Stratasys, Ltd. · NASDAQ:SSYS
Stratasys — Q1 2023 Earnings Presentation
22 slides from Stratasys's earnings presentation, May 16, 2023
Slide 1: Q1 2023 Results
Q1 2023 Results Speakers Dr. Yoav Zeif, CEO Eitan Zamir, CFO Yonah Lloyd, CCO & VP IR May 16, 2023
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=f4rFQOPp 2 2
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: Nano Dimension Update
Nano Dimension Update ▪ Stratasys’ Board received three unsolicited proposals to acquire Stratasys for $18.00, $19.55, and $20.05 per share in cash. ▪ After careful review, the Board unanimously rejected each proposal because they substantially undervalue Stratasys in light of the Company’s standalo
Slide 6: CEO Remarks: Excellent Q1 Results
Dr. Yoav Zeif CEO ▪ Excellent Q1 results against a challenging environment and on track for $1 billion revenue by 2026 with substantial profitability ▪ Strong printer utilization drove record consumables and customer service revenue ▪ Growing trends of onshoring, de-globalization driving opportuniti
Slide 7: Q1 Highlights: New Dental Solutions for $50B Dental Parts Industry
Q1 Highlights: New Dental Solutions for $50B Dental Parts Industry First Monolithic, Multi-Color 3D New Entry-Level Printer for Smaller Printed Dentures Solution Dental Labs ▪ TrueDent FDA-cleared resin works ▪ J3 DentaJet 3D printer targets SMB labs exclusively with J5 DentaJet printer representing
Slide 8: Q1 Highlights: Growing New Markets in Personalized Healthcare
Q1 Highlights: Growing New Markets in Personalized Healthcare Patient-Specific Solution Delivered Industrial-Scale BioPrinting as Cloud Service ▪ Stratasys and CollPlant unite technologies to ▪ Agreement with Ricoh USA provides on- develop solution for $2.6 billion addressable demand 3D-printed anat
Slide 9: Q1 Highlights: Executing Our Manufacturing Growth Strategy
Q1 Highlights: Executing Our Manufacturin Growth Strategy German Manufacturer Adds 4 More Covestro AM Acquisition Closed H350 3D Printers ▪ Expands materials portfolio for stereolithography, DLP, and powders - 60 ▪ Götz Maschinenbau fleet now includes 6 new materials systems ▪ Immediately accretive
Slide 10: Q1 Highlights: Adding Value and Recurring Software Revenue
Q1 Highlights: Adding Value and Recurring Software Revenue Introducing GrabCAD Industry 4.0 Project OpenAM Software Now Print Pro ▪ Successfully integrated GrabCAD Generally Available platform into Factory+ Industry ▪ Annual license fee, initially for ▪ Materials flexibility and access to 4.0 archit
Slide 11: CFO Remarks
CFO Remarks Eitan Zamir CFO ▪ Solid results in an increasingly challenging environment ▪ Tight OPEX management and right infrastructure helped maintained gross and operating margins ▪ Efficiency efforts are paying off across the platform
Slide 12: Financial Results
Financial Results GAAP Non-GAAP Q1-22 Q1-23 Change Y/Y Q1-22 Q1-23 Change Y/Y Total Revenue 163.4 149.4 -8.6% 163.4 149.4 -8.6% Gross Profit 69.7 65.4 (4.3) 77.4 70.7 (6.7) ▪ % Margin 42.6% 43.8% 1.2% 47.3% 47.3% 0.0% Operating Income (Loss) (19.6) (16.8) 2.8 2.0 1.5 (0.5) ▪ % Margin -12.0% -11.2% 0
Slide 13: Strong Printer Utilization Drove Record Consumables Revenue
Strong Printer Utilization Drove Record Consumables Revenue Revenue of $149.4 million down 8.6% YoY. Product revenue down 10.7% vs. Q1 2022, Services revenue down 3.9% vs. Q1 2022, OEM business down 0.9% at constant down 5.1%, adjusted for divestitures and at up 3.9% adjusted for Stratasys Direct an
Slide 14: Gross Margins Demonstrate Focus on Cost Savings
Gross Margins Demonstrate Focus on Cost Savings GAAP and Non-GAAP margins negatively impacted by FX, positively impacted by MakerBot carve-out GAAP Non-GAAP Product Gross Margin Total Gross Margin Service Gross Margin 50.1% 49.4% 56.7% 47.5% 47.2% 47.7% 53.7% 53.6% 54.7% 53.8% 43.6% 43.1% 43.8% 48.5
Slide 15: Operating Expenses Reflects Effective Scalability
Operating Expenses Reflects Effective Scalability GAAP Non-GAAP $7.1 million yr./yr. GAAP expenses operating operating expenses operating expenses (absolute and as a percentage of revenues) reduction and $6.1 (absolute and as a percentage of revenues) 54.6% 55.0% million non-GAAP 46.1% 46.3% operati
Slide 16: Seventh Straight Q of Positive Adj. EPS
Seventh Straight Q of Positive Adj. EPS Decreased non-GAAP Q1 operating income GAAP operating loss Non-GAAP operating income (1.2% in Q1’22 vs 1% in Q1’23 out of total revenue) reflects decline in overall 2.0 revenues, partially offset 1.5 (19.6) (16.8) by 8.2% non-GAAP Q1’22 Q1’23 operating expense
Slide 17: Fortified Balance Sheet and Responsible Use of Cash
Fortified Balance Sheet and Responsible Use of Cash Cash use was primarily driven by increased inventory purchases. We expect our inventory levels Balance sheet items Cash flow from to decline in the back half of operating activities this year, contributing Q1-22 Q4-22 Q1-23 towards returning to pos
Slide 18: 2023 – Raising Revenue Outlook
2023 – Raising Revenue Outlook Revenue Gross Margins Sequential growth through the year Improving, with stronger 2H ▪ 2023 range: $630M-$670M ▪ 2023 range: 48.0%-49.0% ▪ Raised from $620M-$670M ▪ Targeting above 50% in 2024 ▪ 2H notably stronger than 1H Operating Expenses Operating Margins Improving
Slide 19: Medium Term Outlook
Medium Term Outlook 2024 ▪ Non-GAAP gross margins above 50% ▪ Positive free cash flow 2026 ▪ Revenues exceeding $1 billion ▪ Adjusted EBITDA over 15% of revenues 1 9
Slide 20: CEO Summary
CEO Summary Dr. Yoav Zeif CEO ▪ Outlook for 3D printing growth is strong ▪ Stratasys is best positioned to lead polymer 3DP with the broadest hardware, software and materials portfolio ▪ Seeing more strategic opportunities at the executive leadership levels of our customers ▪ Proven our value with i
Slide 21: Thank You
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Slide 22: Appendix
Appendix Three months ended March 31, 2023 Three months ended March 31, 2022 GAAP Adjustments Non-GAAP GAAP Adjustments Non-GAAP Gross Profit (1) $65,395 $5,299 $70,694 $69,677 $7,689 $77,366 Operating income (Loss) (1,2) (16,797) 18,315 1,518 (19,584) 21,607 2,023 Net income (Loss) (1,2,3) (22,224)