Israel headquartered solar PV inverter supplier SolarEdge Technologies, Inc saw its GAAP revenues surge 52% YoY to $727.8 million in Q2/2022 led by solar, and growing demand for clean energy, majorly from Europe and the US markets, however its net income went down 67% to $15.1 million.
To the group revenues, the solar segment contributed $687.6 million, registering a growth of 59% from last year and 13% from the previous quarter (see SolarEdge's Q1/2022 Financial Results). The US contributed 45% of the solar revenues, and Europe 47%.
'Strong commercial and community solar momentum' in the US was cited by the management as the reason for this market bringing in revenues, while there was 12% QoQ increase in residential inverter MWs shipped to the country. In Europe, where it claims to have hit record shipments of both commercial and residential inverters, Germany and Italy were most notable.
Momentum is building up in other markets as well namely Brazil, Australia, South Africa and India. The shipment rates are increasing but the company said its 'channel inventory remains low due to the very high rate of installations'. Lockdown in Shanghai impacted its shipments of power optimizers and inverters during the reporting quarter, and also impacted its opening inventory for Q3/2022. SolarEdge plans to expedite shipments to deal with the delay.
Overall, it shipped 1.2 GW capacity to Europe, 936 MW to the US, and 357 MW to rest of the world.
"While we continue to face growing supply chain challenges, some related to our rapid growth in an environment of component shortages, and macro-economic trends as a result of our global footprint, we continue to support our customers while building the infrastructure for sustainable growth," said SolarEdge CEO Zvi Lando.
The management has guided for group revenues in Q3/2022 to range between $810 million to $840 million, with the solar segment contributing $765 million to $795 million. Non-GAAP gross margin for the group is forecast within the range of 26% to 29%, and that for solar as 27% to 30%.
Recently SolarEdge was accused of patent infringement by US based Ampt over power optimizer technology (see Patent Lawsuit Against SolarEdge Technologies).