Slide 1: Q1 2015 Financial Results Conference Call
Q1 2015 Financial Results Conference Call
Slide 2: Q1 2015 Conference and webcast details
Q1 2015 Conference and webcast details Live Dial-in Information Primary Dial-in: 800-299-9630 International Dial-in: 617-786-2904 Participant Passcode: 43637463 Live webcast and replay: http://edge.media-server.com/m/p/crxxdwm3 Speakers David Reis CEO Erez Simha COO & CFO Shane Glenn VP, Investor Re
Slide 3: Forward looking statement
Stratasys Forward looking statement Certain information included or incorporated in this presentation may be deemed to be forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933 and Section 21E of the Securities
Slide 4: Summary & Outlook
Summary & Outlook Long-term opportunity remains unchanged – despite disappointing first quarter results 2015 operating plans revisited, with adjustments to operating expenses and capital expenditures made accordingly New applications developing, including exciting manufacturing solutions within aero
Slide 5: Results: Non-GAAP Summary
Financial Results Stratasys Ltd. Non-GAAP Q1-14 Q1-15 Change YOY Unit Sales 8,802 7,536 -14.4% Total Revenue $151.2 $172.7 +14.3% Revenue/ Employee 0.079 0.056 -28.4% Gross Profit % margin 92.1 60.9% 93.4 54.1% +1.4% Operating Expenses % of sales 69.4 45.9% 94.2 54.5% +35.8% Operating Profit (Loss)
Slide 6: Results: Revenue
Financial Results Revenue Stratasys Ltd. Non-GAAP Total Revenue - Quarter Total Revenue – Quarterly Trend Product Service Product Service System Revenue 12% YOY Consumable Revenue 18% YOY Customer Support Revenue 28% YOY ($ in millions unless noted otherwise) $154.1 $160.2 $168.6 $126.7 $24.4 $43.4
Slide 7: Results: System Unit Sales
Financial Results Decrease in unit sales relative to prior periods driven by lower than expected MakerBot unit volumes Overall system sales negatively impacted by overall market softness in first quarter The Company sold 7,536 3D printing and additive manufacturing systems during the quarter, and on
Slide 8: Results: Gross Profit
Financial Results Sequential gross margin decline driven by: product mix impact of acquisitions decline in capacity utilization at MakerBot Product mix favored lower margin systems, particularly within the Connex line Gross Profit Stratasys Ltd. Non-GAAP Q1-14 Q1-15 % Change YOY Product Revenue % of
Slide 9: Results: Operating Profit
Financial Results R&D expansion primarily driven by increased headcount, and the acceleration of system and material project development SG&A expansion driven primarily by the impact of acquisitions Operating Profit Stratasys Ltd. Non-GAAP Operating Profit Analysis – Quarterly Trend Q1-14 Q1-15 % Ch
Slide 10: Results: Balance Sheet Summary
Financial Results $424.9M in cash and cash equivalents & bank deposits Generated $3.9M in cash from operating activities in Q1 2015 Increased inventory result of lower first quarter sales DSO on 12-month trailing revenue was 67, compared to 73 in the fourth quarter 2014 Balance Sheet Summary Stratas
Slide 11: Projections
Financial Results Results lower than expected across most geographies and industries Revenues for both consumables and customer support grew as expected Taking immediate action to adjust near-term operating and capital expenditure plans Continue to invest aggressively in critically strategic areas M
Slide 12: Guidance: Fiscal 2015 Financial Guidance
Financial Guidance Stratasys Ltd. Revenue & Earnings Guidance Non-GAAP $800-860 $1.20-$1.70 Revenue (M) Non-GAAP Diluted EPS Fiscal 2015 Financial Guidance Reconciliation of GAAP to Non-GAAP Guidance ($ in millions, except per share data) Revenue $800 to $860 Non-GAAP Net Income $63.0 to $90.0 (1) S
Slide 13: Guidance: Long-Term Target Operating Model
Financial Guidance Stratasys Ltd. Long-Term Target Operating Model Non-GAAP +25% Revenue growth 18%–23% Operating margin 10%–15% Effective tax rate 16%–21% Net income margin of sales of sales
Slide 14: Strategic Investment Plan
Strategic Investment Plan Industry Focus 01 Services 02 Product Development 04 Sales and Marketing Infrastructure 03 Support $3 Billion in revenue by 2020
Slide 15: Organizational Update: Enhancing organizational structure
Organizational Update Enhancing organizational structure for long-term success Stratasys Direct Manufacturing (SDM) Stratasys Strategic Consulting Division Completed the organizational integration of Solid Concepts, Harvest Technologies and RedEye Services to form Stratasys Direct Manufacturing (SDM
Slide 16: Organizational Update: Ensuring management depth
Organizational Update Ensuring management depth and organizational focus Key management appointments MakerBot reorganization Strengthened Management Team Newly created Chief Business Officer role with hire of Joshua Claman (formerly of Dell) to drive commercial and go-to-market strategy across Strat
Slide 17: Applications & Verticals: Aerospace Manufacturing
Applications & Verticals: Aerospace Manufacturing Applications Expanding certification of additive manufacturing processes and materials for flight applications Customers spend months or years qualifying a material or process Over 1,000 parts on new A350 XWB aircraft printed using Stratasys FDM tech
Slide 18: Summary & Outlook
Summary & Outlook Fundamental growth drivers of 3D printing and additive manufacturing industry remain unchanged Industry in early phases of adoption , and we remain focused on driving long-term growth as we move through a challenging period Confident in long-term market prospects, but moderating ne
Slide 19: We are Stratasys
We are Stratasys We are innovation We are fearless leaders We are customer driven Our quality matters Our people make the difference
Slide 20: Reconciliation of GAAP to Non-GAAP Results of Operations
Reconciliation of GAAP to Non-GAAP Results of Operations Stratasys Ltd. ($ in thousands except per share data) Q1-14 Q1-15 GAAP Adjustments Non-GAAP GAAP Adjustments Non-GAAP Net sales Products $129,252 $235 $129,487 $126,667 $ - $126,667 Services 21,689 - 21,689 46,064 - 46,064 Cost of sales Produc
Slide 21: Reconciliation of Non-GAAP Adjustments
Reconciliation of Non-GAAP Adjustments Stratasys Ltd. ($ in thousands) Q1-14 Q1-15 Net sales, products Deferred revenue purchase price $235 $- Cost of sales, products Acquired intangible assets amortization (13,225) (14,905) Non-cash stock-based compensation expense (503) (1,225) Intangible assets i