Stratasys, Ltd. · NASDAQ:SSYS
Stratasys — Q2 2018 Earnings Presentation
19 slides from Stratasys's earnings presentation, Aug 1, 2018
Slide 1: Q2 2018 Financial Results Conference Call
» 4 STRATASYS Q2 2018 FINANCIAL RESULTS CONFERENCE CALL August 1, 2018 —
Slide 2: Conference and webcast details
Q2 2018 Conference and webcast details stratasys Live Dial-in Speakers Information Elan Jaglom 4 ; Primary Dial-in: reer GES, 866-394-5776 David Reis Vice-Chairman Lilach Payorski CFO Yonah Lloyd VP, Investor Relations International Dial- in: 409-350-3596 Participant Passcode: 7497765 Live webcast a
Slide 3: Forward Looking Statement
Forward Looking Statement The statements in this presentation regarding Stratasys' strategy, and the statements regarding its projected future financial performance, including the financial guidance concerning its expected results for 2018, are forward-looking statements reflecting management's curr
Slide 4: Use of Non-GAAP Financial Information
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 in gauging
Slide 5: Elan Jaglom — Interim CEO: Opening Remarks
Elan Jaglom — Interim CEO Opening Remarks > Pleased with second quarter results > Observing recovery in high-end system orders and return to typical ordering behavior in key verticals in North America > Consumables and services showed improved growth compared to prior periods
Slide 6: Lilach Payorski - CFO: Financial Update
Lilach Payorski - CFO Financial Update
Slide 7: Financial Results
Financial Results Stratasys, Ltd. Non-caae YN % a Change YOY Change YOY Fetal Revenue si7ag) $1702 axw| si7oo] $1702 01% -> [ross Pont (Loss) wa) 036 os] 202) 8a] oa) Revenue DY: \% margin 49.1% 49.1% 0.3% 53.0%| 52.5%] (09%) [Operating Prof Loss) a) cE eT (03) 5 oe Ssmargin ow) ism) tem) 65%] 62x)
Slide 8: Financial Results - Revenue
Financial Results —- Revenue Stratasys, Ltd. Total Revenue - Quarterly Trend @Product = Service YY % 130 21 a Product Revenue J 2% ine 108 ‘System Revenue J 8% Consumable Revenue 1 5% 2 a so 50 8 Service Revenue 1 6% Customer support 1 10% a2'37 9317 Qa'37 aus 218
Slide 9: Financial Results — Gross Margin Trends
Financial Results — Gross Margin Trends Stratasys, Ltd. 49.1% Q2'18 a2'18 Product Gross Margin @ Service Gross Margin @ 1
Slide 10: Financial Results — Operating Expenses & Operating Income
Financial Results — Operating Expenses & Operating Income (loss) Stratasys, Ltd. GAAP YoY % 38.3%: bicides 37.2% 37.1% 36.4% GAAP Operating Exp. i | 3% R&D Exp. 1 2% SG&A Exp || 5% Non-GAAP Operating Exp. Ce AU R&D Exp. 1 5%. SG&A Exp J 3% 218 @ FED Expenses (hotrevenve @ sceAcxpenses (hofrvne) —_ @
Slide 11: Financial Results — Balance Sheet Summary & CF from operations
Financial Results — Balance Sheet Summary & CF from operations Stratasys, Ltd. sa ur ff 1198 1235 1 = | = § $106 13.0 16.2 [s40.1
Slide 12: Lilach Payorski - CFO: Financial Summary
Lilach Payorski - CFO Financial Summary > Revenue results show early recovery after first quarter lag in high-end system sales in North America > Pleased with recurring revenue — demonstrates strength of installed base of systems > Committed to continued investment for long-term growth and expansion
Slide 13: Update on CEO Search
Elan Jaglom — Interim CEO UPDATE ON CEO SEARCH
Slide 14: CEO Search Update
CEO Search Update Oversite Committee David Reis - Vice Scott Crump Dov Ofer Chairman of the Director, previously Director, former Board, Executive Chairman of Board, CEO in printing Director and former [aay NX and Stratasys industry CEO # founder Executive Search Committee Elan Jaglom Victor Leventh
Slide 15: David Reis — Update on 2nd Quarter
David Reis — Vice Chairman UPDATE ON ZND QUARTER
Slide 16: Increasing Commitment to AM From Key Customers & Verticals
Increasing Commitment to AM From Key Customers & Verticals Aero, Auto, and Government had strong quarter + Early recovery visible as typical ordering patterns resumed + High-end production solutions drove Q2 results New Production-Focused Products Met With Strong Demand + F900 Pro and F900 Aircraft
Slide 17: Revenue & Earnings Guidance
Revenue & Earnings Guidance Revenue (M) Reconciliation of GAAP to Non-GAAP Guidance (Sia mons exceptpershare ts) $670 - $700 =e aS GAAP Net Loss ($41) 10 ($25) GAAP Diluted EPS (a) Stock-Based Compensation Expense $1710 $19 (2) Intangible Assets Amortization Expense $3210 $34 $(0.75) - $(0.46) Gunmm
Slide 18: We Are A Global Leader in Applied Additive Technology Solutions
WE ARE A GLOBAL LEADER IN APPLIED ADDI TECHNOLOGY SOLUTIONS ;
Slide 19: Reconciliation of GAAP to Non-GAAP - Results of Operations
Reconciliation of GAAP to Non-GAAP - Results of Operations Stratasys Ltd. Three Months Ended June 20, 2018 faar OT acstments Non GAAP | (goa bam a $5.047 $5,708 520.385 Operating ineors ASS 220) 12538 10018 et note an atouatiew Semin Del TES) (ass iets 002 inom (oss) per died shar abate w Siatass is