was 0.42 per share, down from $0.62 in the same period of 2023[58]