Slide 1: Earnings Presentation Q3 2022
This presentation contains nLIGHT, Inc. proprietary information. No part of it may be circulated, quoted, or reproduced for distribution without prior written approval from nLIGHT, Inc. Earnings Presentation Q3 2022 November 3, 2022 EXHIBIT 99.2
Slide 2: Forward-looking statements
2 Certain statements in this release are “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995. Words such as “outlook,” “guida
Slide 3: Q3 22 Business Summary
3 • Q3 reflects continued transition of business model – Total revenue of $60.1 million was at the low end of guidance range • Product revenue of $48.0 million • Development revenue of $12.1 million • 91% of revenue from sales outside of China – Gross margins at the low-end of the guidance range wit
Slide 4: Quarterly Revenue – Geography
4 71% 59% 60% 60% 60% 57% 60% 62% 64% 54% 67% 68% 67% 62% 60% 65% 72% 59% 69% 72% 75% 73% 81% 89% 89% 92% 91% $22 $25 $26 $29 $30 $35 $37 $37 $42 $52 $51 $46 $42 $48 $44 $43 $43 $52 $62 $66 $61 $69 $72 $67 $64 $61 $60 $0 $15 $30 $45 $60 $75 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
Slide 5: Quarterly Revenue – By Market
5 19% 19% 17% 20% 18% 14% 14% 16% 18% 13% 20% 21% 22% 19% 26% 30% 39% 29% 42% 44% 40% 35% 38% 42% 36% 37% 34% 28% 35% 33% 38% 38% 40% 42% 44% 45% 49% 41% 38% 43% 44% 43% 43% 37% 43% 35% 36% 35% 36% 37% 33% 37% 36% 37% 51% 46% 50% 42% 44% 46% 45% 40% 37% 38% 39% 41% 35% 38% 30% 26% 24% 27% 23% 20% 25
Slide 6: Financial Update
Financial Update
Slide 7: Summary Financial Results: Revenue and Gross Margin
7 Summary Financial Results | Revenue and Gross Margin Quarterly $ Millions; % of Revenue Q3 2021 Q3 2022 Total Revenue $72.2 $60.1 Products Revenue 54.4 48.0 Development Revenue 17.8 12.1 Gross Margin 29.6% 22.4% Products Margin 37.1% 26.4% Development Margin 6.7% 6.5%
Slide 8: Gross Margin
8 Gross Margin | Product and Development Revenue and Gross Margin – Quarterly $ Millions; % of Revenue 15% 24% 22% 29% 30% 31% 34% 33% 35% 34% 35% 36% 32% 33% 30% 23% 22% 25% 28% 30% 29% 29% 30% 27% 25% 25% 22% 24% 24% 28% 32% 36% 36% 36% 37% 33% 30% 30% 26% 0% 5% 10% 15% 20% 25% 30% 35% 40% $0 $10
Slide 9: Operating Expenses (Non-GAAP)
9 Operating Expenses (Non-GAAP) $ Millions; % of Revenue Note: Excluding stock-based compensation expense, amortization of purchased intangibles and acquisition and integration-related costs. See Appendix for a reconciliation to GAAP operating expenses. Operating Expenses | R&D and SG&A 4.3 4.7 5.0
Slide 10: Summary Financial Results: Profitability and Cash Flow
10 * See Appendix for reconciliation to most directly comparable GAAP measure Summary Financial Results | Profitability and Cash Flow Quarterly $ Millions; % of Revenue Q3 2021 Q3 2022 Net Income (Loss) ($6.9) ($13.0) Non-GAAP Net Income (Loss)* 3.9 (5.1) Net Income (Loss) Per Share (diluted) (0.16)
Slide 11: Strong Balance Sheet and Working Capital Management
11 Strong Balance Sheet and Working Capital Management $53 $55 $59 $63 $71 $74 $77 $80 $81 105 106 117 113 119 131 141 157 158 0 20 40 60 80 100 120 140 160 $0 $10 $20 $30 $40 $50 $60 $70 $80 $90 Q320 Q121 Q321 Q122 Q322 Inventory ($M) and Days of Inventory (DOI) Inventory DOI $23 $32 $32 $37 $36 $4
Slide 12: Outlook | Q4 2022
12 • Q4 2022 Revenues of $53 million to $59 million; midpoint of $56 million – Laser Products: approximately $45 million at midpoint – Advanced Development: approximately $11 million at midpoint • Q4 2022 Gross Margin of 20% to 23% – Laser Products: 23% to 27% – Advanced Development: approximately 4
Slide 13: Simply brilliant
Ve eece ee Simply brilliant
Slide 14: Appendix
Appendix
Slide 15: Supplemental Information: Revenue and Gross Margin
15 Supplemental Information | Revenue and Gross Margin nLight, Inc. 2018 2019 2020 2021 2022 (in thousands, except per share data) Q1 Q2 Q3 Q4 Totals Q1 Q2 Q3 Q4 Totals Q1 Q2 Q3 Q4 Totals Q1 Q2 Q3 Q4 Totals Q1 Q2 Q3 Totals Revenue: Products $ 42,467 $ 51,705 $ 51,025 $ 46,162 $ 191,359 $ 41,861 $ 48
Slide 16: GAAP to Non-GAAP Reconciliation: Operating Expenses
16 GAAP to Non-GAAP Reconciliation | Operating Expenses nLight, Inc. 2018 2019 2020 2021 2022 (in thousands, except per share data) Q1 Q2 Q3 Q4 Totals Q1 Q2 Q3 Q4 Totals Q1 Q2 Q3 Q4 Totals Q1 Q2 Q3 Q4 Totals Q1 Q2 Q3 Totals GAAP research and development ("R&D") expense $ 4,283 $ 4,898 $ 5,475 $ 6,39
Slide 17: GAAP to Non-GAAP Reconciliation: Adjusted EBITDA, Net Income and EPS
17 (1) There is no income tax effect related to the stock-based compensation, acquisition and integration-related costs, and amortization of purchased intangibles adjustments due to the full valuation allowance in the U.S. GAAP to Non-GAAP Reconciliation | Adjusted EBITDA, Net Income and EPS nLight,
Slide 18: Supplemental Information: Key Revenue Metrics
18 Supplemental Information | Key Revenue Metrics Note: Percentages may not total to 100 due to rounding. nLight, Inc. 2018 2019 2020 2021 2022 (in thousands, except per share data) Q1 Q2 Q3 Q4 Totals Q1 Q2 Q3 Q4 Totals Q1 Q2 Q3 Q4 Totals Q1 Q2 Q3 Q4 Totals Q1 Q2 Q3 Totals Revenues by end market Ind
Slide 19: Supplemental Information: Revenue by power level
19 2% 4% 13% 14% 17% 24% 30% 27% 24% 35% 40% 47% 49% 54% 58% 47% 54% 51% 50% 40% 39% 40% 31% 40% 41% 36% 39% 40% 45% 39% 43% 49% 44% 43% 51% 57% 48% 39% 39% 39% 35% 34% 39% 29% 32% 23% 29% 26% 19% 24% 60% 59% 64% 61% 58% 51% 49% 43% 34% 32% 27% 22% 19% 17% 20% 14% 12% 11% 9% 14% 17% 17% 27% 31% 35%