Stratasys, Ltd. · NASDAQ:SSYS
Stratasys — Q1 2021 Earnings Presentation
21 slides from Stratasys's earnings presentation, May 5, 2021
Slide 1: First Quarter 2021 Results
First Quarter 2021 Results Speakers Dr. Yoav Zeif - CEO Lilach Payorski - CFO Yonah Lloyd - CCO / VP Investor Relations May Sth, 2021 stratasys stratasys Stratasys
Slide 2: Conference Call & Webcast Details
Conference Call & Webcast Details US Toll-Free dial-in: 1-877-407-0619 International dial-in +1-412-902-1012 Live webcast and replay: https://78449.themediaframe.com/dataconf/productusers/ssys/mediaframe/44880/index! html stratasys stratasys stratasys
Slide 3: Forward-Looking Statements
Forward-Looking Statements 2 Stratasys Cautionary Statement Regarding Forward-Looking Statements The statements in this press release regarding Stratasys’ strategy, and the statements regarding its projected future financial performance, including the financial guidance concerning its expected resul
Slide 4: Use of Non-GAAP Financial Information
Use of Non-GAAP Financial Information $ Stratasys 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 investor
Slide 5: CEO Opening Remarks
WF, CEO Opening Remarks 4§ Stratasys @ Stratasys is at the forefront of polymer 3D printing, with the most innovative technologies for fast-growing manufacturing applications. @ Leading the industry’s transformation to full- scale, digital manufacturing platforms at mass production levels. e Launche
Slide 6: Expanded Software Ecosystem and New Products
Expanded Software Ecosystem e Launched GrabCAD Software Partner Program for enhanced workflow e Released the GrabCAD Connectivity SDK to support Industry 4.0 networking © Added industry standard MTConnect to more systems New J5 DentaJet © Only multi-color, multi- material dental 3D printer Allows te
Slide 7: Stratasys Origin One, H350 and F770
Stratasys Origin One © Best-in-class photopolymer 3D printer © Top-to-bottom optimization upgrade improves serviceability, performance, and utilization © Medical components, automotive, aerospace, defense, consumer goods, and dental applications H350 e Powered by SAF technology e Provides true therm
Slide 8: Full-Package of Solutions to Lead Polymer Additive Manufacturing
Full-Package of Solutions to Lead Polymer Additive Manufacturing % stratasys Delivering innovative, next-generation technologies to address the fastest growing manufacturing applications Broadest technology offering in sector Five best-in-class technologies for every step in the product lifecycle —
Slide 9: Financial Highlights
systems revenues: e Generated $230 m proceeds in capital Financial Highlights
Slide 10: Financial Results — First Quarter 2021
§ stratasys Financial Results — First Quarter 2021 AAP Non-GAAP Change Y/Y Q1-20 Q1-21 Change Y/Y Q1-20 Q1-21 Total Revenue 132.9 134.2 1.0% 132.9 134.2 1.0% Gross Profit 59.9 55.6 (4.3) 64.3 62.6 (1.7) % Margin 45.0% 41.4% 3.6% 48.4% 46.7% -1.7% Operating Income (Loss) (19.9) (18.4) 1.5 (8.4) (2.6)
Slide 11: Revenue Driven by Systems Sales Growth of Nearly 41%
Revenue Driven by Systems Sales Growth of Nearly 41% s Stratasys Quarterly Trend Revenue Growth - Q1’21 142.4 132.9 127.9 134-2 Product 8.6% 6.1% 118 43.2 9 9 443 System 40.9% 37.6% 43.7 Consumables -8.0% -10.2% 99.2 Service -11.8% -13.0% 73.9 Bees Customer Support -2.2% -4.3% Q1'20 Q2' 20 Q3' 20 Q4
Slide 12: Gross Margins Challenged by Near-Term Headwinds
Gross Margins Challenged by Near-Term Headwinds in Consumables, Rising Logistics Costs and SDM Contribution § stratasys GAAP Non-GAAP 55.0% 57.9% 58.7% 54.9% 55.4% 52.9% 9 49.5% Oe ae GbE 46.7% aa 30.6% 32.4% 32.7% a4. 9 28.5% 28.7% Q1'20 Q2'20 Q3 '20 Q4' 20 Qt’ 21 Q1'20 Q2'20 Q3 '20 Q4' 20 Qi'21 =@
Slide 13: Operating Expenses Improvement Trend Ongoing
Operating Expenses Improvement Trend Ongoing $ Stratasys GAAP Operating expenses -7.3% _ Q1'20 qQt'21 Note: $ in millions unless noted otherwise. All numbers and percentages rounded. Non-GAAP Operating expenses -10.3% Qt1'20 Qt'21
Slide 14: Operating Income and Net Earnings Improvement
Operating Income and Net Earnings Improvement GAAP Operating Loss (19.9) (18.4) Q1'20 Qt'21 GAAP Net Loss (21.7) (18.9) Q1'20 Q1'21 Note: $ in millions unless noted otherwise. All numbers and percentages rounded. § stratasys Non-GAAP Operating Loss Q1'20 Ql21 Non-GAAP Net Loss Q1'20 Qti21
Slide 15: Balance Sheet Strengthened to $530m Cash and Equivalents
Balance Sheet Strengthened to $530m Cash and Equivalents § stratasys Generated $22.8m Operating Cash / $230m Gross Proceeds Capital Raise Balance Sheet Items Q1-20 Q4-20 Q1-21 ass a Cash Equivalents and Short-term 325.5 299.1 530.4 Accounts Receivable 115.1 106.1 102.8 Inventories 1725 131.7 124.2 N
Slide 16: 2021 Outlook Reiterated
2021 Outlook Reiterated $ Stratasys e@ Revenue in the second quarter 2021 is expected to grow mid-teens percent compared to second quarter 2020. Revenue in the second half is expected to grow sequentially. © Operating expenses for 2021 are expected to be $25M to $30M higher than 2020, likely closer
Slide 17: CEO Summary
CEO Summary e Executing on our strategy to expand our leadership in polymer additive manufacturing. @ Strengthened balance sheet to support growth opportunities. e New hardware and software technologies to support ongoing commitment to growth and value creation. LT
Slide 18: Thank You: Q&A
Thank You: Q&A
Slide 19: Appendix
Appendix
Slide 20: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation $ Stratasys Results of operations Stratasys Ltd Three months ended March 31, 2021 Three months ended March 31, 2020 GAAP Adjustments Non-GAAP GAAP ‘Adjustments Non-GAAP Gross Profit (1) $55,577 $7,069 $62,646 $59,870 $4,414 $64,284 Operating income (Loss) (1,2) (18,35
Slide 21: Slide 21