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SolarEdge Technologies Inc (SEDG) Q4 2024 Earnings Call Highlights: Navigating Challenges with ...

In This Article:

  • Total Revenue: $196.2 million for Q4 2024.

  • Solar Segment Revenue: $189 million.

  • US Solar Revenue: $114 million, representing 60% of solar revenues.

  • European Solar Revenue: $44.8 million, representing 24% of solar revenues.

  • International Solar Revenue: $30.3 million, representing 16% of solar revenues.

  • Total Megawatt Shipments: 895 megawatts.

  • Battery Shipments: 130-megawatt hours, primarily to Europe.

  • ASP per Watt (excluding batteries): $20.8, up 2% from Q3.

  • Blended ASP per kWh on PV Attached Batteries: $262, down from $317 in Q3.

  • Non-Solar Business Revenue: $6.9 million.

  • GAAP Gross Margin: Negative 57.2% for Q4.

  • Non-GAAP Gross Margin: 39.5% for Q4.

  • Non-GAAP Operating Expenses: $106.8 million for Q4.

  • GAAP Net Loss: $287.4 million for Q4.

  • Non-GAAP Net Loss: $202.5 million for Q4.

  • Net Loss per Share: $5 for Q4.

  • Non-GAAP Net Loss per Share: $3.52 for Q4.

  • Free Cash Flow: $26 million for Q4.

  • Cash and Equivalents: Approximately $767 million as of December 31, 2024.

  • Inventory Level: $645.9 million, net of reserves.

  • Q1 2025 Revenue Guidance: $195 million to $215 million.

  • Q1 2025 Non-GAAP Gross Margin Guidance: 6% to 10%.

  • Q1 2025 Non-GAAP Operating Expenses Guidance: $98 million to $103 million.

Release Date: February 19, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

  • SolarEdge Technologies Inc (NASDAQ:SEDG) generated approximately $26 million in free cash flow in Q4 2024, exceeding forecasts.

  • The company is ramping up US manufacturing, creating nearly 2,000 jobs and increasing production capacity for inverters and optimizers.

  • SolarEdge Technologies Inc (NASDAQ:SEDG) is focusing on innovation with the introduction of new products like the SolarEdge ONE Controller and the Nexus residential portfolio.

  • The company has strengthened its financial position by selling 45X advanced manufacturing production credits, enhancing liquidity.

  • SolarEdge Technologies Inc (NASDAQ:SEDG) is implementing cost-saving measures, including headcount reductions and focusing on core projects, to improve operational efficiency.

Negative Points

  • SolarEdge Technologies Inc (NASDAQ:SEDG) reported disappointing financial results in recent quarters, with a GAAP net loss of $287.4 million in Q4 2024.

  • The company faced a $115 million inventory write-down due to weaker-than-expected recovery in the European market.

  • There is uncertainty in the US market due to potential policy changes, impacting sales and market conditions.

  • SolarEdge Technologies Inc (NASDAQ:SEDG) had to revise previously reported revenues and loans receivables, impacting financial statements.

  • The European market remains challenged with macroeconomic headwinds, and the company expects a slight market decline in 2025.