Slide 1: Stratasys Q1 2022 Results
1 Stratasys Q1 2022 Results Speakers Dr. Yoav Zeif , CEO Eitan Zamir, CFO Yonah Lloyd, CCO & VP IR May 16, 2022
Slide 2: Conference Call and Webcast Details
2 Stratasys 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://services.choruscall.com/mediaframe/webcast.html? webcastid=QiDdBAQK
Slide 3: Forward-looking Statements
3 Stratasys 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 2022, are forward - looking statements refle
Slide 4: Use of Non-GAAP Financial Information
4 Stratasys Use of Non – GAAP Financial Information 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 shareholders of our C
Slide 5: Welcome
5 Stratasys Dr. Yoav Zeif CEO Welcome Strongest Q1 in 6 years All key businesses showed improvement compared to pre - COVID Q1 2019 Q1 revenue of $163.4 million up 22% vs. Q1 2021 Systems revenue grew 37 % vs. Q1 2021 Balance sheet remains strong – over $475 million in cash and equivalents
Slide 6: Penetrating Further into Industry Applications
6 Stratasys Penetrating Further into Industry Applications Q1 & Year - to - Date Highlights Collaborated with Lockheed Martin to qualify PEKK - based Antero CN03 for space - ready parts Radford is now the second auto OEM using all five Stratasys technologies across the entire product lifecycle chain
Slide 7: Key Milestones Achieved
7 Stratasys Key Milestones Achieved Recent Highlights Intensified the Company’s focus on industrial, healthcare and production - scale Created New Entity: MakerBot + Ultimaker Published First ESG & Sustainability Report Margin accretive benefit upon closing Investment offers access to entry - level
Slide 8: Recent Highlights
8 Stratasys Experience Stratasys: Manufacturing Event Adding PA - 12 and polypropylene for H350 - furthering SAF competitive superiority Upgraded F123 series with Composite - Ready F190CR and F370CR 3D printers Secured first Validated FDM materials from third - party partners Origin One Local for Go
Slide 9: Leading Customers
9 Stratasys Leading Customers Ongoing Permanent Shift from Traditional to Additive Manufacturing Customer Success Goal: Grow % of BOM on UAVs from <1% up to 50% Reducing tooling costs by 80% vs. machined parts Reducing spare part lead times by 95%
Slide 10: Additive Manufacturing Forward
10 Stratasys “Additive Manufacturing Forward” provides incentives for SMB manufacturers to make critical investments in 3D printing Raytheon, Lockheed Martin, GE Aviation, Honeywell and Siemens make clear public commitment to purchase more 3D printed parts US Government Initiative Aims to Boost Addi
Slide 11: Q1 Financial Results
11 Stratasys Q1 Financial Results Eitan Zamir CFO Strong start to 2022 Q1 revenue growth driven by 37% growth in system sales Growth + improving margins position Stratasys to build momentum throughout 2022 and beyond
Slide 12: Improving Financial Results – Q1 2022
12 Stratasys Note: $ in millions unless noted otherwise. All numbers and percentages rounded GAAP Non - GAAP Q1 - 21 Q1 - 22 Change Y/Y Q1 - 21 Q1 - 22 Change Y/Y Total Revenue 1 34.2 3 4 21.8% 134.2 1 3.4 21.8% Gross Profit 55.6 69 . 7 14 . 1 62.6 77.4 1 4 . 8 • % Margin 41.4% 42.6% 1 . 2% 46.7% 47
Slide 13: Strong Revenue Growth – Q1 2022
13 Stratasys Strong Revenue Growth – Q1 2022 Note: $ in millions unless noted otherwise. All numbers and percentages rounded Quarterly Trend Revenue Growth – Q1’22 90.3 100.3 108.9 118.0 113.1 43.9 46.7 50.1 49.0 50.3 134.2 147.0 159.0 167.0 163.4 Q1' 21 Q2' 21 Q3' 21 Q4' 21 Q1' 22 Product Service R
Slide 14: Increasing Gross Margins – Q1 2022
14 Stratasys Increasing Gross Margins – Q1 2022 All percentages rounded 41.4% 43.0% 42.9% 43.7% 42.6% 48.1% 50.4% 49.7% 49.6% 47.5% 27.8% 27.2% 28.2% 29.6% 31.7% Q1 '21 Q2 '21 Q3 '21 Q4 '21 Q1 '22 46.7% 47.5% 48.2% 48.7% 47.3% 55.4% 56.4% 57.0% 56.2% 53.7% 28.7% 28.6% 29.2% 30.6% 33.1% Q1 '21 Q2 '21
Slide 15: Controlling Operating Expenses – Q1 2022
15 Stratasys Controlling Operating Expenses – Q1 2022 Note: $ in millions unless noted otherwise. All numbers and percentages rounded Non - GAAP operating expenses GAAP operating expenses 73.9 89.3 Q1'21 Q1'22 65.2 75.3 Q1'21 Q1'22 Lowest Q1 non - GAAP OpEx as percentage of revenues in seven years
Slide 16: Enhanced Results – Q1 2022
16 Stratasys Enhanced Results – Q1 2022 Note: $ in millions unless noted otherwise. All numbers and percentages rounded (18.4) (19.6) Q1'21 Q1'22 (2.6) 2 Q1'21 Q1'22 (18.9) (20.9) Q1'21 Q1'22 (3.8) 1.2 Q1'21 Q1'22 Operating income and net income reflect business scalability and operational efficienc
Slide 17: Fortified Balance Sheet and Cash Flow – Q1 2022
17 Stratasys Fortified Balance Sheet and Cash Flow – Q1 2022 Note: $ in millions unless noted otherwise. All numbers and percentages rounded Balance sheet items Cash flow from operating activities 22.8 (16.1) Q1' 21 Q1' 22 Strong balance sheet at $475.6M cash and equivalents Cash use tied to deliber
Slide 18: 2022 Outlook
18 Stratasys 2022 Outlook • 2022 - $685M - $695M o Sequential quarterly growth cadence • Q2 growth percentage of low to mid - teens vs Q2 2021 Revenue – Double - Digit Growth • 2022 $20M - $25M OpEx expansion in growth drivers • OpEx as a percent of revenue expected to remain flat or even improve sl
Slide 19: Key Takeaways
19 Stratasys Key Takeaways Executing on our plan to expand our leadership position in polymer 3D printing New technology offerings, expanded materials, software solutions and talented team position us for excellence Relentlessly focused on execution to drive growth Dr. Yoav Zeif CEO
Slide 20: Thank You Q&A
20 Stratasys Thank You Q&A
Slide 21: Non-GAAP Reconciliation – Three Months Ended March 31
21 Stratasys Three months ended March 31, 2022 Three months ended M arch 31 , 2021 GAAP Adjustments Non - GAAP GAAP Adjustments Non - GAAP Gross Profit (1) $55,577 $7,069 $62,646 Operating income (Loss) (1,2) (18,358) 15,785 (2,573) Net income (Loss) attributa