Stratasys, Ltd. · NASDAQ:SSYS
Stratasys — Q1 2024 Earnings Presentation
18 slides from Stratasys's earnings presentation, May 29, 2024
Slide 1: Q1 2024 Results
Q1 2024 Results Speakers Dr. Yoav Zeif, CEO Eitan Zamir, CFO Yonah Lloyd, CCO & VP IR May 29, 2024 Make additive work for you
Slide 2: Conference Call and Webcast Details
Conference Call and Webcast Details US Toll-Free Dial-In 1-877-407-0619 International Dial-In +1-412-902-1012 Live Webcast and Replay https://event.choruscall.com/mediaframe/ webcast.html?webcastid=H13Rjkjs Make additive work for you
Slide 3: Forward-Looking Statements
Forward-Looking Statements Cautionary Statement Regarding Forward- Looking Statements The statements in this slide presentation regarding Stratasys' strategy, and the statements regarding its projected future financial performance, including the financial guidance concerning its expected results for
Slide 4: Use of Non-GAAP Financial Information
Use of Non-GAAP Financial Information Use of Non-GAAP Financial Measures The non-GAAP data included herein, which excludes certain items as described below, are non-GAAP financial measures. Our management believes that these non-GAAP financial measures are useful information for investors and shareh
Slide 5: Dr. Yoav Zeif, CEO
Dr. Yoav Zeif CEO ▪ Revenue flat relative to Q1 2023 after backing out divestitures ▪ Improved Gross Margins of 48.6% vs. 47.3% in Q1 2023 ▪ Highest-ever Consumables recurring revenue reflects strong usage, demonstrates impact of revenue stream ▪ Generated $7M+ in operating cash flow + FCF positive
Slide 6: Industrial Manufacturing Systems Update – F3300 and H350
Industrial Manufacturing Systems Update – F3300 and H350 F3300 establishes a new FDM standard for industrial MFG with up to 2X throughput of standard FDM H350 launched v.1.5 Strong customer pipeline New SAF HighDef printing Toyota - first customer capabilities provides BAE Systems – Europe’s largest
Slide 7: Recent Events – New COO / Second Sustainability Report
Recent Events – New COO / Second Sustainability Report FBFFFFFFÏB FBFFFFFFÏB Promotion of our new COO, Published 2nd ESG and Amir Kleiner – 12+ years at Sustainability report Stratasys Sustainability is at the Will lead Global Operations, heart of what 3D Printing MIS, and Quality team, while can me
Slide 8: Eitan Zamir, CFO
Eitan Zamir CFO ▪ Encouraged by multiple improvements relative to Q1 2023 ▪ Despite relatively flat revenues, gross margins improved, thanks in part to another record- level in sales of our consumables ▪ Generated over $7 million in operating cash and over $4 million in free cash flow Make additive
Slide 9: Financial Results
Financial Results GAAP Non-GAAP Q1-23 Q1-24 Change Y/Y Q1-23 Q1-24 Change Y/Y Total Revenue 149.4 144.1 -3.5% 149.4 144.1 -3.5% Gross Profit 65.4 63.9 (1.5) 70.7 70.0 (0.7) ▪% Margin 43.8% 44.4% 0.6% 47.3% 48.6% 1.3% Operating Income (Loss) (16.8) (24.5) (7.7) 1.5 (1.2) (2.7) ▪% Margin -11.2% -17.0%
Slide 10: Revenues – Record Consumables Sales
Revenues – Record Consumables Sales Quarterly Trend Revenues – Q1’24 Product Service Revenue Y/Y Y/Y Adjusted* 159.8 162.1 156.3 149.4 144.1 Product - $99.2M -1.8% -0.9% 50.7 48.9 45.9 48.4 ▪ Systems - $32.9M -18.7% -17.8% 44.9 ▪ Consumables - $66.3M 9.6% 10.3% 109.1 113.2 110.4 Services - $44.9M -7
Slide 11: Gross Margins
Gross Margins Gross margins expected to further improve with revenue growth GAAP Non-GAAP Product Gross Margin Total Gross Margin Service Gross Margin 55.5% 53.8% 52.5% 52.6% 52.3% 49.4% 49.8% 48.6% 47.2% 47.4% 47.2% 47.3% 48.5% 48.3% 48.8% 43.8% 44.4% 41.5% 44.7% 40.5% 40.4% 39.8% 38.4% 38.4% 32.1%
Slide 12: Operating Expenses
Operating Expenses GAAP Non-GAAP operating expenses operating expenses (absolute and as a percentage of revenues) (absolute and as a percentage of revenues) 55.0% 61.3% 46.3% 49.5% 82.2 88.4 69.2 71.2 Q1'23 Q1'24 Q1'23 Q1'24 Note: $ in millions unless noted otherwise. All numbers and percentages rou
Slide 13: Earnings
Earnings Non-GAAP operating income (loss) GAAP operating loss (1.0% in Q1’23 vs (0.8)% in Q1’24 out of total revenue) (16.8) 1.5 (24.5) (1.2) Q1’23 Q1’24 Q1’23 Q1’24 Non-GAAP EBITDA GAAP net loss (4.7% in Q1’23 vs 2.9% in Q1’24 out of total revenue) 7.0 4.1 (22.2) (26.0) Q1’23 Q1’24 Q1’23 Q1’24 Non-
Slide 14: Balance Sheet and Positive Operating Cash Flow
Balance Sheet and Positive Operating Cash Flow Balance sheet items Cash flow from operating activities Q1-23 Q4-23 Q1-24 Cash and Cash Equivalents and Short-term deposits 287.6 162.6 161.1 7.3 Accounts Receivable 144.5 172.0 155.3 (17.9) (75.4) (62.3) Inventories 202.0 193.0 195.1 Net Working Capita
Slide 15: 2024 Outlook Reiterated
2024 Outlook Reiterated $630M-$645M 49.0%-49.5% $292M-$297M Revenue Non-GAAP Operating Compare to ~$616M 2023 revenue excluding Gross Margins divestitures and annualizing Covestro Expenses 2.5%-3.5% $0.12-$0.19 $40M-$45M $20M-$25M EPS-diluted-adjusted Non-GAAP Operating ($1.24)-($1.01) EBITDA-adjust
Slide 16: Summary
Dr. Yoav Zeif CEO Summary ▪ Solid quarter in a challenging environment ▪ Past systems sales strength flows through to record consumables ▪ Heavy utilization will drive replacement by higher performance, more advanced systems ▪ Investments in innovation will meet customer needs and drive growth when
Slide 17: Thank You
THANK YOU. Make additive work for you
Slide 18: Appendix
Appendix Three months ended March 31, 2024 Three months ended March 31, 2023 GAAP Adjustments Non-GAAP GAAP Adjustments Non-GAAP Gross Profit (1) $ 63,897 $ 6,139 $ 70,036 $ 65,395 $ 5,299 $ 70,694 Operating income (Loss) (1,2) (24,453) 23,254 (1,199) (16,797) 18,315 1,518 Net income (Loss) (1,2,3)