Nlight, Inc. · NASDAQ:LASR
Nlight — Q1 2021 Earnings Presentation
19 slides from Nlight's earnings presentation, May 6, 2021
Slide 1: Earnings Presentation Q1 2021
This presentation contains nLIGHT, Inc. proprietary information. No part of it may be circulated, quoted, or reproduced for distribution without prior written approval from nLIGHT, Inc. Earnings Presentation Q1 2021 May 6, 2021
Slide 2: Forward-looking statements
2 Certain statements in this presentation are “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995. Words such as “outlook
Slide 3: Q1 21 Business Highlights
3 • 42% growth (year-over-year) and expanding profitability in Q1 – $61 million of Q1 revenue with growth (y-o-y) in all market segments (Microfabrication, Industrial, Aerospace and Defense) – $6.0 million of Q1 Adjusted EBITDA (vs. $0.2 million in Q1 2020) • Strong secular drivers for lasers • Cont
Slide 4: Quarterly Revenue – Market
4 Quarterly Revenue – Market $ Millions 19% 19% 17% 20% 18% 14% 14% 16% 18% 13% 20% 21% 22% 19% 26% 30% 39% 29% 42% 44% 40% 28% 35% 33% 38% 38% 40% 42% 44% 45% 49% 41% 38% 43% 44% 43% 43% 37% 43% 35% 36% 35% 51% 46% 50% 42% 44% 46% 45% 40% 37% 38% 39% 41% 35% 38% 30% 26% 24% 27% 23% 20% 25% $22 $25
Slide 5: Quarterly Revenue – Geography
5 71% 59% 60% 60% 60% 57% 60% 62% 64% 54% 67% 68% 67% 62% 60% 65% 72% 59% 69% 72% 75% 29% 41% 40% 40% 40% 43% 40% 38% 36% 46% 33% 32% 33% 38% 40% 35% 28% 41% 31% 28% 25% $22 $25 $26 $29 $30 $35 $37 $37 $42 $52 $51 $46 $42 $48 $44 $43 $43 $52 $62 $66 $61 $0 $10 $20 $30 $40 $50 $60 $70 Q116 Q216 Q316
Slide 6: Financial Update
Financial Update
Slide 7: Summary Financial Results | Revenue and Gross Margin
7 Summary Financial Results | Revenue and Gross Margin Quarterly $ Millions; % of Revenue Q1 2020 Q1 2021 Total Revenue $43.2 $61.3 Products Revenue 36.9 47.3 Development Revenue 6.3 14.0 Gross Margin 22.0% 28.8% Products Margin 24.5% 35.8% Development Margin 7.5% 5.0%
Slide 8: Gross Margin | Product and Development Revenue and Gross Margin
8 Gross Margin | Product and Development Revenue and Gross Margin – Quarterly $ Millions; % of Revenue 15% 24% 22% 29% 30% 31% 34% 33% 35% 34% 35% 36% 32% 33% 30% 23% 22% 25% 28% 30% 29% 24% 24% 28% 32% 36% 36% 0% 5% 10% 15% 20% 25% 30% 35% 40% $0 $10 $20 $30 $40 $50 $60 $70 Q116 Q216 Q316 Q416 Q117
Slide 9: Operating Expenses | R&D and SG&A
9 6.1 6.7 6.3 6.7 7.0 7.2 6.9 7.3 6.0 6.2 6.4 6.5 7.1 4.3 4.7 5.0 5.8 5.9 5.8 6.0 6.9 6.1 6.5 7.9 8.2 8.1 $10.4 $11.4 $11.2 $12.5 $12.9 $13.0 $12.9 $14.2 $12.1 $12.8 $14.3 $14.7 $15.1 24% 22% 22% 27% 31% 27% 29% 33% 28% 24% 23% 22% 25% 0% 5% 10% 15% 20% 25% 30% 35% 40% $0 $2 $4 $6 $8 $10 $12 $14 $16
Slide 10: Summary Financial Results | Profitability and Cash Flow
