Slide 1: Q2 2024 Results
Q2 2024 Results Speakers Dr. Yoav Zeif, CEO Eitan Zamir, CFO Yonah Lloyd, CCO & VP IR August 29, 2024 Make additive work for you
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.html?webcastid=2xc8Kb5W Make additive work for you
Slide 3: Forward-Looking Statements
Forward-Looking Statements Cautionary Statement Regarding Forward- Looking Statements 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 results for
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 and shareh
Slide 5: Dr. Yoav Zeif, CEO
Dr. Yoav Zeif CEO ▪ Improved Gross Margins and maintained healthy balance sheet despite softness in hardware sales ▪ Resilient business model through macro challenges of reduced capital equipment spending ▪ Consumables growth reflects strong utilization of our systems and demonstrates the power of t
Slide 6: Q2 Achievements
Q2 Achievements During and subsequent to the second quarter, we achieved a number of milestones and new product introductions Partnership with aviation manufacturing pioneer AM Introduced H350 v1.5 Launched J5 Digital Initiated a 12-month clinical Craft, to enhance EASA- with new SAF High-Def Anatom
Slide 7: Software Update
Software Update GrabCAD Print Pro and GrabCAD Streamline GrabCAD Streamline Pro supports scaling 3D Pro are key software tools for print prep and printing for FDM and PolyJet customers in operations, now supporting FDM, SAF and prototypes, tooling, and end-use parts. PolyJet. Strong demand and numer
Slide 8: Post-Q2 Updates
Post-Q2 Updates Moving our US Dental is a major focus TrueDent offers a unique CollPlant collaboration in headquarters in Eden with a multibillion-dollar mono-block, full-color 3D pre-clinical trials, testing Prairie to a single, newer, TAM. Introduced DentaJet printing solution for innovative print
Slide 9: Strategic Initiatives to Unlock Shareholder Value
Strategic Initiatives to Unlock Shareholder Value Support efforts to retain and build on leadership in additive manufacturing Board review: Focused strategy: Realigning to Market Conditions: ▪ Adjusting our structure to better match current Board completed Penetration of additive manufacturing marke
Slide 10: Better Positioning Stratasys for the Long-Term
Better Positioning Stratasys for the Long-Term We are taking action to align costs with current conditions, build a long-term and significantly more profitable, cash-generating business, and stay agile during downturns, while being ready to respond quickly when customer spending returns Customer uti
Slide 11: Eitan Zamir, CFO
Eitan Zamir CFO ▪ Customers still facing ongoing macro challenges on CapEx spending weakness ▪ Gross margins improved, thanks in part to another strong quarter of consumables sales ▪ Continued relentless focus on cost-control Make additive work for you
Slide 12: Financial Results
Financial Results GAAP Non-GAAP Q2-23 Q2-24 Change Y/Y Q2-23 Q2-24 Change Y/Y Total Revenue 159.8 138.0 -13.6% 159.8 138.0 -13.6% Gross Profit 66.2 60.5 (5.7) 77.5 67.7 (9.8) ▪% Margin 41.5% 43.8% 2.3% 48.5% 49.0% 0.5% Operating Income (Loss) (33.7) (26.0) 7.7 5.0 (3.2) (8.2) ▪% Margin -21.1% -18.9%
Slide 13: Revenues – Strong Consumables Recurring Revenue
Revenues – Strong Consumables Recurring Revenue Quarterly Trend Revenues – Q2’24 Product Service 159.8 162.1 Revenue Y/Y Y/Y Adjusted* 156.3 144.1 138.0 Product - $93.6M -14.2% -14.2% 50.7 48.9 45.9 44.9 44.4 ▪ Systems - $29.0M -40.0% -40.0% ▪ Consumables - $64.6M 6.3% 6.3% 109.1 113.2 110.4 99.2 93
Slide 14: Gross Margins
Gross Margins GAAP Non-GAAP Product Gross Margin Total Gross Margin Service Gross Margin 55.5% 55.6% 52.3% 52.5% 52.6% 49.8% 50.0% 48.6% 49.0% 47.2% 47.4% 47.2% 48.5% 48.3% 48.8% 44.4% 43.8% 41.5% 44.7% 40.5% 40.4% 39.8% 38.4% 38.4% 35.2% 32.2% 33.4% 30.7% 29.0% 24.4% Q2 '23 Q3 '23 Q4 '23 Q1 '24 Q2
Slide 15: Operating Expenses
Operating Expenses GAAP Non-GAAP operating expenses operating expenses (absolute and as a percentage of revenues) (absolute and as a percentage of revenues) 62.5% 62.7% 45.4% 51.3% 99.9 86.5 72.5 70.9 Q2'23 Q2'24 Q2'23 Q2'24 Note: $ in millions unless noted otherwise. All numbers and percentages rou
Slide 16: Earnings
Earnings Non-GAAP operating income (loss) GAAP operating loss (3.1% in Q2’23 vs (2.3)% in Q2’24 out of total revenue) 5.0 (33.7) (26.0) (3.2) Q2’23 Q2’24 Q2’23 Q2’24 Non-GAAP EBITDA GAAP net loss (6.6% in Q2’23 vs 1.7% in Q2’24 out of total revenue) 10.6 (25.7) 2.3 (38.6) Q2’23 Q2’24 Q2’23 Q2’24 Non
Slide 17: Balance Sheet and Operating Cash Flow
Balance Sheet and Operating Cash Flow Balance sheet items Cash flow from operating activities Q2-23 Q1-24 Q2-24 Cash and Cash Equivalents and Short- 205.4 161.1 150.9 term deposits Accounts Receivable 156.3 155.3 150.5 (2.4) Inventories 211.2 195.1 196.5 (23.2) (75.4) (62.3) Net Working Capital 401.
Slide 18: 2024 Outlook Updated
2024 Outlook Updated $570M – $580M 48.7% – 49.0% $276M – $278M Revenue Non-GAAP Operating Gross Margins Q3 slightly higher than Q2 Expenses 0.5% – 1.0% $0.01 – $0.05 $24M – $27M $20M – $25M Non-GAAP Operating EPS-diluted-adjusted ($1.50)-($1.29) EBITDA-adjusted CAPEX Margins GAAP EPS diluted Make ad
Slide 19: Summary
Dr. Yoav Zeif CEO Summary ▪ New and exciting technology investment evidenced by the products we are bringing to market will accelerate adoption of additive manufacturing ▪ Inflection point as AM shifts from prototyping niche to a cornerstone of the manufacturing process – we continue to see signs of
Slide 20: Thank You
THANK YOU Make additive work for you
Slide 21: Appendix
Appendix Three months ended June 30, 2024 Three months ended June 30, 2023 GAAP Adjustments Non-GAAP GAAP Adjustments Non-GAAP Gross Profit (1) $60,500 7,175 $67,675 $66,222 11,283 $77,505 Operating income (Loss) (1,2) (26,043) 22,845 (3,198) (33,659) 38,666 5,007 Net income (Loss) (1,2,3) (25,743)