Slide 1: Q1-2013 Financial Results Conference Call
Q1-2013 Financial Results Conference Call May 13th 2013
Slide 2: Q1-2013 Conference and webcast details
Q1-2013 Conference and webcast details 2 CEO CFO & COO (IL) Chairman & Chief Innovation Officer Director, Investor Relations David Reis Erez Simha Scott Crump Shane Glenn Speakers Live Dial-in Information PRIMARY DIAL-IN: (877) 415-3182 INTERNATIONAL DIAL-IN: (857) 244-7325 PARTICIPANT PASSCODE: 292
Slide 3: Forward looking statement
Stratasys Forward looking statement 3 Statements in this presentation about Stratasys’ beliefs, intentions and expectations, including statements regarding the management of Stratasys, Inc. and Objet Ltd. as a combined company, the benefits of the proposed combination of the companies, and the futur
Slide 4: Opening Remarks – Scott Crump
Opening Remarks Scott Crump, Chairman & Chief Innovation Officer 4 May 13th 2013
Slide 5: Opening Remarks – David Reis, CEO
Opening Remarks David Reis, CEO 5 May 13th 2013
Slide 6: Q1-2013 Conference Call Highlights
Released record financial results in Q1. Advanced our sales and marketing integration plan. Initiated a comprehensive marketing campaing to broaden brand awareness. Maintain positive outlook and strong growth expectations. 6 Q1-2013 Conference Call Highlights Introduced an exciting new product targe
Slide 7: Discussion of First Quarter Financials
Discussion of First Quarter Financials Erez Simha, CFO & COO (IL) 7 May 13th 2013
Slide 8: Financial Results Non-GAAP
Financial Results Stratasys Ltd. Non-GAAP ($ in millions unless noted otherwise) Q1-12 Pro forma Q1-13 Change YOY Unit Sales 1,115 1,168 +5% Total Revenue $83.0 $98.2 +18% Revenue/ Employee 0.086 0.084 -2% Gross Profit % margin 47.1 56.7% 57.9 59.0% +23% Operating Expenses % of sales 30.6 36.9% 37.6
Slide 9: Financial Results: Revenue
Financial Results Revenue Stratasys Ltd. Non-GAAP ($ in millions) 9 Total Revenue - Quarter Total Revenue – Quarterly Trend +16% +31% Quarter Highlights: Hardware revenue +15% YOY Consumable revenue +18% YOY Customer Service revenue +25% YOY RedEye revenue +42% YOY Drivers: Fortus and Polyjet system
Slide 10: Financial Results: System Unit Sales
Financial Results System Unit Sales1 Stratasys Ltd. 10 Total Units – Quarter Total Units – Quarterly Trend Includes all systems sold by Stratasys, Inc., Objet Ltd., and Solidscape Inc.; periods prior to 2013 are pro forma +5% Quarter Highlights: Fortus Polyjet Idea Series
Slide 11: Financial Results: Gross Profit
Gross Margin – Quarterly Trend ($ in millions unless noted otherwise) Q1-12 Q1-13 % Change YOY Product Revenue % of sales $71.2 85.8% $82.8 84.3% +16.3% Service Revenue % of sales 11.8 14.2% 15.4 15.7% +30.5% Product Gross Profit % margin 43.3 60.8% 53.0 63.9% +22.2% Service Gross Profit % margin 3.
