Q2 2024 Solaredge Technologies Inc Earnings Call Transcript
Key Points
- SolarEdge Technologies Inc (SEDG) reported a significant increase in sell-through, with a 32% quarter-over-quarter growth in US residential inverters and optimizers, and a 55% increase in battery sell-through.
- The company has made substantial improvements in customer service, product quality, and ease of installation, which have positively impacted customer satisfaction and market share.
- SolarEdge Technologies Inc (SEDG) is seeing strong demand for its new products, including the 330 kilowatt inverter system, trackers, and commercial storage solutions.
- The company has successfully ramped up its US manufacturing capabilities, achieving a target run rate of 500 megawatts for single-phase inverters and beginning shipments of domestically produced optimizers.
- SolarEdge Technologies Inc (SEDG) expects to be cash flow positive in the first half of 2025, driven by inventory clearing and increased demand for its products.
- The company reported a GAAP gross margin of negative 4.1% and a non-GAAP gross margin of 0.2%, indicating ongoing profitability challenges.
- SolarEdge Technologies Inc (SEDG) is facing slower recovery and changing inventory holding behavior in European markets, which is expected to extend the inventory clearing process into early 2025.
- The company has experienced a significant drag on margins due to lower US battery shipments and higher commercial product sales, which typically have lower margins.
- SolarEdge Technologies Inc (SEDG) reported a GAAP net loss of $130.8 million for the second quarter, reflecting ongoing financial difficulties.
- The company is anticipating a continued cash burn in the third quarter, with free cash flow expected to be negative in the range of $70 to $90 million.
Hello, and welcome to the SolarEdge conference call for the second-quarter ended June 30, 2024. This call is being webcast live on the company's website at www.solaredge in the investors section on the Events Calendar page. This call is the sole property and copyright of SolarEdge with all rights reserved and any recording, reproduction, or transmission of this call without the expressed written consent of SolarEdge is prohibited. And you may listen to a webcast replay of this call by visiting the event calendar page of the Solaredge investor website.
I would now like to turn the call over to J.B. Lowe, Head of Investor Relations for SolarEdge. Please begin.
Thank you, Jess. And good afternoon, everyone. Thank you for joining us to discuss SolarEdge is operating results for the second quarter ended June 30, 2024, as well as the company's outlook for the third quarter of 2024. With me today are Zvi Lando, Chief Executive Officer; and Ronen Faier, Chief Financial Officer.
Zvi will
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