Slide 1: Q4 and FY 2023 Results
Q4 and FY 2023 Results Speakers Dr. Yoav Zeif, CEO Eitan Zamir, CFO Yonah Lloyd, CCO & VP IR March 7, 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=cZzaGlQr 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 ▪ Profitable results in a CapEx-constrained environment ▪ Another record Consumables quarter, testament to strong usage ▪ Tenth consecutive quarter of adjusted profitability reflects business model discipline that differentiates Stratasys ▪ Laying foundation for meaningful use-case
Slide 6: Q4 Customer Success: Industrial
Q4 Customer Success: Industrial Furthering FDM leadership Daimler Truck North Whirlpool becomes Neo Formula One penetration – with innovative new F3300 America adds H350 to customer multi-unit sales to Toyota, McLaren, others Stratasys fleet Double the speed, greater PartsToGo Service accuracy, focu
Slide 7: Q4 Dental and Medical Advances
Q4 Dental and Medical Advances Dental – Accelerated Growth Coming Medical – Imaging and Surgical Innovation ▪ One of the largest and most exciting growth avenues for ▪ Partnership with Siemens Healthineers for a landmark research the 3D printing industry project on advanced medical imaging phantoms
Slide 8: Q4 Software and Materials Expansion
Q4 Software and Materials Expansion Monetizing GrabCAD First “Weatherability” Material ▪ GC has 40K+ users – continuing to add recurring revenue streams ▪ Origin One DLP for automotive parts manufacturing ▪ Early success with GC Print Pro, achieving faster, more accurate and ▪ Somos WeatherX 100, ou
Slide 9: CFO Remarks
Eitan Zamir CFO CFO Remarks ▪ Achieved solid results in the fourth quarter against what has continued to be a challenging backdrop of adverse macroeconomic factors and related pressures ▪ Confident that the high level of demand we are seeing in our customer engagements will translate into meaningful
Slide 10: Financial Results
Financial Results GAAP Non-GAAP Q4-22 Q4-23 Change Y/Y Q4-22 Q4-23 Change Y/Y Total Revenue 159.3 156.3 -1.9% 159.3 156.3 -1.9% Gross Profit 68.6 69.8 1.2 77.1 76.3 (0.8) ▪ % Margin 43.1% 44.7% 1.6% 48.4% 48.8% 0.4% Operating Income 1.6 5.7 4.1 5.1 2.0 (3.1) ▪ % Margin 1.0% 3.6% 2.6% 3.2% 1.3% -1.9%
Slide 11: Q4 2023 Revenue
Q4 2023 Revenue ▪ Revenue of $156.3 million, up 1.3% excluding divestitures from Stratasys Direct (down 1.9% vs. Q4 2022 as reported) ▪ Product revenue down 0.7% vs. Q4 2022. Consumables revenue of $63.0M up 11.9% ▪ Services revenue up 3.6% excluding divestitures from Stratasys Direct (down 4.6% vs.
Slide 12: FY 2023 Revenue
FY 2023 Revenue ▪ Revenue of $627.6 million up 1.3% excluding MakerBot and Stratasys Direct divestitures (down 3.7% vs. 2022 as reported) ▪ Product revenue was down 1.1% excluding MakerBot (down 4.1% vs. 2022 as reported) ▪ Services revenue up 1.3% excluding Stratasys Direct divestments (down 2.8% v
Slide 13: Gross Margins Improving
Gross Margins Improving Gross margins expected to continue improving with revenue growth GAAP Non-GAAP Product Gross Margin Total Gross Margin Service Gross Margin 49.4% 47.7% 47.2% 47.4% 47.2% 54.7% 53.8% 52.5% 52.6% 52.3% 43.1% 43.8% 44.7% 41.5% 48.4% 47.3% 48.5% 48.3% 48.8% 40.5% 38.4% 40.4% 39.8
Slide 14: Q4 Operating Expenses Up Due Primarily To Covestro Acquisition
Q4 Operating Expenses Up Due Primarily To Covestro Acquisition GAAP Non-GAAP operating expenses operating expenses (absolute and as a percentage of revenues) (absolute and as a percentage of revenues) 42.1% 41.0% 45.2% 47.5% 67.1 72.0 74.3 64.1 Q4'22 Q4'23 Q4'22 Q4'23 Note: $ in millions unless note
Slide 15: Tenth Straight Quarter of Positive Adjusted EPS
Tenth Straight Quarter of Positive Adjusted EPS Non-GAAP operating income GAAP operating gain (3.2% in Q4’22 vs 1.3% in Q4’23 out of total revenue) 5.7 5.1 1.6 2.0 Q4’22 Q4’23 Q4’22 Q4’23 Non-GAAP EBITDA GAAP net loss (6.7% in Q4’22 vs 4.9% in Q4’23 out of total revenue) (2.4) 10.7 7.7 (15.0) Q4’22
Slide 16: Healthy Balance Sheet Positioned for Opportunities
Healthy Balance Sheet Positioned for Opportunities Balance sheet items Cash flow from operating activities* Q4-22 Q3-23 Q4-23 Cash and Cash (7.7) Equivalents and 327.8 184.6 162.6 (18.1) Short-term deposits (61.6) Accounts Receivable 144.7 164.1 172.0 (75.4) Inventories 194.1 197.4 193.0 Q4-22 Q4-23
Slide 17: 2024 Outlook
2024 Outlook $630M-$645M 49.0%-49.5% $292M-$297M Revenue Non-GAAP Operating Compare to ~$616M 2023 revenue excluding Gross Margins divestitures and annualizing Covestro Expenses 2.5%-3.5% $0.12-$0.19 $40M-$45M $20M-$25M EPS-diluted-adjusted Non-GAAP Operating ($1.24)-($1.01) EBITDA-adjusted CAPEX Ma
Slide 18: CEO Summary
Dr. Yoav Zeif CEO CEO Summary ▪ Thanks to our global teams for their professionalism and dedication to help drive continued profitability as our business grows, creating long term value for all our stakeholders ▪ Particularly proud of our Israeli employees and families, many of whom were called to m
Slide 19: THANK YOU.
THANK YOU. 19 Make additive work for you™
Slide 20: Appendix
Appendix Three months ended December 31, 2023 Three months ended December 31, 2022 GAAP Adjustments Non-GAAP GAAP Adjustments Non-GAAP Gross Profit (1) $69,758 $6,565 $ 76,323 $ 68,648 $ (8,423) $ 77,071 Operating income (Loss) (1,2) 5,674 -3,659 2,015 1,596 3,456 5,052 Net income (Loss) (1,2,3) (14