Stratasys, Ltd. · NASDAQ:SSYS
Stratasys — Q1 2019 Earnings Presentation
20 slides from Stratasys's earnings presentation, May 2, 2019
Slide 1: Financial Results Conference Call
Financial Results Conference Call May 2, 2019 2s Stratasys
Slide 2: Conference call & webcast details
Q1 2019 Conference call & webcast details Speakers « Elan Jaglom — Interim CEO * David Reis — Vice-Chairman « Lilach Payorski - CFO « Yonah Lloyd — VP, Investor Relations Live webcast and replay: bitys Vedae media-cerver com/m6/p/cwvibv mie Live dial-in information Primary dial-in: +1-866-394-5776 I
Slide 3: Forward looking statements
Forward looking statements The statements in this presentation regarding Stratasys’ strategy, and the statements regarding its projected future financial performance, including the financial guidance conceming its expected resus for 2019, are forwardooking statements reflecting management's current
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: Elan Jaglom, Interim CEO: Opening Remarks
Elan Jaglom Interim CEO Opening Remarks ¢ Pleased with first quarter top line results and continuation of strong North American performance ¢ Pleased with non-GAAP profitability * Excited about recent new product introductions and upcoming portfolio announcements Make it Better
Slide 6: Financial Update
Financial Update Lilach Payorski — CFO
Slide 7: Financial Results
Financial Results GAAP Q1-18 Q1-19 Non-GAAP Change Y/Y Q1-18 Q1-19 Change Y/Y Total Revenue 153.8 155.3 1.0% 153.8 155.3 1.0%| Gross Profit 75.7 76.5 0.8 81.2 80.7 (0.5)| % Margin 49 2%| 49.2% 1.1% 52.8%| 52.0%} -0.7%| Operating Income (Loss) (6.5) (3.3) 3.2 49 6.8 1.9 % Margin ~4.2%| -2.1%| 49.4%)
Slide 8: Financial Results: Revenue Quarterly Trend
Financial Results Revenue Quarterly Trend 4774 uA 162.0 155.3 51.8 rer 52.4 YIY Revenue YIY (exc. divested entities) Product 1% 4% 4058 118.4 ag System 1% 4% Consumables 1% 3% Service 1% 1% ais Q2"8 Q318 418 aig Customer Support 1% 2% mService Product
Slide 9: Financial Results: Gross margin trends
Financial Results Gross margin trends GAAP 56.5% 58.0% 55.0% 55.6% suse 49.2% 49.1% 48.7% 49.1% 49.2% Q118 Q218 Q3 18 Q4"18 Q119 =—@ Total Gross M, Non-GAAP 61.7% 60.6% 61.8% 59.6% 58.9% 52.8% 52.5% 52.1% 52.2% 52.0% oo rr 36.2% 36.3% 34.4% 34.5% 28 Q118 Q2"18 Q3 "18 Q418 Qi19
Slide 10: Operating expenses and operating margin trends
Financial Results Operating expenses and operating margin trends 3% Bono a oN 5.0% 44% Qi 18 Qi19 3.2% ate GAAP Operating Expenses AA%, 2.1% 2.1% 3% AM% = Qi'18 Q2"18 Q3"18 418 Qi'19 —®— GAAP Operating Margin —®=— Non-GAAP Operating Margin Qi 18 Q1i19 Non-GAAP Operating Expenses
Slide 11: Balance sheet summary and cash flow from operations
Balance sheet summary and cash flow from operations 27.1 Cash and Cash Equivalents 346.5 393.2 367.8 Accounts Receivable 119.8 138.1 128.4 4.6 Inventories 120.1 123.5 131.7 Net Working Capital 450.2 5084 487.1 ore ene Cash Flow From Operating Activities
Slide 12: Lilach Payorski, CFO: Financial Summary
Lilach Payorski CFO Financial Summary « Pleased with our first quarter results « Encouraged by the continuation of the strong performance in North America over the last several quarters - both systems and materials « Results reflect continuation of strong non-GAAP earnings and success in maintaining
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Slide 14: Updates
Q1 2019 Updates ae David Reis, Vice Chairman
Slide 15: Q1 Update — Strong Growth in North America
Q1 Update — Strong Growth in North America * Growth in high-end Fortus FDM production systems * Strong quarter for F123 platform and continued interest in new Elastomer TPU materials-enabled edition * Continue to see increased adoption in aerospace, automotive, and healthcare & dental segments « Ple
Slide 16: Recent New Product Introductions
Recent New Product Introductions F120 3D Printer * Industrial-grade system targeting customers new to additive manufacturing that offers the benefits of our F123 platform at an affordable price for designers, engineers, and educators V650 Flex Stereolithography 3D Printer + Large-scale system with o
Slide 17: Aerospace Update
Aerospace Update Stratasys FDM technology achieves National Center for Advanced Materials Performance (NCAMP) qualification from the National Institute of Aviation Research (NIAR) + NCAMP process recognized by FAA and EASA + NIAR has published official design allowables documenting the performance a
Slide 18: Revenue and Earnings Guidance
Revenue and Earnings Guidance -GAAP Guidance ($ in millions, except per share data) Revenue (M) Revenue $670 to $700 $670 = $700 GAAP Net Loss ($22) to ($12) (1) Stock-Based Compensation Expense $20 to $22 GAAP Diluted EPS (2) Intangible Assets Amortization Expense $32 $ (0 -40) -$ ( 0.2 2) (3) Reor
Slide 19: Thank You
Thank You Make it Better. efratadn ic
Slide 20: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation Results of operations Stratasys Ltd ded Three Months Ended March 34, 207 (Gross Promt ‘376.457 ‘$4,252 380.700 ‘375.650 36,500 381,240 [Operating income (Loss) (1.2) @27) 10,075 6.804 (6.408) 11.387 4,922 [Net income (Loss) attributable to Stratasys Lid. (1.2.3) (2.27