Israel-headquartered smart energy technology company SolarEdge’s yearly net income in 2022 dropped by 45%, despite the total revenue increasing by 58% year-on-year.
In its financial results announcement, SolarEdge said its GAAP net income in 2022 decreased to US$93.8 million, down 45% from US$169.2 million in the prior year. Its GAAP net diluted earnings per share (EPS) was US$1.65, down from US$3.06 in 2021.
The company’s revenue increased by 58% year-on-year to a record of US$3.11 billion, up from US$1.96 billion in 2021. The increase was partly contributed by the solar segment, as its revenue reached US$2.92 billion, equivalent to a yearly increase of 63%.
The GAAP gross margin in 2022 was 27.2%, down 4.8 percentage points from 32% in 2021. Additionally, the gross margin from the solar segment was 29.8%.
A total of 10.5GW of inverters and 889MWh of batteries were shipped last year.
SolarEdge CEO Zvi Lando described 2022 as “challenging yet very successful” due to the “unprecedented demand for solar energy in general” and its products created by global economic and geopolitical events, as well as post pandemic dynamics.
The company also announced its Q4 results in the same statement. Its GAAP net income was US$20.8 million, down 16% from US$24.7 million in Q3 2022 and 49% from US$41.0 million in the same quarter last year. Despite the drop, SolarEdge reported its record revenue in Q4 of US$890.7 million, up 6% from US$836.7 million in Q3 2022 and up 61% from US$551.9 million in Q4 last year.
The GAAP net diluted EPS in Q4 2022 was US$0.36, decreasing from US$0.43 in the prior quarter and US$0.74 in the same quarter last year.
The solar segment also performed well in Q4 last year, as it reached US$837.0 million, increasing by 6% from US$788.6 million in Q3 and 66% from US$502.7 million in the same quarter last year. Gross margin from the solar segment was 32.4%, up 4.1 percentage points from 28.3% in Q3 but down from 32.8% in the same quarter last year.
Looking ahead, SolarEdge also predicted that revenue in Q1 2023 will be within the range of US$915 million to US$945 million, breaking the record of Q4 2022, while revenue from the solar segment will from US$875 million to US$905 million.
The gross margin from the solar segment is expected to be within the range of 31% to 34%.