Stratasys, Ltd. · NASDAQ:SSYS
Stratasys — Q4 2013 Earnings Presentation
29 slides from Stratasys's earnings presentation, Mar 3, 2014
Slide 1: Q4-2013 Financial Results Conference Call
Q4-2013 Financial Results Conference Call March 3rd 2014
Slide 2: Q4-2013 Conference and webcast details
Q4-2013 Conference and webcast details 2 • CEO David Reis • CFO & COO Erez Simha • VP, Investor Relations Shane Glenn Speakers Live Dial-in Information PRIMARY DIAL-IN: (866) 318-8617 INTERNATIONAL DIAL-IN: (617) 399-5136 PARTICIPANT PASSCODE: 37260413 PRIMARY DIAL-IN: (888) 286-8010 INTERNATIONAL D
Slide 3: Forward looking statement
Stratasys Forward looking statement 3 Certain information included or incorporated by reference in this press may be deemed to be “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, and Section 21E of the
Slide 4: Summary & Outlook
Record results include organic growth of 36% driven by Stratasys-Objet revenue synergies and broad-based demand for products and services Impressive contribution from MakerBot of $25 million for the fourth quarter as the desktop segment continues rapid expansion Strong non-GAAP net income growth of
Slide 5: Financial Results
Financial Results Stratasys Ltd. Non-GAAP ($ in millions unless noted otherwise) Q4-12 Pro forma Q4-13 Change YOY Unit Sales 1,136 10,963 865.1% Total Revenue $96.4 $155.8 +61.6% Revenue/Employee 0.083 0.086 +2.6% Gross Profit % margin 55.7 57.8% 93.7 60.2% +68.2% Operating Expenses % of sales 37.4
Slide 6: Financial Results: Revenue
$81.7 $82.8 $90.4 $108.3 $135.6 $14.7 $15.4 $16.3 $17.7 $20.2 Q4-12 Q1-13 Q2-13 Q3-13 Q4-13 Product Revenue Service Revenue $81.7 $135.6 $14.7 $20.2 Q4-2012 Q4-2013 Product Revenue Service Revenue Financial Results Revenue Stratasys Ltd. Non-GAAP ($ in millions) 6 Total Revenue - Quarter Total Reven
Slide 7: Financial Results: System Unit Sales
Financial Results System Unit Sales1 Stratasys Ltd. 7 1,136 10,963 Q4-2012 Q4-2013 System Unit Sales Total Units – Quarter Total Units – Quarterly Trend (1) Includes systems sold by Stratasys, Inc., Objet Ltd., and Solidscape Inc. in all periods; and units for Makerbot starting only on August 15, 20
Slide 8: Financial Results: Gross Profit
62.4% 63.9% 62.9% 62.3% 62.9% 32.5% 32.1% 38.5% 37.6% 41.9% 57.8% 59.0% 59.2% 58.8% 60.2% Q4 '12 Q1 '13 Q2 '13 Q3 '13 Q4 '13 Product Gross Margin Service Gross Margin Total Gross Margin Gross Margin – Quarterly Trend ($ in millions unless noted otherwise) Q4-12 Q4-13 % Change YOY Product Revenue % o
Slide 9: Financial Results: Operating Profit
($ in millions unless noted otherwise) Q4-12 Q4-13 % Change YOY R&D Expense % of sales 9.2 9.6% 15.5 9.9% +67.7% SG&A Expense % of sales 28.1 29.2% 46.8 30.1% +66.4% Total Operating Exp. % of sales 37.4 38.8% 62.3 40.0% +66.7% Total Operating Profit % margin 18.4 19.1% 31.4 20.2% +71.2% 9.6% 10.1% 8
Slide 10: Financial Results: Growth Drivers
Q4-2013 (YOY) Units Dollars System Revenue +865% +80% Consumable Revenue -- +40% Customer Service Revenue -- +37% RedEye Parts Services -- +22% Financial Results Growth Drivers Stratasys Ltd. Non-GAAP 10
Slide 11: Financial Results: Revenue Geographic Mix
Financial Results Revenue Geographic Mix Stratasys Ltd. Non-GAAP 11 North America 55% EMEA 27% APAC 17% Other 1% Geographic Sales Q4-2013 North America 50% EMEA 29% APAC 19% Other 2% Geographic Sales Q4-2012 * Periods prior to 2013 are pro forma including Objet, Ltd.
Slide 12: Financial Results: Balance Sheet Summary
Financial Results Balance Sheet Summary Stratasys Ltd. ($ in millions unless noted otherwise) 12 Selected balance sheet items ($mm) Q3-13 Q4-13 Cash , Bank Deposits & Investments $616.5 $616.1 Accounts Receivable 86.6 99.2 Inventories 79.8 88.4 Net Working Capital 709.5 714.4 Highlights – $616.1 M i
Slide 13: Financial Results & Projections
13 $277 $359 $487 $660-680 $0.94 $1.49 $1.84 $2.15 – $2.25 $0.75 $1.25 $1.75 $2.25 $2.75 $- $100.00 $200.00 $300.00 $400.00 $500.00 $600.00 $700.00 FY11 FY12 FY13 FY14 (guidance) Revenue (millions) Diluted EPS Financial Results & Projections Stratasys Ltd. Non-GAAP unless noted otherwise) * Periods
Slide 14: Financial Guidance and Long-Term Target Operating Model
Revenue growth Operating margin1 Net income margin1 Effective tax rate1 +20% 20% – 25% of sales 15% – 20% 16% - 21% of sales Financial Guidance Long-Term Target Operating Model Stratasys Ltd. Non-GAAP 15 1 Non-GAAP.
