Stratasys, Ltd. · NASDAQ:SSYS
Stratasys — Q2 2022 Earnings Presentation
20 slides from Stratasys's earnings presentation, Aug 3, 2022
Slide 1: Q2 2022 Results
Q2 2022 Results Speakers Dr. Yoav Zeif, CEO Eitan Zamir, CFO Yonah Lloyd, CCO & VP IR Aug. 3, 2022
Slide 2: Conference Call and Webcast Details
Conference Call and Webcast Details US Toll - Free Dial - In 1 - 877 - 407 - 0629 International Dial - In 1 - 412 - 902 - 1012 Live Webcast and Replay https://event.choruscall.com/mediaframe/webcast.html? webcastid=mUfZ38Qo 2
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
Slide 4: Use of 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
Slide 5: Q2 highlights: Welcome Dr. Yoav Zeif, CEO
▪ Q2 revenue of $166.6 million up 13.3% vs. Q2 2021 (16.4% after currency exchange impact) ▪ Systems revenue grew 29% vs. Q2 2021; All printer technologies grew YoY ▪ Balance sheet remains strong at $441.5M in cash and equivalents, with no debt ▪ Laser focus on business execution continues to help u
Slide 6: Production Racing Parts Signal Automotive Opportunity
Production Racing Parts Signal Automotive Opportunity First 3D printed production parts for NASCAR Next Gen Racecars using SAF and FDM technologies TRD partnership includes production parts using SAF and FDM technologies 6
Slide 7: 3D Printing Well-Positioned to Contribute Parts Throughout the Vehicle
3D Printing Well - Positioned to Contribute Parts Throughout the Vehicle at Production Volume 7 Front bumper sensor brackets | Prototype to final part Ducts | Final part inside / Under hood application prototype Electrical wire connectors | Prototype to final part Front grill | Prototype to final pa
Slide 8: J5 DentaJet Momentum Aided by Upgraded Version
J5 DentaJet Momentum Aided by upgraded version ▪ Doubled throughput while maintaining quality ▪ Optimized resin consumption ▪ Reduced support usage and waste ▪ More parts on each print tray ▪ Significant dental lab sales particularly in EMEA I was absolutely blown away by the precision, detail, and
Slide 9: Healthcare Industry Responds to Tailored Stratasys Solutions
Healthcare Industry Responds to Tailored Stratasys Solutions ▪ New unique RadioMatrix material with radiopaque enables 3D printed models to display on X - rays and CT scans ▪ Healthcare providers like the University Hospital of Southern Denmark are moving up from single - material to multi - materia
Slide 10: CFO Remarks
CFO Remarks 10 Eitan Zamir CFO ▪ Building on strong start to 2022 ▪ Systems revenue growth of 29 . 2 % vs . Q 2 2021 is expected to drive future recurring consumables and services revenues ▪ Ongoing operating leverage that reflects the strength of our business model
Slide 11: Improving Financial Results – Q2 2022
Improving Financial Results – Q2 2022 GAAP Non - GAAP Q2 - 21 Q2 - 22 Change Y/Y Q2 - 21 Q2 - 22 Change Y/Y Total Revenue 147.0 166.6 13.3% 147.0 166.6 13.3% Gross Profit 63.3 67.4 4.1 69.9 79.3 9.4 ▪ % Margin 43.0% 40.5% - 2.5% 47.5% 47.6% 0.1% Operating Income (Loss) (22.7) (23.5) (0.8) (2.6) 1.9
Slide 12: Revenue Growth Continues – Q2 2022
Revenue Growth Continues – Q2 2022 Quarterly Trend Revenue Growth – Q2’22 100.3 108.9 118.0 113.1 115.7 46.7 50.1 49.0 50.3 50.9 147.0 159.0 167.0 163.4 166.6 Q2' 21 Q3' 21 Q4' 21 Q1' 22 Q2' 22 Product Service Revenue Y/Y Vs. Q2 2019 Product 15.4% 4.9% ▪ System 29.2% 9.7% ▪ Consumables 3.9% 0.3% Ser
Slide 13: Increasing Gross Margins – Q2 2022
Increasing Gross Margins – Q2 2022 13 GAAP Non - GAAP Non - GAAP margin improvements driven by higher revenues and raised pricing, partially offset by macro issues 43.0% 42.9% 43.7% 40.5% 50.4% 49.7% 49.6% 47.5% 42.6% 47.2% 27.2% 28.2% 29.6% 31.7% 25.2% Q2 '21 Q3 '21 Q4 '21 Q1 '22 Q2 '22 47.5% 48.2%
Slide 14: Controlling Operating Expenses – Q2 2022
Controlling Operating Expenses – Q2 2022 GAAP operating expenses (absolute and as a percentage of revenues) Non - GAAP operating expenses (absolute and as a percentage of revenues) Operating Expenses improvement trend ongoing 86.0 90.9 Q2'21 Q2'22 54.6% - 3.9% 58.5% 72.5 77.4 Q2'21 Q2'22 46.4% - 2.9
Slide 15: Profitable Results – Q2 2022
Profitable Results – Q2 2022 GAAP operating loss Non - GAAP operating (loss) income Operating income and net income reflect business scalability and operational efficiencies GAAP net loss Non - GAAP net (loss) income (22.7) (23.5) Q2'21 Q2'22 (2.6) 1.9 Q2'21 Q2'22 (20.2) (24.4) Q2'21 Q2'22 (1.6) 1.2
Slide 16: Fortified Balance Sheet and Responsible Cash Use – Q2 2022
Fortified Balance Sheet and Responsible Cash Use – Q2 2022 Strong balance sheet at $441.5M cash and equivalents Cash use tied to deliberately increased inventory purchases of over $20M Balance sheet items Cash flow from operating activities 5.6 (22.8) Q2' 21 Q2' 22 Q2 - 21 Q1 - 22 Q2 - 22 Cash and C
Slide 17: 2022 Outlook Updated to Reflect FX Impact
2022 Outlook Updated to Reflect FX Impact 17 Figures include full year contribution from MakerBot until the announced business combination with Ultimaker closes ▪ Full Year 2022 - $675M - $685M ‒ FX impact of ~$10M relatively equal across Q3 & Q4 ‒ H2 2022 appx. 6% - 7% higher than H2 2021 ‒ Q4 grow
Slide 18: CEO Summary
CEO Summary Dr. Yoav Zeif CEO ▪ Business expectations aligned with global macroeconomic conditions ▪ 3D printing is ready to help global manufacturing customers improve their performance ▪ We are positioned to win share at Fortune 500 factory floors and outperform the market 18 18
Slide 19: Thank You
> stratasys Thank You
Slide 20: Appendix
Appendix Note: $ in millions unless noted otherwise. All numbers and percentages rounded Three months ended June 30, 2022 Three months ended June 30, 2021 GAAP Adjustments Non - GAAP GAAP Adjustments Non - GAAP Gross Profit (1) $67,393 $11,914 $79,307 $63,270 $6,616 $69,886 Operating income (Loss) (