Stratasys, Ltd. · NASDAQ:SSYS
Stratasys — Q3 2019 Earnings Presentation
16 slides from Stratasys's earnings presentation, Nov 13, 2019
Slide 1: Financial Results Conference Call
Financial Results Conference Call strata: November 13, 2019 = Stratasys
Slide 2: Conference call & webcast details
Q3 2019 Conference call & webcast details Speakers * Elan Jaglom — Interim CEO Live dial-in information + Lilach Payorski —- CFO Primary dial-in: * Yonah Lloyd — VP, Investor Relations +1-866-394-5776 International dial-in: +1-409-350-3596 Participant passcode: 9983069 Live webcast and replay: https
Slide 3: Forward looking statements
Forward looking statements ‘The statements in ths presentation regarding Stratasys' strategy, and the statements regarding its projected future financial performance, including the financial guidance conceming its expected Fesuite for 2010, are forward-looking statements reflecting managements curre
Slide 4: Use of non-GAAP financial information
Use of non-GAAP financial information ‘The non-GAAP data that appears below, which excludes certain items as fare non-GAAP financial measures. Our management believes that these non-GAAP financial measures are useful information for investors and shareholders of our company in gauging our results of
Slide 5: Opening Remarks
Elan Jaglom Interim CEO Opening Remarks + Q3 results reflect continuation of delivering earnings and profitability, despite the impact of economic weakness in Europe and Asia + Increasing adoption in target verticals in Americas, and expect to see same trends in other regions when macro conditions i
Slide 6: Financial Update
Finaacial Update Lilach Payorski— CFO
Slide 7: GAAP and Non-GAAP results summary
Financial Results GAAP Non-GAAP Q3-19 Change Y/Y Q3-19 Total Revenue Gross Profit 84.5 825 (2.0) % Margin 52.1% 52.4%| 0.3%| Operating Income (Loss) 8.2 8.1 (0.1) % Margin 5.0%| 5.1%! 0.1% Pre-Tax Income (Loss) 84 84 03 % Margin 5.0%| 5.3%! 0.3%| Tax Expenses 14 14) 03 EBITDA 14.4 13.9 =1% Net Incom
Slide 8: Revenue Quarterly Trend
Financial Results Revenue Quarterly Trend 7A us 155.3 Aad 187.5 52.6 Revenue Growth — Q 52.4 52.8 51.1 YIY Re YIY evenue eas) Product -3% 2% System 9% 9% 124.5 nae = 106.3 Consumables 43% +5% Service -2% -2% Customer Support 43% 44% Q318 418 Qi119 Q219 Q3'19 mService Product $n milions unless noted
Slide 9: Gross margin trends
Financial Results Gross margin trends GAAP 58.0% 57.3% 58.3% 55.6% wigk 48.7% 49.1% 49.2% 49.7% 49.2% oe 36.1% beet 33.9% eda 30.1% 318 418 aig 219 319 Non-GAAP 60.6% 618% — g11m% «2.3% 52.1% 52.2% 52.0% 52.5% 52.4%
Slide 10: Operating expenses and operating margin trends
Financial Results Operating expenses and operating margin trends 10% a 756 318 Q3"19 GAAP Operating Expenses 3% Bo Q318 Q3 19 Non-GAAP Operating Expenses ‘Sin millions unless noted otherwise All numbers and percentages rounded 7.2% 5.5% 5.0% ease 5.1% 2.1% 0.5% 2.1% 21% 3.8% 318 ass ais 249 3419 —®-
Slide 11: Balance sheet summary and cash flow from operations
Financial Results Balance sheet summary and cash flow from operations 5.0 Q3-18 Q2-19 Q3-19 Cash and Cash Equivalents 348.9 366.3 347.4 ‘Accounts Receivable 29.5 B15 133.7 Inventories 18.1 147.8 164.7 a6 Net Working Capital . 5. . - ing Capi 483.9 505.9 509.0 wa aat9 Cash Flow From Operating Activit
Slide 12: Financial Summary
Lilach Payorski CFO Financial Summary + Pleased with profitability and earnings in the third quarter that reflect positive impact of expense management and operational efficiencies — despite lower revenues in some regions + Positive year-over-year growth in the core professional and production focus
Slide 13: Closing remarks
heer ~ -Elan Jaglom, Interim CEO
Slide 14: Revenue and Earnings Guidance
Revenue and Earnings Guidance Revenue (M) $640 - $655 GAAP Diluted EPS ($0.31) — ($0.05) Non-GAAP Diluted EPS $0.55 - $0.70 in millions unless noted otherwise Reconci ($ in millions, except per share data) Revenue GAAP Net Loss (1) Stock-Based Compensation Expense (2) Intangible Assets Amortization
Slide 15: Thank You
Thank You vee it asin (PA HO St etrataaic
Slide 16: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation Results of operations Stratasys Ltd fieoss Prot 0) $7408 35.087 $82,408 $7,228 35.545 384473, income (Lass) (1.2) (6.962) 14.085 3.108 3280 4218 8.168 Netincome (oss) tebutable to Sataoys Ud (1.23) eset) 18278 Ce (67) 0.263 5704 letincome (Loss per uted share atrbuabl