Slide 15: Stratasys Strategic Imperatives
Lead the Prototyping Market Expand Direct Digital Manufacturing Improve on 3D Printing Accessibility Improve Customer Intimacy 16 Stratasys Strategic Imperatives Introduce New Niche Vertical Applications Accelerate New Solutions to the Market
Slide 16: Objet Connex3 Color Multi-material 3D Printer
Stratasys Objet Connex3 Color Multi-material 3D Printer 17 Multi-material, color 3D printer • Simultaneously jets three base materials • Each combination creates a vibrant color palette up to 46 tints – with a total of 10 palettes • More than 500 material options, including rigid, rubber-like and cl
Slide 17: CES Product Launches
Stratasys CES Product Launches 18 MAKERBOT REPLICATOR Z18 MAKERBOT REPLICATOR MINI MAKERBOT REPLICATOR FIFTH GENERATION MAKERBOT REPLICATOR 3D PRINTERS
Slide 18: Materials
Stratasys Materials 19 Nylon 12 • Flexible: elongation-at-break surpasses other 3D printed Nylon 12 material by up to 100% • Tough: First semi-crystalline material and the toughest Stratasys material • Specifically engineered for Fortus Systems • Targets: aerospace, automotive, home appliance and co
Slide 19: Channel Expansion and Go-to-Market
Stratasys Channel Expansion and Go-to-Market 20 A m e r i c a s E u r o p e A s i a P a c i f i c M i d d l e E a s t
Slide 20: Channel Expansion and Go-to-Market
Stratasys Channel Expansion and Go-to-Market 21 A m e r i c a s E u r o p e A s i a P a c i f i c M i d d l e E a s t Korea
Slide 21: Channel Expansion and Go-to-Market
Stratasys Channel Expansion and Go-to-Market 22
Slide 22: Vertical Expansion: Education
Stratasys Vertical Expansion: Education 23 + We are on a mission to put a MakerBot Desktop 3D Printer in every school in the United States of America Projects Funded: 854 Students Impacted: 200,000
Slide 23: Vertical Expansion: Dental
Stratasys Vertical Expansion: Dental 24 Objet Eden260V Dental Advantage 3D Printer • Produces highly accurate dental and orthodontic models, and surgical guides • Affordable access to digital dentistry • Target: Dental labs VeroGlaze (MED620) Dental Material • Natural color - A2 teeth shade • Accura
Slide 24: Vertical Expansion: Manufacturing
Stratasys Vertical Expansion: Manufacturing 25 Stratasys Fortus Production Line Driving DDM • Italian service bureau Spring SLR added second Fortus 900mc to support DDM applications • Stratasys FDM technology leading to 66% faster turnaround times and 50% cost savings, compared to traditional manufa
Slide 25: MakerBot 3D Printing Ecosystem: Thingiverse
Stratasys MakerBot 3D Printing Ecosystem: Thingiverse 26 • 3D Design Community for discovering, printing, and sharing 3D models • Easiest and largest place to browse 3D models • Over 178,000 total users • Over 218,000 downloadable Things • In December alone, 21,000 Things uploaded • In 2013, the sit
Slide 26: MakerBot 3D Printing Ecosystem: MakerBot Apps
Stratasys MakerBot 3D Printing Ecosystem: MakerBot Apps MakerBot Digital Store 27 MAKERBOT MOBILE MAKERBOT PRINTSHOP MAKERBOT DIGITAL STORE MAKERBOT DESKTOP
Slide 27: We are Stratasys
XX March 2013 We are Stratasys We shape lives by revolutionizing the way things are made We are innovation We are fearless leaders We are customer driven Our quality matters Our people make the difference
Slide 28: Reconciliation of Pro Forma GAAP to Pro Forma Non-GAAP Results of Operations
30 Reconciliation of Pro Forma GAAP to Pro Forma Non-GAAP Results of Operations Stratasys Ltd. Combined ($ in thousands except per share data) Q4-12 Q4-12 Pro Forma Pro Forma Q4-13 Q4-13 GAAP Adjustments Non-GAAP GAAP Adjustments Non-GAAP Net sales Products 81,651 $ - $ 81,651 $ 134,943 $ 668 $ 135,
Slide 29: Reconciliation of Non-GAAP Adjustments
31 Reconciliation of Non-GAAP Adjustments Stratasys Ltd. Combined Q4-12 Q4-13 Net sales, products Deferred revenue step-up - $ 668 $ Cost of sales, products Intangible assets amortization expense (10,260) (14,233) Non-cash stock-based compensation expense (361) (496) Merger related expense (315) (36