Stratasys, Ltd. · NASDAQ:SSYS
Stratasys — Q2 2021 Earnings Presentation
22 slides from Stratasys's earnings presentation, Aug 5, 2021
Slide 1: Second Quarter 2021 Results
Second Quarter 2021 Results August 5th, 2021 Speakers Dr. Yoav Zeif – CEO Lilach Payorski – CFO Yonah Lloyd – CCO / VP Investor Relations
Slide 2: Conference Call & Webcast Details
US Toll - Free dial - in: 1 - 877 - 407 - 0619 International dial - in +1 - 412 - 902 - 1012 Live webcast and replay: https://78449.themediaframe.com/dataconf/productusers/ssys/mediaframe/44880/indexl.html Conference Call & Webcast Details
Slide 3: Forward-Looking Statements
Forward - Looking Statements 3 Cautionary Statement Regarding Forward - Looking Statements The statements in this press release regarding Stratasys ' strategy, and the statements regarding its projected future financial performance, including the financial guidance concerning its expected results fo
Slide 4: Use of Non-GAAP Financial Information
Use of Non - GAAP Financial Information 4 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 investor
Slide 5: CEO Opening Remarks
CEO Opening Remarks 5 Our growth is accelerating as the industry shifts from prototyping to mass production and Stratasys offers the most innovative technologies for the fastest - growing manufacturing applications. 25% year - over - year revenue growth, highlighted by 32% HW and 39% Consumables gro
Slide 6: Second Quarter 2021 Highlights: Manufacturing Experience Event
Second Quarter 2021 Highlights 6 6 Manufacturing Experience Event • 4,500+ customers and partners joined our live event on Additive Manufacturing 2.0 offerings: • Stratasys Origin One: Top - to - bottom upgrade since acquisition. • SAF - powered H350: New production - scale powder bed polymer soluti
Slide 7: Second Quarter 2021 Highlights
Second Quarter 2021 Highlights 7 7 New J5 MediJet • All - in - one solution for multi - use, multi - material printing • Biocompatible and sterilizable materials • 510k - approved with leading medical segmentation software Dental growth • 3 technologies – PolyJet , Origin P3, stereolithography – now
Slide 8: Software Continues to Expand / Monetization of GrabCAD Shop
Software Continues to Expand / Monetization of GrabCAD Shop Online Customer Hub Launches 8 8 GrabCAD Partner Program • 6 software partners announced in first six months. • Latest is Teton Simulation, using new GrabCAD DFAM SDK. • License subscriptions enable customers to connect to all our partners.
Slide 9: Competitive Advantages to Lead Polymer Additive Manufacturing
Competitive Advantages to Lead Polymer Additive Manufacturing 9 Broadest technology offering in sector Deep application engineering expertise Unmatched go - to - market infrastructure Resilient business model designed to scale Cloud - based software partner ecosystem Five best - in - class technolog
Slide 10: Financial Highlights
Financial Highlights Lilach Payorski CFO 25% growth exceeded revenue outlook Produced 32% growth in systems and 39% in consumables year over year Generated $5.6m in OCF Updated outlook 10
Slide 11: Financial Results – Second Quarter 2021
Financial Results – Second Quarter 2021 11 GAAP Non - GAAP Q 2 - 20 Q 2 - 21 Change Y/Y Q 2 - 20 Q 2 - 21 Change Y/Y Total Revenue 117 . 6 147 . 0 25 .0% 1 17 . 6 1 47 . 0 25 .0% Gross Profit 43.7 63.3 19.6 53 .3 6 9 . 9 16.6 % Margin 37 . 2 % 4 3 . 0 % 5.8 % 4 5 .4% 4 7 . 5 % 2.1 % Operating Income
Slide 12: Quarterly Trend
12 Note: $ in millions unless noted otherwise. All numbers and percentages rounded. Quarterly Trend 73.9 83.5 99.2 90.3 100.3 43.7 44.3 43.2 43.9 46.7 117.6 127.9 142.4 134.2 147.0 Q2' 20 Q3' 20 Q4' 20 Q1' 21 Q2' 21 Product Service Revenue Growth – Q2’21 Revenue Y/Y Y/Y (exc. FX) Product 35.8% 32.6%
Slide 13: Gross Margins Improved from Higher Systems and Consumables
Gross Margins Improved from Higher Systems and Consumables Still Challenged by Rising Logistics Costs and NPI Ramp - up 13 All percentages rounded. GAAP Non - GAAP 37.2% 38.9% 46.4% 41.4% 43.0% 45.9% 43.3% 55.0% 48.1% 50.4% 22.5% 30.6% 26.6% 27.8% 27.2% Q2 '20 Q3 '20 Q4' 20 Q1 '21 Q2 '21 45.4% 46.8%
Slide 14: Operating Expenses Improvement Trend Ongoing
Operating Expenses Improvement Trend Ongoing 14 73.0 86.0 Q2'20 Q2'21 Q2'20 Q2'21 17.8% 61.4 72.5 Q2'20 Q2'21 Q2'20 Q2'21 Non - GAAP Operating expenses . % GAAP Operating expenses Note: $ in millions unless noted otherwise. All numbers and percentages rounded. 58.5% 62.1% 52.2% 49.3%
Slide 15: Operating Income and Net Earnings Improvement
Operating Income and Net Earnings Improvement 15 GAAP Operating Loss Non - GAAP Operating Loss (29.3) (22.7) Q2'20 Q2'21 (8.1) (2.6) Q2'20 Q2'21 GAAP Net Loss Non - GAAP Net Loss (28.0) (20.2) Q2'20 Q2'21 (7.4) (1.6) Q2'20 Q2'21 Note: $ in millions unless noted otherwise. All numbers and percentages
Slide 16: Balance Sheet Strengthened to $523m Cash and Equivalents
Balance Sheet Strengthened to $523m Cash and Equivalents 16 Balance Sheet Items Cash Flow From Operating Activities (9.7) 5.6 Q2' 20 Q2' 21 Q2 - 20 Q1 - 21 Q2 - 21 Cash and Cash Equivalents and Short - term deposits 313.0 530.4 522.7 Accounts Receivable 102.2 102.8 110.0 Inventories 164.6 124.2 124.
Slide 17: 2021 Outlook
2021 Outlook 17 Revenue in the third quarter 2021 is expected to grow 17% - 18% compared to third quarter 2020. Fourth quarter revenue is expected to be sequentially higher. Operating expenses for 2021 are expected to be approximately $30M higher than 2020, reflecting the return to full - time work
Slide 18: CEO Summary
18 CEO Summary Q2 saw accelerated growth across the business. Incremental growth coming from new platforms launching in Q4. Executing on our strategy to lead polymer 3D Printing and create long - term value.
Slide 19: Thank You: Q&A
Thank You: Q&A 19
Slide 20: Appendix
Appendix 20
Slide 21: GAAP to Non-GAAP Reconciliation
GAAP to Non - GAAP Reconciliation 21 Results of operations Stratasys Ltd Three months ended June 30, 2021 Three months ended June 30 , 2020 GAAP Adjustments Non - GAAP GAAP Adjustments Non - GAAP Gross Profit (1) $63,270 $6,616 $69,886 $ 43,736 $9,612 $53,348 Operating income (Loss) (1,2) (22,724) 2
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