Slide 1: Q3 2024 Results
Q3 2024 Results Speakers Dr. Yoav Zeif, CEO Eitan Zamir, CFO Yonah Lloyd, CCO & VP IR November 13, 2024 Make additive work for you
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.html?webcastid=xEC56y1o Make additive work for you
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
Dr. Yoav Zeif CEO ▪ Agile, strong and well-positioned after transformative cost- cuts and enhanced focus on growth opportunities ▪ F3300 has generated excitement from the market and is expected to help us expand our presence in manufacturing ▪ TrueDent solution is proven and highly regarded for its
Slide 6: F3300 Update
F3300 Update ▪ Continue to drive demand for our new, flagship F3300 industrial platform ▪ Showcased at the International Manufacturing Technology Show in Chicago in September ▪ Designed for superior performance, the F3300 delivers high-quality, durable thermoplastic parts with unmatched accuracy ▪ D
Slide 7: Q3 Updates
Q3 Updates Origin 2 launched along Neo Build Processor $50M share repurchase with the Origin Cure post- launched for Investment execution to help processing system, Casting to accelerate maximize shareholder focused on injection- production of high-quality value has started, while molding quality fo
Slide 8: Restructuring Update
Restructuring Update ▪ Strategic initiatives recently implemented designed to reinforce our industry leadership and ensure sustainable profitability across market cycles ▪ Action plan to realign operational costs with current market dynamics through a workforce reduction of 15%, while intensifying o
Slide 9: Eitan Zamir, CFO
Eitan Zamir CFO ▪ Resilience of our operating model – a key differentiator relative to peers in our sector ▪ Fast actions of our team, as we delivered improved gross margins and bottom-line profit despite year-over-year pressure on revenues ▪ Another quarter of YoY growth in consumables sales and fa
Slide 10: Financial Results
Financial Results GAAP Non-GAAP Q3-23 Q3-24 Change Y/Y Q3-23 Q3-24 Change Y/Y Total Revenue 162.1 140.0 -13.6% 162.1 140.0 -13.6% Gross Profit 65.6 62.7 (2.9) 78.3 69.5 (8.8) ▪% Margin 40.5% 44.8% 4.3% 48.3% 49.6% 1.3% Operating Income (Loss) (42.8) (25.5) 17.3 4.1 -0.1 (4.2) ▪% Margin -26.4% -18.2%
Slide 11: Revenues – Consumables Recurring Revenue Growth Continues
Revenues – Consumables Recurring Revenue Growth Continues Quarterly Trend Revenues – Q3’24 Product Service Revenue Y/Y Y/Y Adjusted* 162.1 156.3 144.1 140.0 Product - $94.1M -16.9% -16.9% 138.0 48.9 45.9 44.9 ▪ Systems - $31.7M -38.4% -38.4% 44.4 45.9 ▪ Consumables - $62.4M 1.0% 1.0% 113.2 110.4 Ser
Slide 12: Gross Margins – Non-GAAP Highest Since Q4 2019
Gross Margins – Non-GAAP Highest Since Q4 2019 GAAP Non-GAAP Product Gross Margin Total Gross Margin Service Gross Margin 55.5% 55.6% 55.1% 52.5% 52.6% 49.8% 50.0% 48.8% 48.6% 49.0% 49.6% 47.4% 49.8% 50.0% 49.3% 48.3% 47.4% 47.2% 47.2% 44.6% 44.7% 44.6% 44.4% 44.4% 43.8% 44.8% 44.8% 43.8% 40.5% 40.5
Slide 13: Operating Expenses – Improvement Reflects Benefit of Restructuring
Operating Expenses – Improvement Reflects Benefit of Restructuring GAAP Non-GAAP operating expenses operating expenses (absolute and as a percentage of revenues) (absolute and as a percentage of revenues) 66.9% 63.0% 45.8% 49.7% 108.4 88.2 74.2 69.6 Q3'23 Q3'24 Q3'23 Q3'24 Note: $ in millions unless
Slide 14: Earnings – Return to Adjusted Profitability
Earnings – Return to Adjusted Profitability Non-GAAP operating income (loss) GAAP operating loss (2.5% in Q3’23 vs (0.1)% in Q3’24 out of total revenue) 4.1 (42.8) (25.5) (0.1) Q3’23 Q3’24 Q3’23 Q3’24 Non-GAAP EBITDA GAAP net loss (6% in Q3’23 vs 3.6% in Q3’24 out of total revenue) 9.8 )26.6( 5.1 (4
Slide 15: Balance Sheet and Operating Cash Flow
Balance Sheet and Operating Cash Flow Balance sheet items Cash flow from operating activities Q1-24 Q2-24 Q3-24 Cash and Cash Equivalents and Short- 161.1 150.9 144.0 term deposits Accounts Receivable 155.3 150.5 153.7 (4.5) (12.7) (75.4) (62.3) Inventories 195.1 196.5 195.2 Net Working Capital 373.
Slide 16: 2024 Outlook – Raising Margins and Profit
2024 Outlook – Raising Margins and Profit Forecast $570M – $580M 49.0% – 49.2% $276M – $278M Non-GAAP Non-GAAP Operating Revenue Gross Margins Expenses 0.6% – 1.3% $0.03 – $0.07 $25M – $28M $15M – $20M Non-GAAP Operating EPS-diluted-adjusted EBITDA-adjusted CAPEX Margins ($1.48)-($1.27) GAAP EPS dil
Slide 17: Summary
Dr. Yoav Zeif CEO Summary ▪ Effective implementation of key initiatives to transform the company has streamlined the operations, improved margins, and tightened our focus to the most compelling use-cases ▪ Enabling our customers to more easily ramp their adoption of additive manufacturing with more
Slide 18: Thank You
THANK YOU Make additive work for you
Slide 19: Appendix
Appendix Three Months Ended September 30, 2024 Three Months Ended September 30, 2023 GAAP Q3-24 Non-GAAP GAAP Adjustments Non-GAAP Gross Profit (1) $62,730 6,768 $69,498 $65,649 12,617 $78,266 Operating income (Loss) (1,2) (25,465) 25,351 (114) (42,798) 46,885 4,087 Net income (Loss) (1,2,3) (26,614