SolarEdge swings to Q1 net loss as revenue plunges

SolarEdge headquarters. Source: SolarEdge Technologies

Israel-based photovoltaic (PV) inverters and batteries supplier SolarEdge Technologies Inc (NASDAQ:SEDG) swung to a first-quarter net loss of USD 157.3 million (EUR 145.9m) as revenues slumped by 78% in annual terms.

The results were in line with expectations of inventory clearing and typical seasonality, the company said on Thursday. In the year-ago period, SolarEdge registered a net profit of USD 138.4 million.

CEO Zvi Lando explained that channel inventory is expected to drop further as installation activity normally rises in spring and lead to an improvement in revenues. “[..] we are focused on a suite of new products that we plan to release in the next several quarters to position ourselves for the next growth cycle in our industry,” he added.

At USD 204.4 million, revenues in January-March contracted both sequentially and in annual terms. Revenues from the solar segment came at USD 190.1 million, marking a 79% drop year-on-year.

Amounts in USD	Q1 2024	Q1 2023
Revenues	204.4m	943.9m
GAAP operating profit (loss)	(173.7m)	144.2m
GAAP gross margin (loss)	(12.8%)	31.8%
GAAP operating expenses	147.5m	156m
GAAP net profit (loss)	(157.3m)	138.4m
Non-GAAP net profit (loss)	(108.6m)	174.5m

Shipments of solar inverters and batteries for photovoltaic applications stood at 946 MW and 128 MWh, respectively.

Looking ahead, SolarEdge guided for second-quarter revenues of between USD 250 million and USD 280 million, with a contribution of USD 225 million-255 million from the solar segment. Non-GAAP gross margin is expected to be between a negative 4% and 0% and Non-GAAP operating expenses are seen at USD 116 million-120 million.

(USD 1.0 = EUR 0.927)

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