Stratasys, Ltd. · NASDAQ:SSYS
Stratasys — Q2 2019 Earnings Presentation
19 slides from Stratasys's earnings presentation, Jul 31, 2019
Slide 1: Financial Results Conference Call
Financial Results Conference Call strata: July 31, 2019 = Stratasys
Slide 2: Conference call & webcast details
Q2 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: https://edge.media-server.com/mmc/p/o8gpSuieb. Live dial-in information Primary dial-in: +1-866-394-5776
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 concerning its expected Fesute for 2010, ae forward-looking statements reflecting managements curre
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 fare non-GAAP financial measures. Our management belaves that financial measures are useful information for investors and shareholders of our company in ‘gauging our results of operations (x)
Slide 5: Elan Jaglom: Opening Remarks
Elan Jaglom Interim CEO Opening Remarks * Q2 results reflect continuation of strong Americas performance for systems, consumables, and services * Offset by impact of economic weakness in EMEA « Focus on operational efficiency resulting in positive earnings and profits + Investing in new products to
Slide 6: Financial Update
Finaacial Update Lilach Payorski— CFO
Slide 7: Financial Results
Financial Results GAAP Non-GAAP Q2-19 Change Y/Y Q2-19 Change Y/Y Total Revenue Gross Profit 89.4 85.6 (7) % Margin 52.5%! 52.5% 0.0%! Operating Income (Loss) 10.6 94 (1.6) % Margin 6.2%! 5.5%! -0.7%| Pre-Tax Income (Loss) 10.5 10.8 03 % Margin 6.2%! 6.6%! 0.4% Tax Expenses 13 2.2 08 EBITDA 167 16.1
Slide 8: Financial Results: Revenue
Financial Results Revenue Quarterly Trend +08 177A . 162.0 ror 163.2 Revenue Growth — Q: 518 524 eS oT Revenue YIY (exc. divested entities & FX) Product T% -3% 118.4 109.6 nea System -10% 6% Consumables A% 1% Service +2% 43% e218 9318 4 4a44s 4649 «an 49 Customer Support 42% +4% mService Product ‘Si
Slide 9: Financial Results: Gross margin trends
Financial Results Gross margin trends GAAP 58.0% 57.3% 55.0% ee 54.6% 49.1% 48.7% 49.1% 49.2% 49.7% o—__.___+____+—* 35.7% 36.1% 34.2% 33.9% 30.9% 218 318 418 aig 0219 Non-GAAP os 61.8% 61.1% a 52.5% 52.1% 52.2% 52.0% 52.5% o_.____+_____+—_—* 36.2% 34.5% 36.3% 24.5% 31.3% 218 318 418 aig 219
Slide 10: Operating expenses and operating margin trends
Financial Results Operating expenses and operating margin trends 6% — 85.6 80.4 som a , 5.0% Pe 5.5% 218 Q219 GAAP Operating Expenses ae 0.5% 3% Aa —, 1% 2.1%, 78.7 aan a278 318 aat8 19249 —®- GAAP Operating Margin —®= Non-GAAP Operating Margin 218 Q2"19 Non-GAAP Operating Expenses Sin millions unle
Slide 11: Balance sheet summary and cash flow from operations
Financial Results Balance sheet summary and cash flow from operations 13.0 Q2-18 Q1-19 Q2-19 Cash and Cash Equivalents 346.7 367.8 366.3 Accounts Receivable 123.5 128.4 131.5 Inventories 117.0 131.7 147.8 “3.8 Net Working Capital 453.1 487.1 505.9 218 219 Cash Flow From Operating Activities
Slide 12: Lilach Payorski: Financial Summary
Lilach Payorski CFO Financial Summary + Pleased with year-over-year growth in Americas systems, consumables, and services, offset by the general economic conditions in EMEA * Continuation of strong non-GAAP earnings, demonstrating the success of our ongoing effort to maintain operational discipline
Slide 13: heer
heer ~ -Elan Jaglom, Interim CEO
Slide 14: Updates
Q2 2019 Updates i ae David Reis, Vice Chairman
Slide 15: Q2 2019 Update — Strong Growth in Americas
Q2 2019 Update — Strong Growth in Americas Growth in system, consumables and services in Americas Pleased with North American Aerospace performance + Strong sales of production-focused 3D printers and materials + Several large deals with top OEMs as well as adoption by Tier 1 and Tier 2 suppliers *
Slide 16: Innovation and New Product Introductions
Innovation and New Product Introductions Recent introductions: + F120 and V650 + Expect to see impact ramp in H2 2019 Planned announcements in H2 2019 and 2020 include: wi + Major developments in FDM and PolyJet + Additional new materials and software offerings to broaden range of solutions + Detail
Slide 17: Revenue and Earnings Guidance
Revenue and Earnings Guidance Revenue (M) $670 - $700 GAAP Diluted EPS $(0.31) - $(0.05) Non-GAAP Diluted EPS $0.55 - $0.70 in millions unless noted otherwise Reconci ($ in millions, except per share data) Revenue GAAP Net Loss (1) Stock-Based Compensation Expense (2) Intangible Assets Amortization
Slide 18: Thank You
Thank You vee it asin (PA te et ed etrataaic
Slide 19: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation Results of operations Stratasys Ltd = Three Months Ended June 30, 2018 (Grose Prot (i) $81,167 34441 385.608, 383,647 $6,708 380,355 (Operating income (Lesa) (7.2) 205 3246 2051 (1.928) 12.548 10810 Netincome (Loss) attibutabie fo Statasys Lid. (72.3) 1.182 7372 3524