10 * See Appendix for reconciliation to most directly comparable GAAP measure Q1 2020 Q1 2021 Net Income (Loss) ($7.5) ($6.1) Non-GAAP Net Income* (3.0) 2.6 EPS (diluted) (0.20) (0.15) Non-GAAP EPS (diluted)* (0.08) 0.06 Adjusted EBITDA (non-GAAP)* 0.2 6.0 Cash Flow from Operations (1.1) 4.1 Capital
Slide 11: Strong Balance Sheet and Working Capital Management
11 Strong Balance Sheet and Working Capital Management $41 $42 $46 $46 $49 $51 $53 $55 $59 121 116 128 126 128 115 105 106 117 0 15 30 45 60 75 90 105 120 135 $0 $10 $20 $30 $40 $50 $60 $70 $80 Q119 Q319 Q120 Q320 Q121 Inventory ($M) and Days of Inventory (DOI) Inventory DOI $30 $31 $29 $27 $27 $24
Slide 12: Outlook | Q2 2021
12 • Q2 2021 Revenues of $62 million to $68 million; midpoint of $65 million – Laser Products: approximately $51 million at midpoint – Advanced Development: approximately $14 million at midpoint • Q2 2021 Gross Margin of 26% to 30% – Laser Products: 32% to 36% – Advanced Development: approximately 6
Slide 13: Simply brilliant
Ve eece ee Simply brilliant
Slide 14: Appendix
Appendix
Slide 15: Supplemental Information | Revenue and Gross Margin
15 Supplemental Information | Revenue and Gross Margin nLIGHT, Inc. (in thousands, except per share amounts) Revenue: Products 42,467$ 51,705$ 51,025$ 46,162$ 191,359$ 41,861$ 48,048$ 43,814$ 40,336$ 174,059$ 36,930$ 45,104$ 51,117$ 51,690$ 184,841$ 47,335$ Development - - - - - - - - 2,560 2,560 6,
Slide 16: GAAP to Non-GAAP Reconciliation | Operating Expenses
16 GAAP to Non-GAAP Reconciliation | Operating Expenses nLIGHT, Inc. (in thousands, except per share amounts) GAAP research and development ("R&D") expense 4,283$ 4,898$ 5,475$ 6,398$ 21,054$ 6,422$ 6,494$ 6,402$ 8,819$ 28,137$ 8,538$ 9,472$ 11,126$ 12,028$ 41,164$ 11,710$ Non-GAAP adjustments: Stoc
Slide 17: GAAP to Non-GAAP Reconciliation | Adjusted EBITDA, Net Income and EPS
17 (1) There is no income tax effect related to the stock-based compensation, acquisition and integration-related costs, and amortization of purchased intangibles adjustments due to the full valuation allowance in the U.S. GAAP to Non-GAAP Reconciliation | Adjusted EBITDA, Net Income and EPS nLIGHT,
Slide 18: Supplemental Information | Key Revenue Metrics
18 Unaudited, USD in thousands Supplemental Information | Key Revenue Metrics Note: Percentages may not total to 100 due to rounding. Q117 Q217 Q317 Q417 FY 2017 Q118 Q218 Q318 Q418 FY 2018 Q119 Q219 Q319 Q419 FY 2019 Q120 Q220 Q320 Q420 FY 2020 Q121 Revenues by end market Industrial 11,268 13,828 1
Slide 19: Supplemental Information | Revenue by power level
19 Supplemental Information | Revenue by power level 2% 4% 13% 14% 17% 24% 30% 27% 24% 35% 40% 47% 49% 54% 58% 47% 54% 40% 41% 36% 39% 40% 45% 39% 43% 49% 44% 43% 51% 57% 48% 39% 39% 39% 35% 34% 39% 29% 60% 59% 64% 61% 58% 51% 49% 43% 34% 32% 27% 22% 19% 17% 20% 14% 12% 11% 9% 14% 17% 0% 10% 20% 30%