Stratasys, Ltd. · NASDAQ:SSYS
Stratasys — Q1 2017 Earnings Presentation
20 slides from Stratasys's earnings presentation, May 16, 2017
Slide 1: Stratasys Q1 2017
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Slide 2: Q1 2017 Conference and Webcast Details
Q1 2017 Conference and webcast Speakers Live Dial-in . Information details lan Levin Primary Dial-in: S39 855-319-2216 Lilach Payorski Interneonal cee 503-343-6033 Shane Glenn Participant VP, Investor Passcode: Relations 10010178 Live webcast and replay: http://ed ia i
Slide 3: Forward Looking Statement
Forward Looking Statement The statements in this presentation regarding Stratasys’ strategy, and the statements regarding its projected future financial performance, including the financial guidance concerning its expected results for 2017, are forward-looking statements reflecting management's curr
Slide 4: Use of Non-GAAP financial information
Use of Non-GAAP financial information The following non-GAAP data, 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 company in gauging our resu
Slide 5: Ilan Levin - CEO Opening Remarks
Ilan Levin - CEO Opening Remarks > Generating positive effect from focus on key vertical markets > Customer-centric approach is resulting in high-value application development with industry-leading manufacturing companies > Gaining greater insights into customer needs and requirements is unlocking v
Slide 6: Lilach Payorski - CFO Financial Update and Guidance
Lilach Payorski - CFO Shane Glenn — VP of Investor Relations Financial Update and Guidance
Slide 7: Financial Results
Financial Results Stratasys, Ltd. Non-GAAP Change Change Total Revenue sie79| $1632| -28%| $167.9] $1632] -28% Gross Profit 812] 769 43] 924| 835 9.0 % margin 48.3% | 47.1% | -8.3%| 55.1% | 51.2% | -9.7% | a (2ta)| (12.6) 84 40 40 4 Revenue 3% YOY _| 5, mata 12.5% | -7.7% 40.0% 24%} 25% 1.9% Pretax
Slide 8: Financial Results — Revenue
Financial Results — Revenue Stratasys, Ltd. Total Revenue — Quarterly Trend Product Revenue | 3% YOY © Product @ Service System Revenue J 11% YOY $119 $124 si10 $127 He Consumable Revenue 1 7% YOY Service Revenue J 2% YOY. 1 aie 216 316 416 a7 7% YOY Customer support ($ in millions unless noted othe
Slide 9: Financial Results — Gross Margin Trends
Financial Results — Gross Margin Trends Stratasys, Ltd. ais 0216 316 416 Qi7 611% | 40.4% Q116 Q2"6 O36 416 Qi47 @ Product Gross Margin @ Service Gross Margin @ Total Gross Margin str
Slide 10: Financial Results — Operating Margin Trends
Financial Results — Operating Margin Trends Stratasys, Ltd. Operating Exp. (GAAP) | 12% YOY. R&D Exp. (GAAP) J 2% YOY. SG&A Exp. (GAAP) J 16% YOY Operating Exp. (non-GAAP) | 10% YOY R&D Exp. (non-GAAP) 1 1% YOY SG&A Exp. (non-GAAP) | 14% YOY 45.9% [VALUE] [VALUE] 15.0% 14.2% 15.3% ai16 02:16 316 12.
Slide 11: Balance Sheet Highlights & Cash From Operations
Financial Results - Balance Sheet Highlights & Cash From Operations Stratasys, Ltd. ($ in millions) ae Cash from operating activities $31.6 $25.4 Selected balance sheet items ($ in millions) De Cash and Cash Equivalents $280.3 $297.2 Accounts Receivable, net 1204 1154 Inventories 1175 1160 Net Worki
Slide 12: Lilach Payorski - CFO Financial Summary
Lilach Payorski - CFO Financial Summary + Pleased with growth in recurring consumables and service contract revenue * Continued focus on operational performance, reflected by reduction in operating expenses + Focusing on investment in value-added solutions within key target markets, while aligning c
Slide 13: Revenue & Earnings Guidance
Revenue & Earnings Guidance Revenue (M) $645 - $680 $(1.00) - $(0.73) Non-GAAP Diluted EPS. $0.19 - $0.37 Reconciliation of GAAP to Non-GAAP Guidance {$ in milions, except per share data) Revenue. $645 to $680 GAAP Net Loss. (853) to ($39) (1) Stock-Based Compensation Exp. ‘$18 to $20 (2) Intangible
Slide 14: Strategic Overview
STRATEGIC OVERVIEW
Slide 15: Continued Traction in Advanced Manufacturing
CONTINUED TRACTION IN ADVANCED MANUFACTURING Important milestones towards adopting additive manufacturing in complex requirement applications: + Strategic collaboration with SIA Engineering Company (SIAEC), a major provider of aircraft maintenance, repair, and overhaul (MRO) services in Asia- Pacifi
Slide 16: Continuous Build 3D Demonstrator
Continuous Build 3D Demonstrator Smart multi-cell system + New additive manufacturing approach designed for low volume production and mass customization + Enables continuous, automated 3D printing with only minor human intervention + Cloud-based architecture with automatic queue management + Scalabl
Slide 17: Metal Initiatives
Metal Initiatives + Leveraging strong base of knowledge within Stratasys Direct Manufacturing ¥ One of largest 3” party installations of DMLS systems : v Provider of metal parts services to key customers Ss ral asyS + Strategic investment in LPW Technology DIRECT MANUFACTURING v Market leader in met
Slide 18: Ilan Levin - CEO Summary & Outlook
Ilan Levin - CEO Summary & Outlook >» Encouraged by efforts to achieve deeper engagement with customers in targeted industry verticals of aerospace, automotive, and healthcare >» Focused on expanding collaborations with key global manufacturing companies to unlock value and grow adoption of our prod
Slide 19: We Are Stratasys
WE ARE STRATASYS THE 3D PRINTING SOLUTIONS COMP,
Slide 20: Reconciliation of GAAP to Non-GAAP - Results of Operations
Reconciliation of GAAP to Non-GAAP - Results of Operations Stratasys Ltd. Three Months Ended March 31, 2017 [aap | agustments | Non GAAP | SAP. [Gross Profit (1) ‘$76,880, $6,614 $83,494 $81,169 $11,278 $92,447 [Operating income (Loss) (1,2) (12,629) 16,658 4,029 (27,060) 25,013 3,953 Net income (Lo