Slide 1: Q4 and FY2022 Results
Q4 and FY2022 Results Speakers Dr. Yoav Zeif, CEO Eitan Zamir, CFO Yonah Lloyd, CCO & VP IR March 2, 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=K6UFH5he 2 2
Slide 3: Forward-Looking Statements
Forward - Looking Statements Cautionary Statement Regarding Forward - Looking Statements 3 3 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 resu
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
Slide 5: Welcome
Welcome ▪ Performed well against a challenging environment ▪ Delivered sixth consecutive quarter of positive earnings ▪ Executing on our strategy to be the leading innovator and provider of polymer additive manufacturing solutions ▪ Broad, global, diverse offerings ▪ Unique go - to - market capabili
Slide 6: Full Year Summary
6 Full Year Summary ▪ Revenue growth of 7.3% y/y, or 11.4% adjusted for MakerBot and constant currency ▪ Gross margin slightly higher than 2021 and poised to grow ▪ Manufacturing contributed 32.5% of total revenues ▪ Adjusted EPS of $0.15 ▪ Strong balance sheet with no debt
Slide 7: Helping Customers Succeed in a Challenging Environment
Helping Customers Succeed in a Challenging Environment 7 ▪ Uncertain economy still affecting purchase behavior - Sales cycles are longer with some order deferrals ▪ Business benefits of 3D printing – production efficiency, better products, reduced logistics costs, faster time to market – becomes mor
Slide 8: We Executed On Our Growth Strategy in 2022
We Executed On Our Growth Strategy in 2022 Investments for Growth ▪ Riven acquisition – AI software ▪ Axial3D investment – AI medical cloud software ▪ Covestro AM acquisition (closure expected in Q2’23) ▪ MakerBot - Ultimaker – immediately accretive Materials Innovations ▪ First Validated 3 rd party
Slide 9: Creating New Growth Opportunities in $50B Dental Parts Industry
9 Creating New Growth Opportunities in $50B Dental Parts Industry First Monolithic, Multi - Color 3D Printed Dentures Solution ▪ TrueDent FDA - cleared resin works exclusively with J5 DentaJet printer ▪ Dentures represent $5B+ opportunity and only 5% are created digitally today ▪ Digital workflow in
Slide 10: Coming in 2023: Clinical Trial
Coming in 2023: Clinical Trial ▪ Designed to determine the clinical and economical value of patient - specific anatomic models as pre - operative surgical tools ▪ Stratasys will be the first 3D printing manufacturer to run such a trial Patient Specific Solution Delivered as Cloud Service Shipped to
Slide 11: CFO Remarks
▪ Solid results in a challenging environment ▪ Q4 OEM business growth of 3.2% year/year (constant currency) ▪ Efficiency helping improve OpEx as percentage of revenue to lowest level in eight quarters ▪ Achieved 2022 operating income guidance above 2.0% CFO Eitan Zamir CFO Remarks
Slide 12: Financial Results
Financial Results Note: $ in millions unless noted otherwise. All numbers and percentages rounded GAAP Non - GAAP Q4 - 21 Q4 - 22 Change Y/Y Q4 - 21 Q - 22 Change Y/Y Total Revenue 167.0 159 3 - 4.6% 167.0 159.3 - 4.6% Gross Profit 73.0 68 . 6 (4 . 4) 81.3 77.1 (4.2) ▪ % Margin 43.7% 4 .1 % - 0 . 6%
Slide 13: Revenues – Q4 2022
Revenues – Q4 2022 * Reflects only 2 months of MakerBot revenue. Note: $ in millions unless noted otherwise. All numbers and percentages rounded Quarterly Trend Revenues - Q4’22 118.0 113.1 115.7 112.1 111.2 49.0 50.3 50.9 50.1 48.1 167.0 163.4 166.6 162.2* 159.3 Q4' 21 Q1' 22 Q2' 22 Q3' 22 Q4' 22 P
Slide 14: Revenues – FY 2022
Revenues – FY 2022 * Reflects only 8 months of MakerBot revenue. Note: $ in millions unless noted otherwise. All numbers and percentages rounded Annual Trend 456.6 430.7 339.8 417.6 452.1 206.7 205.3 181.0 189.7 199.4 663.2 636.1 520.8 607.2 651.5 2018 2019 2020 2021 2022 Product Service Revenue of
Slide 15: Gross Margins
Gross Margins GAAP Non - GAAP 43.7% 42.6% 40.5% 43.6% 43.1% 49.6% 47.5% 47.2 % 50.1% 47.7% 29.6% 31.7% 25.2% 29.0% 32.5% Q4 '21 Q1 '22 Q2 '22 Q3 '22 Q4 '22 48.7 % 47.3% 47.6% 48.5% 48.4% 56.2% 53.7% 53.6% 56.7 % 54.7% 30.6% 33.1% 34.0% 30.3% 33.7% Q4 '21 Q1 '22 Q2 '22 Q3 '22 Q4 '22 Service Gross Mar
Slide 16: Operating Expenses Reduction Reflecting Scalability
Operating Expenses Reduction Reflecting Scalability GAAP operating expenses (absolute and as a percentage of revenues) Non - GAAP operating expenses (absolute and as a percentage of revenues) Operational efficiency improvements paying off; OpEx as percentage of revenue lowest in 8 quarters 89.2 67.1
Slide 17: Profitable Results
Profitable Results Note: $ in millions unless noted otherwise. All numbers and percentages rounded GAAP operating income (loss) Non - GAAP operating income Improving operating income and net income reflect business scalability and operational efficiencies, resulting in lower operating expenses GAAP
Slide 18: Fortified Balance Sheet and Responsible Cash Use
Fortified Balance Sheet and Responsible Cash Use Note: $ in millions unless noted otherwise. All numbers and percentages rounded Strong balance sheet at $328M cash and equivalents after recent strategic investments Cash use tied to deliberately increased inventory purchases Balance sheet items Cash
Slide 19: 2023 Outlook
2023 Outlook ▪ 2023 range: $290M - $300M Operating Expe nses Gross Margins ▪ 2023 range: 48.0% - 49.0% ▪ Targeting 50%+ in next few years ▪ GAAP net loss of ($1.12) - ($0.83) per d iluted share ▪ Non - GAAP net income $0.12 - $0.24 per diluted share ▪ Adjusted EBITDA of $35M - $ 50 M, improving to 1
Slide 20: CEO Summary
▪ Profitable growth with a sharpened focus on core OEM offerings ▪ Today’s business challenges reinforce additive manufacturing’s benefits ▪ Balance sheet strength to continue to invest in hardware, materials and software to broaden our market presence ▪ Relentless focus on execution and investment
Slide 21: Thank You
$ stratasys Thank You
Slide 22: Appendix
Appendix Note: $ in millions unless noted otherwise. All numbers and percentages rounded Three months ended December 31 , 2022 Three months ended December 31, 2021 GAAP Adjustments Non - GAAP GAAP Adjustments Non - GAAP Gross Profit (1) $ 68,648 $ 8,423 $ , $ 73,043 $ 8,255 $ 81,298 Operating income