SolarEdge revenue hits new Q3 record but growth to slow in Q4

Share on facebook
Facebook
Share on twitter
Twitter
Share on linkedin
LinkedIn
Share on reddit
Reddit
Share on email
Email
SolarEdge Technologies continued its streak of record quarterly revenues in the third quarter of 2019. However, fourth quarter revenue growth is expected to slow compared to previous quarters. Image: SolarEdge

Major PV inverter company, SolarEdge Technologies continued its streak of record quarterly revenues in the third quarter of 2019. However, fourth quarter revenue growth is expected to slow compared to previous quarters. 

SolarEdge reported record revenue of US$410.6 million, up 26% from US$325.0 million in the previous quarter and up 74% from US$236.6 million in the prior year period.

SolarEdge reported record revenue of US$410.6 million, up 26% from US$325.0 million in the previous quarter and up 74% from US$236.6 million in the prior year period.

The company reported specific revenue related to its solar business reached US$387.8 million, up 26% from US$306.7 million in the previous quarter and up 66% from US$233.8 million in the prior year period.

Total PV inverter shipments in the third quarter of 2019, reached almost 1.5GW (AC), compared to over 1.3GW (AC) in the previous quarter.

Total PV inverter shipments in the third quarter of 2019, reached almost 1.5GW (AC), compared to over 1.3GW (AC) in the previous quarter.

Total inverter unit shipments in the third quarter of 2019, jumped again as manufacturing constraints continued to ease, although air shipments, due to strong demand continued to impact the company. In the third quarter, unit shipments were almost 188,000, while second quarter inverter unit shipments had jumped to 160,000, up from 131,000 in the first quarter. 

Total inverter unit shipments in the third quarter of 2019, jumped again as manufacturing constraints continued to ease, although air shipments, due to strong demand continued to impact the company.

SolarEdge reported power optimizer unit shipments of over 4.5 million in the third quarter, compared to over 3.7 million power optimizers in the second quarter of 2019. Not surprisingly a new record for the company. 

SolarEdge reported power optimizer unit shipments of over 4.5 million in the third quarter, compared to over 3.7 million power optimizers in the second quarter of 2019.

GAAP gross margin was 33.9% in the third quarter of 2019, down from 34.1% in the prior quarter and up from 33.0% in the prior year period. Gross margin was said to be negatively impacted by increased air shipments as well as the increase in US tariffs on China made products.

GAAP gross margin was 33.9% in the third quarter of 2019, down from 34.1% in the prior quarter.

“Our performance this quarter was at the upper range of our guidance, with record revenues, record non-GAAP profitability and record cash generation,” said Zvi Lando, Acting CEO and VP Global Sales of SolarEdge. “While we are pleased with the financial and operational results, this was a somber quarter for the Company due to the untimely passing of Mr. Guy Sella, Founder, Chairman and CEO of SolarEdge. Guy was not only our CEO and Chairman but a technological visionary, a role model and dear friend and will be greatly missed. SolarEdge management, most of whom have been leading the company together with Guy for many years, are dedicated to continue to strive for excellence in innovation and execution. We believe we are well positioned for continued growth both in our core business as leaders of PV inverter technology and in our new businesses of lithium-ion cells and batteries, e-mobility powertrain solutions and uninterruptible power supply systems.”

However, management acknowledged that it had experienced higher than expected product failure rates in the quarter with new production ramps at new manufacturing plants for single phase and three phase inverters. However, such failure rates were said to have significantly declined as manufacturing maturity increased. 

Guidance

Although the company has yet to provide 2020 financial guidance, management noted in the earnings call that it still expected historical growth patterns that would be in the range of 15 to 20% annual revenue growth rates. 

SolarEdge did guide fourth quarter 2019 revenue to be in the range of US$410 million to US$420 million, only slightly higher that the third quarter. 

Gross margin is expected to be within the range of 32% to 34%, indicating further margin pressure, which could be related to continued air shipments and increased capacity expansions to meet demand. 

Revenue from solar products in the fourth quarter of 2019, is expected to be in the range of US$388 million to US$398 million.

Read Next

August 3, 2021
PV inverter manufacturer SolarEdge Technologies posted record quarterly revenues in Q2, thanks in part to a strong performance in Europe.
July 28, 2021
Solar and storage provider Sunnova, SolarEdge Technologies and National Grid have partnered on a grid stability project in New England, US
PV Tech Premium
May 4, 2021
Major PV inverter manufacturer SolarEdge Technologies has guided a return to overall business growth in 2021, due primarily to strong market demand in Europe and the US as well as the rollout of its residential energy storage product.
PV Tech Premium
March 2, 2021
With three years of financial and business data available, we can start to analyse a number of possible trends, one of these is the changing landscape surrounding Sunnova's supplier base for PV modules, inverters and energy storage.
February 17, 2021
Major PV inverter manufacturer SolarEdge Technologies reported year-on-year revenue growth of just 2.4% in 2020, compared to growth rates of over 50% per annum in recent years.
November 3, 2020
SolarEdge witnessed record revenues in Europe as sales in North America stagnated in Q3, with the effects of the COVID-19 pandemic still clear and present in the company’s financials.

Subscribe to Newsletter

Upcoming Events

Solar Media Events
October 6, 2021
Solar Media Events
October 19, 2021
BRISTOL, UK
Solar Media Events
December 1, 2021