Slide 1: Q3 2023 Results
Q3 2023 Results Speakers Dr. Yoav Zeif, CEO Eitan Zamir, CFO Yonah Lloyd, CCO & VP IR November 16, 2023
Slide 2: Conference Call and Webcast Details
Conference Call and Webcast Details US Toll-Free Dial-In 1-877-407-0619 International Dial-In 1-412-902-1012 Live Webcast and Replay https://event.choruscall.com/mediaframe/webcast.htm l?webcastid=bSk6aoYV 2 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 for
Slide 4: Use of Non-GAAP 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 and shareh
Slide 5: Dr. Yoav Zeif, CEO remarks
Dr. Yoav Zeif CEO ▪ Fully operational during the situation in Israel and proud of our employee’s dedication and spirit ▪ Appointed seasoned executive Aris Kekedjian to our board of directors; Thanking Ziva Patir for her commitment and contributions over 10 years of service ▪ Delivered record-high re
Slide 6: Introducing New F3300 Platform for Manufacturing
Introducing New F3300 Platform for Manufacturing ▪ F3300 launched at Formnext – the first in our new FDM enterprise platform is custom built for manufacturing ▪ Significant advancements in speed, reliability and operating efficiency to bring greater economic advantage to existing new applications ▪
Slide 7: Industrial Customer Successes: Defense and Automotive
Industrial Customer Successes: Defense and Automotive US Army Picatinny Arsenal FAW, China’s largest wholly- Stratafest event featured bought printers from all five owned auto manufacturer, customer testimonials from of our technologies for use installed a variety of Northrop Grumman and across mult
Slide 8: Dental Growth Continues / Key Healthcare Partnerships
Dental Growth Continues / Key Healthcare Partnerships Strengthening Foundation for Scale Partnerships Drive New Opportunities ▪ Customers scaling up with multiple unit orders and ▪ Encee Medical in Germany to deliver Stratasys expansion of their portfolios for both Ortho and healthcare solutions - s
Slide 9: Software and Materials Business Expansion
Software and Materials Business Expansion Monetizing GrabCAD Print Pro Version Materials for MFG Added ▪ Selling GCP Pro packages after initial free trial period ▪ New polymers, colors and support ▪ Approximately half of new FDM and SAF customers subscribing materials offer F900 customers ▪ Expandin
Slide 10: CFO Remarks
CFO Remarks Eitan Zamir CFO ▪ Delivering operating leverage to drive profitability in a CapEx constrained environment ▪ Maintained non-GAAP OpEx as a percent of revenues in a flat revenue quarter as we continue to invest for future growth ▪ These results highlight the financial discipline and busine
Slide 11: Financial Results
Financial Results GAAP Non-GAAP Q3-22 Q3-23 Change Y/Y Q3-22 Q3-23 Change Y/Y Total Revenue 162.2 162.1 0.0% 162.2 162.1 0.0% Gross Profit 70.7 65.6 (5.1) 78.7 78.3 (0.4) ▪ % Margin 43.6% 40.5% -3.1% 48.5% 48.3% -0.2% Operating Income (Loss) (15.6) (42.8) (27.2) 4.5 4.1 (0.4) ▪ % Margin -9.6% -26.4%
Slide 12: Revenue Growth - Record Consumables Recurring Revenue
Revenue Growth - Record Consumables Recurring Revenue Revenue of $162.1 million flat vs. Q3 2022 Product revenue up 1.0% vs. Q3 2022 Services revenue down 2.4% vs. Q3 2022 and up 3.3% at constant currency and and up 3.4% at constant currency and and up 3.1% at constant currency and excluding MakerBo
Slide 13: Gross Margins Maintained
Gross Margins Maintained Gross margins expected to improve with revenue growth GAAP Non-GAAP Product Gross Margin Total Gross Margin Service Gross Margin 50.1% 49.4% 56.7% 47.7% 47.4% 54.7% 53.8% 47.2% 52.3% 52.5% 43.6% 43.1% 43.8% 48.5% 48.4% 48.3% 41.5% 47.3% 48.5% 40.5% 40.4% 38.4% 32.5% 32.1% 33
Slide 14: Operating Expenses Reflect Business Model Scalability
Operating Expenses Reflect Business Model Scalability GAAP Non-GAAP operating expenses operating expenses Operating expense (absolute and as a percentage of revenues) (absolute and as a percentage of revenues) 66.9% management reflects 53.3% ongoing operational 45.8% 45.8% efficiencies and the scala
Slide 15: Ninth Straight Quarter of Positive Adjusted EPS
Ninth Straight Quarter of Positive Non-GAAP operating income modest decline Adjusted EPS attributable to slightly GAAP operating loss Non-GAAP operating income (2.8% in Q3’22 vs 2.5% in Q3’23 out of total revenue) lower YoY gross profit that more than offset flat (15.6) (42.8) 4.5 4.1 non-GAAP opera
Slide 16: Healthy Balance Sheet and Responsible Use of Cash
Healthy Balance Sheet and Cash use was primarily Responsible Use of Cash driven by costs related to mergers and acquisitions activities, Balance sheet items Cash flow from defense against hostile operating activities tender offer, proxy Q1-23 Q2-23 Q3-23 contest and related professional fees Cash an
Slide 17: Adjusting 2023 Outlook for Divestments, Delayed Launch of F3300
Adjusting 2023 Outlook for Divestments, Delayed Launch of F3300 and Soft CapEx Conditions $620-630M 48%-49% $288-$290M Gross Margins Non-GAAP Operating Revenue Targeting over 50% in 2024 Expenses 2.0-2.5% $0.10-$0.14 $35M-$38M $15-20M EPS-diluted-adjusted Non-GAAP Operating ($1.70)-($1.51)1 EBITDA-a
Slide 18: CEO Summary
CEO Summary Dr. Yoav Zeif CEO ▪ Customer adoption of 3D printing continues to grow, as we introduce new and improved systems, materials and software offerings ▪ Stratasys brings agility, flexibility and profitability to global manufacturing operations ▪ Additive manufacturing has established a formi
Slide 19: Thank You
$ stratasys Thank You
Slide 20: Appendix
Appendix Three months ended September 30, 2023 Three months ended September 30, 2022 GAAP Adjustments Non-GAAP GAAP Adjustments Non-GAAP Gross Profit (1) $65,649 $12,617 $78,266 $70,749 $7,990 $78,739 Operating income (Loss) (1,2) (42,798) 46,885 4,087 (15,626) 20,149 4,523 Net income (Loss) (1,2,3)