SolarEdge posts higher Q1 profit amid growing PV inverter sales

SolarEdge headquarters. Source: SolarEdge Technologies

Israel-based inverter supplier SolarEdge Technologies Inc (NASDAQ:SEDG) booked a 10% year-on-year rise in first-quarter GAAP net profit, helped by strong demand for its products that resulted in record-high revenues.

The company closed the January-March quarter with a bottom line result of USD 33.1 million (EUR 31m), which improved both sequentially and in annual terms. SolarEdge’s financial report showed on Monday that the increase was mostly fuelled by revenues gained from its solar segment, which was responsible for the bulk of the all-time high of USD 655.1 million.

Revenues jumped by 62% on the year and 19% as compared to the previous quarter, with solar inverter shipments standing at 2.13 GW. More details are given in the table below:

Amounts in USD	Q1 2022	Q1 2021
Revenues	655.1m	405.5,
-- from solar segment	608m	376.4m
GAAP gross margin (%)	27.3%	34.5%
Non-GAAP gross margin (%)	28.4%	36.5%
GAAP operating income	50.9m	44.1m
Non-GAAP operating income	87.2m	71.9m
GAAP net income	33.1m	30.1m
Non-GAAP net income	68.8m	55.5m

“We continue to demonstrate our operational capabilities by navigating the current supply chain environment to meet strong worldwide demand for our products, and continuing to build long-term manufacturing capacity to support our growing businesses,” said CEO Zvi Lando.

At the end of March, SolarEdge has USD 979 million in cash, cash equivalents, bank deposits, restricted bank deposit and marketable securities, net of debt, versus USD 548 million at the end of December 2021.

Looking ahead, the Israeli firm expects to post revenues of between USD 710 million and USD 740 million in the second quarter, with the solar segment projected to bring USD 660 million-690 million. The gross margin from the solar segment is forecast to be within the 28%-31% range.

(USD 1.0 = EUR 0.937)

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