Stratasys, Ltd. · NASDAQ:SSYS
Stratasys — Q4 and FY2018 Earnings Presentation
20 slides from Stratasys's earnings presentation, Mar 7, 2019
Slide 1: Q4 and Full Year 2018 Financial Results Conference Call
im STRATASYS f= 4 and Full mm Year 2018 Financial Results Conference Call March 7, 2019 = Stratasys
Slide 2: Q4 and FY 2018 Conference Call and Webcast Details
Q4 and. FY 2018 Conference Call and Webcast Details Speakers « Elan Jaglom — Interim CEO + David Reis — Vice-Chairman « _Lilach Payorski - CFO * Yonah Lloyd — VP, Investor Relations Live Dial-in Information Primary Dial-in +1-866-394-5776 International Dial-in: +1-409-350-3596 Participant Passcode:
Slide 3: Forward Looking Statement
Stratasys Forward Looking Statement ‘The statements in this presentation regarding Stratasys’ strategy, and the statements regarding its projected future financial performance, including the financial guidance conceming its expected results for 2019, are forward-looking statements reflecting managem
Slide 4: Use of Non-GAAP Financial Information
Stratasys Use of Non-GAAP Financial Information ‘The non-GAAP data that appears below, 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
Slide 5: Elan Jaglom, Interim CEO: Opening Remarks
Elan Jaglom Interim CEO Opening Remarks +* Fourth quarter results show positive traction in high-end FDM and_PolyJet systems, primarily in North America, improved results at Stratasys Direct Manufacturing, and steady growth in customer support revenues + Revenue was impacted by government shutdown i
Slide 6: Financial Update
Slide 7: Financial Results
8 Financial Results GAAP Non-GAAP Gross Profit % Margin Operating Income (Loss) % Margin Pre-Tax Income (Loss) % Margin Tax Rate EBITDA Net Income (Loss) attributed to SSYS Ltd. % Margin Diluted EPS Diluted Shares $ in millions, except shares data All numbers and percentages rounded Q417 Q48 Change
Slide 8: Financial Results — Revenue
Stratasys Financial Results — Revenue Total Revenue - Quarterly Trend 179.3 177.1 51.8 49.9 52.4 118.4 103.9 109.6 49.6 129.8 L417 Mf a2 ‘17 9 a218 Basis Mf a4 ‘13 | $ in millions unless noted otherwise Y/Y Change § Product Revenue -4% § System Revenue -7% > Consumable Revenue Flat f Service Revenue
Slide 9: Financial Results — Gross Margin Trends
Financial Results — Gross Margin Trends GAAP Non-GAAP Pre 49.2% 49.1% 48.7% 49.1% 52.5% Lam tad 52.5% 52.1% 52.2% ar ee sas om say gs a a pa 35.7% 36.1% 35.9% 96.2% 36.3% @ 34.0% 2% 344% 5% Q417 Qi Q2 18 Q3 18 a4 Q447 Q118 Q218 Q3 18 418 Hi Total Gross Margin [J Product Gross Margin [J Service Gross
Slide 10: Financial Results — Operating Expense and Margin
10 Stratasys Financial Results — Operating Expense and Margin Operating Margin 7.6% 7.2% a q 5.0% <q o 3.2% 2.1% Q4 17 Q4 ‘18 mepereenss 14.8% MRcieens 13.8% 337.2% cen 37.5% YIY Change § GAAP Operating Expense -3% § Non-GAAP Operating Expense -1% Alll percentages rounded
Slide 11: Financial Results — Balance Sheet Summary & Cash Flow From Operations
" Stratasys Financial Results — Balance Sheet Summary & Cash Flow From Operations Q417 = Q3-18 Q4-18 Cash and Cash Equivalents 3288 348.9 393.2 Accounts Receivable, net 1327 1295 138.1 Inventories 115.7 181 123.5 Net Working Capital 451.6 483.9 508.4 $ in milions.untess noted otherwise ‘All numbers'
Slide 12: Financial Summary
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Slide 13: Update on CEO Search
UPDATE ON SEO SEARCH n Jaglom — Interim CEO Candidate Criteria: ven ¥ Strong leader Y Global operational experience _ ¥ Proven growth history ' v/ Délivers:shareholder value
Slide 14: FY 2018 Update
Ss 5 48 FY 2018 gc: Seq UPDATE a avid-Reis — Vice Chairman = as s : “¢. . - )
Slide 15: 2018 High End Systems and Materials Strength
15 Stratasys 2018 High End Systems and Materials Strength Strong growth for F900 addressing manufacturing ‘ focused applications = ¢ Utilization rates exceed prototyping units such y as F123 by 3X J750 and J735 increasingly adopted for applications requiring high-realism and multi-color and multi-ma
Slide 16: Recent New Product Introductions
16 Recent New Product Introductions F380 Carbon Fiber Edition + Pleased with early demand Antero PEKK + Advanced FDM thermoplastic that meets strict aerospace requirements FDM TPU Flexible Elastomer material for F123 Platform + Strong early interest from Automotive manufacturers MakerBot Method Perf
Slide 17: Growth Strategy and Outlook
Growth Strategy and. Outlook Expected Accelerated Revenue Growth Beginning in 2020 Driven By: v Focuse@)R&D product roadmap \ UG y aay v New prodiictin ‘oductions in 2019 and 2020 s: FL EN v FDM and Palys platforms
Slide 18: Revenue & Earnings Guidance
18 Revenue & Earnings Guidance Revenue (M) $670 - $700 GAAP Diluted EPS $(0.40) - $(0.22) Non-GAAP Diluted EPS $0.55 - $0.70 : $ in milions.untess noted otherwise ‘Alnumbers ‘and percentages rounded Recon of GAAP to ‘GAAP Guidance ($ in millions, except per share data) Revenue $670 to $700 GAAP Net
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Slide 20: Reconciliation of GAAP to Non-GAAP - Results of Operations
Reconciliation of GAAP to Non-GAAP - Results of Operations Stratasys Ltd. 5705s Prof 1) $86,999 | $5,499 $92,498 ‘$87,266, $6,864 $94,130 [Operating income (Loss) (12) “3,803 16,574 42771 “5576 19518 13,542 income (Loss) attributable to Stratasys Ltd. (12.3) 6,07 4,993 11,300 “9,980 19,429 8,449 NNe