Stratasys, Ltd. · NASDAQ:SSYS
Stratasys — Q1 2018 Earnings Presentation
20 slides from Stratasys's earnings presentation, May 2, 2018
Slide 1: Stratasys Q1 2018
ak STRATASYS Q1 2018 May 2, 2018
Slide 2: Conference and webcast details
Q1 2018 Conference and . Live Dial-in webcast details Sie Information Ilan Levin Primary Dial-in: CEO 866-394-5776 International Dial- Lilach Payorski in: CFO 409-350-3596 Yonah Lloyd Said ack VP, Investor Oosns Relations Live webcast and replay: https://edge.media-server.com/m6/p/6zpd5mm6 stratasys
Slide 3: Forward Looking Statement
Forward Looking Statement The statements in this presentation regarding Stratasys' strategy, and the statements regarding its projected future financial performance, including the financial guidance concerning its expected results for 2018, are forward-looking statements reflecting management's curr
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 described below, are 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
Slide 5: Ilan Levin - CEO Opening Remarks
Ilan Levin - CEO Opening Remarks > Disappointed with first quarter revenue > Do not see fundamental change in demand environment and maintain strong pipeline of opportunities > Believe that new product introductions further expand our addressable markets in prototyping and production segments Commit
Slide 6: Lilach Payorski - CFO Financial Update
Lilach Payorski - CFO Financial Update
Slide 7: Financial Results
Financial Results Stratasys, Ltd. Non-GAAP Total Revenue $1632] $1538) (57%)| $1632) $1538) (5.7%) oY % (Gross Profit 763] 757) (2y_-835] 812] 22) semargin 4TA%| —49.2%| —_(1.6%)] —_51.2%| 52.8% (2.7%) J (Operating Profit (Loss) (26) 65) 62 ag 49) 03 Revenue 6% '% of Revenue (7.7%)} (4.2%) (48.8%)|
Slide 8: Financial Results — Revenue
Financial Results — Revenue Stratasys, Ltd. YoY" Total Revenue - Quarterly Trend ($ in millions) Product Revenue Product m Service 10% 130 46 a1 21% 108 104 2% ‘a 48 49 47 50 50 Yo 7% System Revenue Consumable Revenue Service Revenue = = = en en Customer support
Slide 9: Financial Results — Gross Margin Trends
Financial Results — Gross Margin Trends Stratasys, Ltd. GAAP. BP 49.2% qi'17 02'17 Q3'17 Qa'17 ai'18
Slide 10: Financial Results — Operating Expenses & Operating Income
Financial Results — Operating Expenses & Operating Income (loss) Stratasys, Ltd. YoY % GAAP Operating Exp. R&D Exp. SG&A Exp. Non-GAAP Operating Exp. R&D Exp. SG&A Exp. GAAP 39.8% 38.3% 38.7% 37.2% 37.1% 14.0% [] 14.8% l] Non - GAAP 34.6% 33.8% 34.3% ae 34.8% 13.0% L J ai'17 2117 93'17 Qa'17 u's @ F
Slide 11: Financial Results — Balance Sheet Summary & CF from operations
Financial Results — Balance Sheet Summary & CF from operations Stratasys, Ltd. 328.8 346.5 1327 1198 1157 1201 on ep |e | 451.6 450.2
Slide 12: Lilach Payorski - CFO Financial Summary
Lilach Payorski - CFO Financial Summary > First quarter revenue driven by underperformance in North American system orders >» Pleased with our operational performance despite lower than expected revenues > Continued our trend of positive cash generation from operating activities, and maintain health
Slide 13: Strategic Overview
Ilan Levin — CEO STRATEGIC OVERVIEW
Slide 14: Leading the additive manufacturing industry for years
Leading the additive manufacturing industry for 30 years Technology Leadership + Highly proliferated, precise, repeatable, and reliable FDM and PolyJet technology platforms Go-To-Market & Deep Customer Relationships + Well positioned in industry to assist customers moving from prototyping to product
Slide 15: Business cycle as market segments mature
BUSINESS CYCLE AS MARKET SEGMENTS MATURE Factory of the Future (3) designing and manufacturing with confidence Internal Validation / Qualification (2) driven by specific needs Early Adoption (1) will embrace new technology
Slide 16: Portfolio Updates — RAPID Announcements
Portfolio Updates — RAPID Announcements Prototyping + Upgraded version of the multi-material, full-color J750 3D Printer that adds increased reliability via hardware and software enhancements, and new J735 with a smaller build size + New Vivid Colors for GrabCAD Print on the J750 and J735, featuring
Slide 17: Metal Update
Metal Update Cost Reduction Operational Simplicity Production Focus @ me 3 4, LED heat sink Flat bracket Car valve adapter Oil pump housing Automotive | Defence | Aerospace | Industrial Machinery | White Goods | Power Tools | Sports Equipment {7 STRATASYS / AGLOBAL LEADER IN APPLIED ADDITIVE TECHNOL
Slide 18: Revenue & Earnings Guidance
Revenue & Earnings Guidance Revenue (M) $670 - $700 $(0.75) - $(0.46) Non-GAAP Diluted EPS. $0.30 - $0.50 Reconciliation of GAAP to Non-GAAP Guidance (Sin tons, rep per share data) Revenue $670t0 $700 GAAP Net Loss (541) t0 $25) (2) Stock-Based Compensation Expense $17t0$19 (2) Intangible Assets Amo
Slide 19: We Are a Global Leader in Applied Additive Technology Solutions
WE ARE A GLOBAL LEADER IN APPLIED ADDIT! TECHNOLOGY SOLUTIONS
Slide 20: Reconciliation of GAAP to Non-GAAP - Results of Operations
Reconciliation of GAAP to Non-GAAP - Results of Operations Stratasys Ltd. Three Months Ended Mar A [Gross Profit (1) $75,650 $5,599 $81,249 $76,880 $6,614 $83,494 [Operating income (Loss) (7,2) (6,465) 11,387 4922 (12,629) 16,658 4,029 Net income (Loss) attributable to Stratasys Ltd. (12,3) (13,041)