Slide 1: Stratasys Q3 2021 Results
1 Stratasys Q3 2021 Results Speakers Dr. Yoav Zeif , CEO Lilach Payorski , CFO Yonah Lloyd, CCO & VP IR November 4 th 2021
Slide 2: Conference Call and Webcast Details
2 Stratasys 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://78449.themediaframe.com/dataconf/productusers/ssys /mediaframe/47128/indexl.html
Slide 3: Forward-looking Statements
3 Stratasys 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 expec
Slide 4: Use of non-GAAP financial information
4 Stratasys 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 fo
Slide 5: Welcome
5 Stratasys Welcome • Additive manufacturing is at an inflection point • Improved technology, compelling advantages and supply chain needs are driving the shift from prototyping to production of end - use parts • As we prepare to launch two new mass production systems, Stratasys is executing on our
Slide 6: Highlights from Q3
6 Highlights from Q3 • Growth across all business lines and regions • 24% YoY revenue growth, driven by 35% Systems and 27% Consumables growth • System sales +7% over Q3’19 driven in part by our manufacturing systems Stratasys
Slide 7: Q3 Highlights: Trade shows return
7 Stratasys Q3 Highlights Trade shows return • More leads compared to 2019 at Rapid+TCT despite lower attendance • Strong Origin One interest • Returning to Formnext in Germany this month
Slide 8: Manufacturing focus gains traction
8 Stratasys Manufacturing focus gains traction • U.S. Navy signs contract for $20 million for up to 25 F900 systems, materials and support services over 5 years • We believe it is the largest government additive manufacturing contract of its kind • Advancing U.S. Department of Defense strategy to in
Slide 9: Q3 Highlights: Xaar 3D acquisition
9 Stratasys Q3 Highlights Xaar 3D acquisition • Stratasys exercises option to acquire remaining 55% from Xaar • H350 beta program approaches completion • Early installations demonstrate production scale 3D printing
Slide 10: Recent healthcare accomplishments
10 Stratasys Q3 Highlights Recent healthcare accomplishments • Healthcare is our fastest - growing business • J5 DentaJet and J5 MediJet see early market momentum • Ricoh partnership with Stratasys and IBM Watson Health brings point - of - care and on - demand anatomical modeling services to healthc
Slide 11: Software strategy advances
11 Stratasys Q3 Highlights Software strategy advances • ProtectAM enhances cybersecurity of additive manufacturing, the first to work with Red Hat Enterprise Linux, world’s leading enterprise platform • GrabCAD Additive Manufacturing Open Platform Announced o TAM $3.3B by 2026* o Enterprise - ready
Slide 12: Competitive advantages to lead polymer additive manufacturing
12 Stratasys Competitive advantages to lead polymer additive manufacturing Broadest polymer technology platform Five best - in - class technologies for every step in the product lifecycle – from concept through manufacturing Enterprise - ready software platform to scale additive manufacturing Compre
Slide 13: Q3 Financial Results
13 Stratasys Q3 Financial Results Lilach Payorski CFO • Third quarter results demonstrate continued strength in growing our market • Generated operating profit and cash o Revenue +24.3% o Systems +34.7% o Consumables +26.6% o OCF $3.0M
Slide 14: Financial Results – Q3 2021 GAAP and Non-GAAP
14 Stratasys GAAP Non - GAAP Q3 - 20 Q3 - 21 Change Y/Y Q3 - 20 Q3 - 21 Change Y/Y Total Revenue 1 27.9 1 59. 0 2 4.3% 1 27.9 1 . 0 2 4.3% Gross Profit 4 9 . 8 6 8 . 2 1 8 . 4 5 9.8 76.7 16. 9 % Margin 3 8.9% 42.9% 4 . 0% 46.8% 48.2% 1 . 4% Operating Income (Loss) ( 404. 3 ) ( 2 1.9) 382 . 4 (1.0) 1
Slide 15: Revenue driven by product sales growth
15 Stratasys Financial Results – Q3 2021 Revenue driven by product sales growth of 30.3% Customer Support and Systems above, and Consumables near, Pre - COVID Levels Note: $ in millions unless noted otherwise. All numbers and percentages rounded Quarterly Trend 83.5 99.2 90.3 100.3 108.9 44.3 43.2 4
Slide 16: Gross margins improved
16 Stratasys Financial Results – Q3 2021 Gross margins improved from higher systems and consumables Still challenged by rising logistics and raw materials costs and NPI ramp - up Non - GAAP GAAP Total Gross Margin Product Gross Margin Service Gross Margin All percentages rounded 38.9% 46.4% 41.4% 43
Slide 17: Operating expenses trending improvement as % of revenue
17 Stratasys Financial Results – Q3 2021 Operating expenses trending improvement as % of revenue Non - GAAP operating expenses GAAP operating expenses 67.9 90.1 386.2 Q3'20 Q3'21 60.8 74.9 Q3'20 Q3'21 47.6% 47.1% Note: $ in millions unless noted otherwise. All numbers and percentages rounded 355.0%
Slide 18: Operating income and net earnings improvement
18 Stratasys Financial Results – Q 3 2021 Financial Results – Q3 2021 Operating income and net earnings improvement. GAAP operating loss (404.3) (21.9) Q3'20 Q3'21 Non - GAAP operating (loss) income ( 1.0 ) 1.8 Q3'20 Q3'21 GAAP net loss Non - GAAP net (loss) income (405.1) (18.1) Q3'20 Q3'21 (3.0) 0
Slide 19: Balance sheet strong at $519.9M cash and equivalents
19 Stratasys Financial Results – Q3 2021 Balance sheet strong at $519.9M cash and equivalents Five consecutive positive quarters generated $57.7M operating cash Cash flow from operating activities Balance sheet items Q3 - 20 Q2 - 21 Q3 - 21 Cash and Cash Equivalents and Short - term deposits 308.2 5
Slide 20: Q4 and 2021 Outlook
20 Stratasys • Revenue in Q4 2021 is expected to grow approximately 16% compared to Q4 2020, driven by continued growth in systems • Operating expenses for 2021 are expected to be approximately $36M higher than 2020 , reflecting full ownership of Xaar 3D and higher operating costs relative to higher
Slide 21: Summary
21 Stratasys Summary Dr. Yoav Zeif , CEO • We have solutions for every step in the product life cycle chain to capitalize on this trend • Only Stratasys provides the full range of best - in - class technologies for polymer 3D printing • Our investments, balance sheet and strategy execution position
Slide 22: Thank You – Q&A
22 Thank You Any questions? Thank You Q&A Stratasys
Slide 23: GAAP to Non-GAAP reconciliation, three months ended September 30, 2021
23 Stratasys Three months ended September 30, 2021 Three months ended September 30, 2020 GAAP Adjustments Non - GAAP GAAP Adjustments Non - GAAP Gross Profit (1) Operating income (Loss) (1,2) Net income (Loss) attributable to Stratasys Ltd (1,2,3) Net income (Loss) per diluted share attributable to