Stratasys, Ltd. · NASDAQ:SSYS
Stratasys — Q3 2018 Earnings Presentation
20 slides from Stratasys's earnings presentation, Nov 1, 2018
Slide 1: Q3 2018 Financial Results Conference Call
S STRATASYS Q3 2018 Financial Results Conference Call November 1, 2018 2s stratasys
Slide 2: Q3 2018 Conference Call and Webcast Details
Q3 2018 Conference Call and Webcast Details : Speakers + Elan Jaglom — Interim CEO * ‘David Reis — Vice-Chairman’ + Lilach Payorski- CFO + Yonah Lloyd — VP, Investor Relations Live webcast and rep: ’ https://edge.medi: rv r-com/m6/pla8omzkp4 Live Dial-in Information Primary Dial-in: +1-866-394-5776
Slide 3: Forward Looking Statement
Stratasys Forward Looking Statement ‘The statements in this presentation regarding Stratasys' strategy, and the statements regarding its projected future financial performance, including the financial guidance conceming as expected results for 20%, ae forward-looking Statements reflecting management
Slide 4: Use of Non-GAAP Financial Information
Stratasys Use of Non-GAAP Financial Information ‘The non-GAAP data that appears below, 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 shareholders of our company
Slide 5: Opening Remarks
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Slide 6: Financial Update
Slide 7: Financial Results
Stratasys: Financial Results Change YY f Revenue 4% ‘® GAAP Gross Profit 5% 4t GAAP Operating Income 149% Non-GAAP Gross Profit 3% ‘f Non-GAAP Operating Income 1% Total Revenue 1559 1620 4.0% 1559 1620 40% Gross Profit 752 789 37149% 818 845 26/32% % Margin 48.3% 48.7% 52.5% 52.1% ‘Operating Income
Slide 8: Financial Results: Revenue Quarterly Trend
Stratasys Product Revenue 1% 4 System Revenue 0% Financial Results Revenue Een ® Service Revenue 10% ‘Customer Support 7% Total Revenue - Quarterly Trend 179.3 170.2 155.9 49.6 153.8 ue 162.0 50.0 i 52.4 eos 118.4 103.9 BB Product IB service
Slide 9: Financial Results — Gross Margin Trends
Stratasys: Financial Results — Gross Margin Trends GAAP Non-GAAP 54.0% 53.8% 56.5% 55.0% 55.6% 59.6% 58.8% Gtr 59.6% 60.6% 48.3% 48.7% 49.2% 49.1% 48.7% 52.5% 52.5% 52.8% 52.5% 62.1% 35.1% 35.2% 34.0% 36.7% 342% 36.3% 35.9% 34.4% 36.2% aaa% Q3 17 Q47 Q118 Q218 Q3 18 Q3 17 Q417 Q118 Q2 18 Q3 18 Il Pr
Slide 10: Financial Results — Operating Expense and Margin
10 Financial Results — Operating Expense and Margin Operating Margin as47 as47 ais | a24s = as 18 76% a 6.2% 5.2% 5.0% g Q3 ‘17 Q3 ‘18 21% 3.2% Fences 14.0% Attems 15.9% Sansom BB.7 Yo SRS 30.7% 4 GAAP Operating Expense 8% 4 Non-GAAP Operating Expense 3% 4 GAAP R&D Expense 18% § GAAP SGBA Expense 17
Slide 11: Financial Results — Balance Sheet Summary & Cash Flow From Operations
Stratasys Financial Results — Balance Sheet Summary & Cash Flow From Operations Cash Flow From Cash and Cash Equivalents 328.8 346.7 348.9 . a wee Accounts Receivable, net 132.7 123.5 129.5 Operating Activities Inventories 115.7 117.0 118.1 } 5.0 | Net Working Capital 451.6 453.1 483.9 (3 in million
Slide 12: Lilach Payorski, CFO: Key Takeaways
+ + 4+ Lilach: : Payorski + ga ee CFO. + + 4 tot ot t+ t+ t+ tt + + + + 4+ + + + + + + + + 4 ++ 4 + & tt + F + 4+ t+ + fF + + + + FOG t+ oF ot + Ft + HF FF HF + HF FT + ot FF FH FHF FH FT t+ oF Ff FH HH HF FH HF HE ee a ote ts oe er ate flect continued recovery in high-end system sales ++ Pleasell w
Slide 13: Update on CEO Search
UPDATE ON 7>EO SEARCH AA \ fom ¥ (Elan Jaglom — Interim CEO
Slide 14: Update on CEO Search
“ Update on CEO Search Executive Search Committee i) ad Elan Jaglom Victor Leventhal Chairman of Chairman of Board and Compensation Interim CEO Committee Stratasys Candidates Being Interviewed: v Strong leaders v Global backgrounds v Operational experience
Slide 15: Q3 Update
Q3 UPDATE David Reis — Vice Chairman
Slide 16: Manufacturing Customer Commitment Increasing
16 Stratasys Manufacturing Customer Commitment Increasing Siemens Mobility - AM Adoption April 2017 - Siemens Mobility begins providing rail industry with 3D printed parts Sept 2018 — Siemens Mobility announced its first digital rail maintenance center ~the Siemens Mobility RRX Rail Service Center i
Slide 17: Stratasys Direct Manufacturing (SDM)
ad Stratasys Stratasys Direct Manufacturing (SDM) Improved performance driven by: + SDM benefiting from organizational changes H —now under North American sales + Beginning to realize cross-selling synergies Parts sell printers #» Printers sell parts + Strong growth in manufacturing orders + Increas
Slide 18: Revenue & Earnings Guidance
B Stratasys Revenue & Earnings Guidance Revenue (M) $670 - $680 GAAP Diluted EPS $(0.19) - $(0.04) Non-GAAP Diluted EPS $0.50 - $0.55 Reconciliation of GAAP to Non-GAAP Guidance (Gin millions, except per share data) Revenue $670 to $680 GAAP Net Loss (610) to ($2) (1) Stock-Based Compensation Expens
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Slide 20: Reconciliation of GAAP to Non-GAAP - Results of Operations
Stratasys Reconciliation of GAAP to Non-GAAP - Results of Operations Stratasys Ltd. [Sess Promt a $78,028 35.545 364.473 $75,230 ‘36.508, 381,837 perating income (Lass) (12) 3.360 4815 3.105 (0.873) 14.983 3.080, ietincome (Loss) atributable fo Stataays Lid (7.2.3) (672) 6.383, 5.704 (10.187) 14.200