SolarEdge Technologies, Inc.

Welcome to the SolarEdge conference call for the third quarter ended September 30th, 2022. This call is being webcast live on the company's website at www.solaredge.com and the investors section on the event calendar page. This call is the sole property and copyright of Solar Edge. With all rights reserved and any recording, reproduction, or transmission of this call without the express written consent of Solar Edge is prohibited. You may listen to a webcast replay of this call by visiting the event calendar page of the Solar Edge Investor website. I would now like to turn the call over to to Erica Mannion at Sapphire Investor Relations, Investor Relations for SolarEdge.

Good afternoon. Thank you for joining us to discuss SolarEdge's operating results for the third quarter ended September 30, 2022, as well as the company's outlook for the fourth quarter of 2022. With me today are C.V. Lando, Chief Executive Officer, and Ronan Fire, Chief Financial Officer. CV will begin with a brief review of the results for the third quarter ended September 30, 2022. Ronan will review the financial results for the third quarter, followed by the company's outlook for the fourth quarter of 2022. We will then open the call for questions. Please note that this call will include forward-looking statements that involve risks and uncertainties that could cause actual results to differ materially from management's current expectations. We encourage you to review the Safe Harbor statements contained in our press release and the slides published today for a more complete description. All material contained in this webcast is a sole property and copyright of SolarEdge Technologies with all rights reserved. Please note this presentation describes certain non-GAAP measures including non-GAAP net income and non-GAAP net diluted earnings per share, which are not measures prepared in accordance with U.S. GAAP. The non-GAAP measures are presented in this presentation as we believe that they provide investors with a means of evaluating and understanding how the company's management evaluates the company's operating performance. These non-GAAP measures should not be considered in isolation from, as substitutes for, or superior to financial measures prepared in accordance with U.S. GAAP. Listeners who do not have a copy of the quarter-ended September 30, 2022 press release or the supplemental material are may obtain a copy by visiting the investor section of the company's website. Now, I will turn the call over to Stevie.

Thank you, Erica. Good afternoon, and thank you all for joining us on our conference call today. This quarter, we saw record revenues for the company, led by record revenues from our global solar business, driven from significant growth in Europe. In aggregate, we shipped this quarter a record 2.7 gigawatts of our DC optimized inverter solution and 321 megawatt hour of residential batteries. This quarter we shipped 6.1 million optimizers and 265,000 inverters representing quarter over quarter growth of 16%. We're happy with this increased output from our factories following the COVID related challenges we experienced in the first half of the year in Vietnam and China. However, the demand for our products still outpaces our production and supply chain capacity. We are working hard to close this gap through the further ramp of production in our New Mexico facility and capacity increases in other locations. On this note, in light of the recent IRA legislation and the increased demand from the U.S. market, we are aiming to establish manufacturing capability in the United States within 2023 and are in active planning and site selection process. Our revenue growth this quarter is mostly driven by strong momentum in Europe, where revenues grew by 42% from last quarter and by 90% compared to the same quarter last year. In particular, growth was strong in the largest European market of Germany, where revenue grew by 125% quarter over quarter, and in the Netherlands, France, and the UK, all with record quarterly revenues. We expect the strong momentum in Europe to continue into 2023 and are seeing an elevated level of new orders coming from our channels to prepare and support this continued growth. In the third quarter, we prioritized shipments to Europe in light of the challenging winter expected there. This quarter, revenues in the U.S. were lower than the previous quarter, as given the constrained capacity environment, we prioritized the supply to the European residential market, as mentioned earlier. In the U.S. commercial segment, however, this was a record quarter of inverter and optimizer shipments, with an increase of 10 percent from the last quarter. This is the fourth consecutive quarter of double-digit growth in our commercial megawatt shipments to the U.S. reflecting the market momentum and our position in this market. We expect this growth dynamic in the United States commercial market to continue into 2023. Outside of Europe and the United States, we also had record quarterly shipments in Taiwan and South Africa, and good momentum and quarter-over-quarter growth in Australia. From a segment perspective, this was a record quarter for megawatt shift in both residential and commercial, as well as megawatt hours of battery shipments. In the commercial segment, which grew 12% quarter over quarter in megawatt shift, we are seeing growth of installations in an increasing number of diverse applications, such as floating PV, where we commissioned this quarter several large projects in Israel and Taiwan, and the agro or agricultural PV application aimed at dual use of land for solar generation and growth of crops. We are engaged in several such projects in Europe and Asia and see this as a potential high-growth application for the future. Overall, our demand globally continues to be strong. Point-of-sale data from our distribution channels are at record levels and growing month over month, And our focus is to increase factory output to meet the demand efficiently and with less need for expedited shipments in order to continue the margin improvement we have seen this quarter. Shifting to products. Our battery shipments grew this quarter in line with our plan and reached a record 321 megawatt hours, driven primarily by our shipment of the three-phase battery that we announced last quarter. This demand is coming primarily from Germany and other three-phase European countries, spurred by the increase in energy prices and the growing demand for backup and independence from the grid. For our single-phase battery, we are seeing good demand from Australia, South Africa, and the UK, countering slower-than-projected growth of battery attach rates this quarter in the United States. That said, in this quarter, The amount of our single-phase batteries in the United States that were installed and connected to our monitoring portal was double that of the previous quarter. On the optimizer side, we recently announced the release of our new SenseConnect technology that detects temperature increase at the connector level to prevent potential electric arcs. By detecting and reacting to abnormal connector overheating that may happen due to faulty installations or connectors, our SenseConnect technology stops power flow before an arc can occur. With module-level site visibility, operation and maintenance providers are informed of the pinpointed location of the connector, so repairs can be conducted swiftly and easily. This helps maximize system safety, uptime, and reduces operational costs. The Sense Connect technology is an addition to our wide range of safety features, among them the Safety C technology and rapid shutdown. Additionally, this quarter, we announced the release of our SolarEdge Home Load Controller. This is a wireless device that is designed to optimize energy consumption by controlling heavy load home appliances. The load controller is easy to install, enabling remote and automatic control of home appliances such as heat pumps, EV chargers, pool and well pumps, HVAC, and others. This technology enables homeowners to increase their self-consumption by using excess energy that would otherwise be lost and extend their battery backup time during grid outages. Once installed, the load controller seamlessly integrates with our My SolarEdge app, enabling homeowners to control loads directly from their smartphone. For homeowners, this means that they can now schedule and track their solar energy production, battery storage level, grid services if they have connectivity, and solar self-consumption. The SolarEdge Home Operating System calculates energy usage and savings according to personal preferences while considering external factors such as weather events and utility rates. Also this quarter in grid services, we joined the Rocky Mountain Power Watts Smart Program, making us one of the two battery suppliers selected thus far for this program. The program provides customers in Utah and Idaho who enroll with a SolarEdge home battery, a significant enrollment incentive, and an additional monthly incentives. We are already seeing positive interest among existing SolarEdge battery owners and new potential installations. Together with this program, we have to date more than 20,000 systems under various grid services and data programs globally. In this context, Our financial results this quarter reflect a capital gain from a sale of shares from an investment we made about 18 months ago in a grid services company that materialized. Moving to our non-solar business. In South Korea, the ramp of our Sella 2 factory is on schedule, and we began mass production and are shipping sales to customers in small quantities this quarter. Our e-mobility revenues are at a steady but reduced rate, much in line with the overall automotive industry supply chain-related instability. And with this, I hand it over to Ronen, who will review our financial results.