Slide 1: Earnings Presentation Q1 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 Q1 2022 May 5, 2022
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: Q1 22 Business Highlights
3 • Strong Q1 financial performance – Revenue grew to $64.5 million above mid-point of guidance • Continued shift of sales outside of China, which grew 25% y-o-y and accounted for 89% of total revenue – Gross margins and Adjusted EBITDA were above the top-end of guidance range • Global manufacturing
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% 29% 41% 40% 40% 40% 43% 40% 38% 36% 46% 33% 32% 33% 38% 40% 35% 28% 41% 31% 28% 25% 27% 19% 11% 11% $22 $25 $26 $29 $30 $35 $37 $37 $42 $52 $51 $46 $42 $48 $44 $43 $43 $52 $62 $66 $61 $69 $72 $67 $6
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% 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% 51% 46% 50% 42% 44% 46% 45% 40% 37% 38% 39% 41% 35% 38% 30% 26% 24% 27% 23% 20% 25% 29% 24% 25% 27
Slide 6: Non-China Industrial Revenue
6 $9 $12 $21 $0 $5 $10 $15 $20 $25 Q120 Q121 Q122 Industrial Revenue | 77% y-o-y growth in non-China Industrial revenue in Q1 ‘22 Non-China Industrial Revenue $ Millions YOY Growth 32% 77% ~ 2x Increase
Slide 7: Financial Update
Financial Update
Slide 8: Summary Financial Results | Revenue and Gross Margin
8 Summary Financial Results | Revenue and Gross Margin Quarterly $ Millions; % of Revenue Q1 2021 Q1 2022 Total Revenue $61.3 $64.5 Products Revenue 47.3 51.1 Development Revenue 14.0 13.4 Gross Margin 28.8% 25.1% Products Margin 35.8% 30.0% Development Margin 5.0% 6.6%
Slide 9: Gross Margin | Product and Development
9 Gross Margin | Product and Development 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% 24% 24% 28% 32% 36% 36% 36% 37% 33% 30% 0% 5% 10% 15% 20% 25% 30% 35% 40% $0 $10 $20 $30 $40 $50 $60 $70 $80 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
Slide 10: Operating Expenses | R&D and SG&A
10 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 11: Summary Financial Results | Profitability and Cash Flow
11 * See Appendix for reconciliation to most directly comparable GAAP measure Summary Financial Results | Profitability and Cash Flow Quarterly $ Millions; % of Revenue Q1 2021 Q1 2022 Net Income (Loss) ($6.1) ($8.6) Non-GAAP Net Income (Loss)* 2.6 (1.6) Net Income (Loss) Per Share (diluted) (0.15)
Slide 12: Strong Balance Sheet and Working Capital Management
12 Strong Balance Sheet and Working Capital Management $49 $51 $53 $55 $59 $63 $71 $74 $77 128 115 105 106 117 113 119 131 141 0 15 30 45 60 75 90 105 120 135 150 $0 $10 $20 $30 $40 $50 $60 $70 $80 $90 Q120 Q320 Q121 Q321 Q122 Inventory ($M) and Days of Inventory (DOI) Inventory DOI $27 $24 $23 $32
Slide 13: Outlook | Q2 2022
13 • Q2 2022 Revenues of $59 million to $67 million; midpoint of $63 million – Laser Products: approximately $48 million at midpoint – Advanced Development: approximately $15 million at midpoint • Q2 2022 Gross Margin of 21% to 25% – Laser Products: 26% to 30% – Advanced Development: approximately 6
Slide 14: Simply brilliant
Vemma Simply brilliant
Slide 15: Appendix
Appendix
Slide 16: Supplemental Information | Revenue and Gross Margin
16 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 Revenue: Products $ 42,467 $ 51,705 $ 51,025 $ 46,162 $ 191,359 $ 41,861 $ 48,048 $ 43,814
Slide 17: GAAP to Non-GAAP Reconciliation | Operating Expenses
17 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 GAAP research and development ("R&D") expense $ 4,283 $ 4,898 $ 5,475 $ 6,398 $ 21,054 $
Slide 18: GAAP to Non-GAAP Reconciliation | Adjusted EBITDA, Net Income and EPS
18 (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 19: Supplemental Information | Key Revenue Metrics
19 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 Revenues by end market Industrial $ 19,
Slide 20: Supplemental Information | Revenue by power level
20 2% 4% 13% 14% 17% 24% 30% 27% 24% 35% 40% 47% 49% 54% 58% 47% 54% 51% 50% 40% 39%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% 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% 0% 10% 20% 30% 40