SolarEdge(SEDG) - 2024 Q4 - Annual Results

Financial Performance - The company reported Q4 2024 revenues of $196.2 million, a decrease of 17% from $235.4 million in the prior quarter[3] - Revenues from the solar segment were $189.0 million, down 15% from $222.1 million in the prior quarter[4] - Full year 2024 total revenues were $901.5 million, down from $2.98 billion in the prior year[16] - Revenues for Q4 2024 were $196,217,000, 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 $1,806,357 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 $287.4 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 $1.17 billion for the full year 2024[18] - Gross loss for Q4 2024 was $112,254,000 compared to a gross loss of $56,425,000 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 $162,383,000 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 $1.09 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 $136.7 million in the prior year[15] - As of December 31, 2024, total cash and equivalents were $81.8 million, up from $51.3 million as of September 30, 2024[15] - Cash and cash equivalents decreased to $274,611,000 in Q4 2024 from $338,468,000 in Q4 2023, a decline of about 19%[44] - Cash flows used in operating activities amounted to $313,319 for 2024, an increase from $180,113 in 2023[46] - Cash and cash equivalents at the end of the period increased to $409,939 in 2024 from $338,468 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) in the previous quarter[59] Operating Expenses - Total operating expenses for Q4 2024 were $151,413,000, down from $181,156,000 in Q4 2023, reflecting a reduction of about 16%[42] - Research and development expenses for Q4 2024 were $62,238,000, down from $75,001,000 in Q4 2023, a reduction of about 17%[42] - Operating expenses (GAAP) totaled $831,084 for the year ended December 31, 2024, compared to $663,618 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 $195 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 $1,299 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 $2.52 million in the previous quarter[51] - Restructuring charges for the three months ended December 31, 2024, were $3,770 thousand, compared to $2,515 thousand in the previous quarter[54] Assets and Liabilities - Total current assets decreased to $2,034,307,000 in Q4 2024 from $3,304,306,000 in Q4 2023, representing a drop of approximately 38%[44] - Total liabilities increased to $1,971,853,000 in Q4 2024 from $2,175,822,000 in Q4 2023, indicating a rise of about 9%[44] - Total stockholders' equity decreased significantly to $658,342,000 in Q4 2024 from $2,411,909,000 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 $296,429 in 2023[46] Stock-Based Compensation - Stock-based compensation expenses were $137,251 for the year ended December 31, 2024, slightly down from $149,945 in 2023[46] - The company reported stock-based compensation of $24.43 million for the three months ended December 31, 2024, down from $36.64 million in the previous quarter[51] - Stock-based compensation for the three months ended December 31, 2024, totaled $137,251 thousand, down from $149,945 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]