Israeli solar inverter manufacturer, SolarEdge, has announced impressive Q1 2023 financial results with record revenues and shipments, building on a less profitable Q4. The company's GAAP adjusted revenues totaled US$943.9 million, representing a 44% YoY increase and a 6% increase from the previous quarter. US$908.5 million of the revenue was attributed to the company's solar sector business.
During Q4 2022, GAAP net income was US$20.8 million, while in Q1 2023, it increased more than sixfold to US$138.4 million. This change is largely due to a large ‘non-recurring event' accounting for a 12.9% rise in operating expenses in Q4. Operating expenses in Q4 were US$266.2 million, compared to US$156 million in Q1 23.
The company plans to establish a manufacturing base in the US following incentives provided by the Inflation Reduction Act, but the location has not yet been disclosed.
SolarEdge had record solar sector revenues in Germany, Austria, Switzerland, France, South Africa, and Australia during Q1. Inverter shipments also increased, surpassing 3.6GW, with over 329,000 inverter units supplied to various markets. SolarEdge also shipped 6.4 million power optimisers and 221.2MWh of battery storage, all of which were record numbers.
SolarEdge has also released non-GAAP figures to “give investors a means of evaluating and understanding how SolarEdge's management evaluates the company's operating performance.” Non-GAAP revenues and income were slightly higher, and operating expenses were lower. Non-GAAP net income was US$174.5 million, and total revenues were US$943.7 million.
For Q2, SolarEdge expects revenues to be around US$1 billion, with solar sector revenue alone expected to be between US$930 million and US$980 million. As the US market forms a significant part of SolarEdge's shipments, the company may have to comply with new cybersecurity certifications designed by UL Solutions and NREL for inverter-based technologies.