Slide 12: Financial Results: Operating Profit
Operating Profit Analysis – Quarterly Trend ($ in millions unless noted otherwise) Q1-12 Q1-13 % Change YOY R&D Expense % of sales 8.2 9.9% 9.9 10.1% +20.6% SG&A Expense % of sales 22.4 27.0% 27.7 28.2% +23.5% Total Operating Exp. % of sales 30.6 36.9% 37.6 38.3% +22.7% Total Operating Profit % marg
Slide 13: Financial Results: Growth Drivers
Q1-2013 (YOY) Units Dollars Systems +5% +15% Consumable Revenue -- +18% Customer Service Revenue -- +25% RedEye Parts Services -- +42% Financial Results Growth Drivers Stratasys Ltd. Non-GAAP 13
Slide 14: Financial Results: Revenue Geographic Mix
Financial Results Revenue Geographic Mix Stratasys Ltd. Non-GAAP 14 * Periods prior to 2013 are pro forma
Slide 15: Financial Results: Balance Sheet Summary
Financial Results Balance Sheet Summary Stratasys Ltd. ($ in millions unless noted otherwise) 15 Selected balance sheet items ($mm) FY-12 Q1-13 Cash , Cash Equivalents & Inv. $155.5 $142.5 LT Debt 2.9 3.2 Accounts Receivable 64.7 72.4 Inventories 68.0 66.4 Net Working Capital 228.9 233.5 Highlights
Slide 16: Financial Results & Projections
16 Financial Results & Projections Stratasys Ltd. Non-GAAP ($ in millions unless noted otherwise) * Periods prior to 2013 are pro forma
Slide 17: Guidance Overview
Guidance Overview Shane Glenn VP Investor Relations 17 May 13th 2013
Slide 18: Financial Guidance: Revenue and Earnings Guidance
Reconciliation of GAAP to Non-GAAP Guidance ($ in millions unless noted otherwise) Revenue $430 to $445 Non-GAAP Net Income $74.5 to $81.0 (1) Stock-Based Compensation Exp. $20.5 - $23.0 (2) Amortization of Intangibles $60.5 (3) Merger-Related Expenses $7.2 - $8.8 GAAP Net Income ($16.0) – ($6.3) GA
Slide 19: Financial Guidance: Long-Term Target Operating Model
Revenue growth Operating margin1 Net income margin1 Effective tax rate1 +20% 20% – 25% of sales 15% – 20% 16% - 21% of sales Financial Guidance Long-Term Target Operating Model Stratasys Ltd. Non-GAAP 19 1 Non-GAAP.
Slide 20: Strategic Overview
Strategic Overview David Reis, CEO 20 May 13th 2013
Slide 21: Stratasys Merger Update
Stratasys Merger Update 21 Sales and marketing team integration is complete. Cross-trained 112 resellers, representing 54% of dealers and 80% of revenue. Exciting growth opportunities Premier portfolio of 3D printing solutions and technology Powerful strategic position Financially compelling combina
Slide 22: 3D Printing Goes Mainstream
22 3D Printing Goes Mainstream Financial media: Wall Street Journal Financial Times The Economist (Worldwide) Fortune Forbes
Slide 23: Ortho30
23 Ortho30 The First Professional Desktop 3D Printer Exclusively Designed for Smaller Orthodontic Labs and Clinics Professional – High Quality Models, Cutting Edge Technology Desktop – Accessible and Affordable Specially Designed for Orthodontics Unique Materials Highest Versatility
Slide 24: Summary
Strong record first quarter results. Continued sales, marketing and service team integration, and are ahead of schedule in cross-training channel partners. Continuing to invest for the future through new product and channel develop programs. Maintaining and extending our technology lead and growing
Slide 25: Q&A
Stratasys Q&A 25 We are passionate believers in the value and power of 3D printing, and in the change it can bring to the world. And we’re here to lead it.
Slide 26: Reconciliation of Pro Forma GAAP to Pro Forma Non-GAAP Results
26 Reconciliation of Pro Forma GAAP to Pro Forma Non-GAAP Results of Operations Stratasys Ltd. Combined ($ in thousands except per share data)
Slide 27: Reconciliation of Non-GAAP Adjustments
27 Reconciliation of Non-GAAP Adjustments Stratasys Ltd. Combined Q1-12 Q1-13 Net sales, products Deferred revenue step-up - $ 1,015 $ Cost of sales, products Objet intangible assets amortization expense (9,824) (18,295) Solidscape intangible assets amortization expense (436) (436) Non-cash stock-ba