Slide 1: Earnings Presentation Q2 2021
This presentation contains nLIGHT, Inc. proprietary information. No part of it may be circulated, quoted, or reproduced for distribution without prior written approval from nLIGHT, Inc. Earnings Presentation Q2 2021 August 5, 2021
Slide 2: Forward-looking statements
2 Certain statements in this presentation are “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995. Words such as “outlook
Slide 3: Q2 21 Business Highlights
3 • Record quarterly revenues with 33% growth (year-over-year) – Growth (y-o-y) in all market segments (Microfabrication, Industrial, Aerospace and Defense) – $69 million of revenue and 36% Products Gross Margin • Healthy demand across all markets • Record revenue in ROW Industrial and Microfabricat
Slide 4: Quarterly Revenue – Market
4 Quarterly Revenue – Market $ Millions 19% 19% 17% 20% 18% 14% 14% 16% 18% 13% 20% 21% 22% 19% 26% 30% 39% 29% 42% 44% 40% 35% 28% 35% 33% 38% 38% 40% 42% 44% 45% 49% 41% 38% 43% 44% 43% 43% 37% 43% 35% 36% 35% 36% 51% 46% 50% 42% 44% 46% 45% 40% 37% 38% 39% 41% 35% 38% 30% 26% 24% 27% 23% 20% 25%
Slide 5: Quarterly Revenue – Geography
5 71% 59% 60% 60% 60% 57% 60% 62% 64% 54% 67% 68% 67% 62% 60% 65% 72% 59% 69% 72% 75% 73% 29% 41% 40% 40% 40% 43% 40% 38% 36% 46% 33% 32% 33% 38% 40% 35% 28% 41% 31% 28% 25% 27% $22 $25 $26 $29 $30 $35 $37 $37 $42 $52 $51 $46 $42 $48 $44 $43 $43 $52 $62 $66 $61 $69 $0 $10 $20 $30 $40 $50 $60 $70 Q11
Slide 6: Financial Update
Financial Update
Slide 7: Summary Financial Results | Revenue and Gross Margin
7 Summary Financial Results | Revenue and Gross Margin Quarterly $ Millions; % of Revenue Q2 2020 Q2 2021 Total Revenue $52.1 $69.1 Products Revenue 45.1 53.6 Development Revenue 7.0 15.6 Gross Margin 25.0% 29.4% Products Margin 27.7% 36.1% Development Margin 7.8% 6.5%
Slide 8: Gross Margin | Product and Development Revenue and Gross Margin
8 Gross Margin | Product and Development Revenue and Gross Margin – Quarterly $ Millions; % of Revenue 15% 24% 22% 29% 30% 31% 34% 33% 35% 34% 35% 36% 32% 33% 30% 23% 22% 25% 28% 30% 29% 29% 24% 24% 28% 32% 36% 36% 36% 0% 5% 10% 15% 20% 25% 30% 35% 40% $0 $10 $20 $30 $40 $50 $60 $70 Q116 Q216 Q316 Q
Slide 9: Operating Expenses (Non-GAAP)
9 Operating Expenses (Non-GAAP) $ Millions; % of Revenue Note: Excluding stock-based compensation expense, amortization of purchased intangibles and acquisition and integration-related costs. See Appendix for a reconciliation to GAAP operating expenses. Operating Expenses | R&D and SG&A 4.3 4.7 5.0
Slide 10: Summary Financial Results | Profitability and Cash Flow
10 * See Appendix for reconciliation to most directly comparable GAAP measure Q2 2020 Q2 2021 Net Income (Loss) ($6.8) ($7.9) Non-GAAP Net Income* (0.1) 4.4 EPS (diluted) (0.18) (0.19) Non-GAAP EPS (diluted)* 0.00 0.09 Adjusted EBITDA (non-GAAP)* 3.3 6.3 Cash Flow from (used in) Operations 8.1 (1.0)
Slide 11: Strong Balance Sheet and Working Capital Management
11 Strong Balance Sheet and Working Capital Management $42 $46 $46 $49 $51 $53 $55 $59 $63 116 128 126 128 115 105 106 117 113 0 15 30 45 60 75 90 105 120 135 $0 $10 $20 $30 $40 $50 $60 $70 $80 Q219 Q419 Q220 Q420 Q221 Inventory ($M) and Days of Inventory (DOI) Inventory DOI $31 $29 $27 $27 $24 $23
Slide 12: Outlook | Q3 2021
12 • Q3 2021 Revenues of $68 million to $74 million; midpoint of $71 million – Laser Products: approximately $52 million at midpoint – Advanced Development: approximately $19 million at midpoint • Q3 2021 Gross Margin of 26% to 30% – Laser Products: 34% to 38% – Advanced Development: approximately 6
Slide 13: Simply brilliant
eC Simply brilliant
Slide 14: Appendix
Appendix
Slide 15: Supplemental Information | Revenue and Gross Margin
15 Supplemental Information | Revenue and Gross Margin nLight, Inc. (in thousands, except per share data) Q1 Q2 Q3 Q4 Total Q1 Q2 Q3 Q4 Total Q1 Q2 Q3 Q4 Total Q1 Q2 Total Revenue: Products $ 42,467 $ 51,705 $ 51,025 $ 46,162 $ 191,359 $ 41,861 $ 48,048 $ 43,814 $ 40,336 $ 174,059 $ 36,930 $ 45,104
Slide 16: GAAP to Non-GAAP Reconciliation | Operating Expenses
16 GAAP to Non-GAAP Reconciliation | Operating Expenses nLight, Inc. (in thousands, except per share data) Q1 Q2 Q3 Q4 Total Q1 Q2 Q3 Q4 Total Q1 Q2 Q3 Q4 Total Q1 Q2 Total GAAP research and development ("R&D") expense $ 4,283 $ 4,898 $ 5,475 $ 6,398 $ 21,054 $ 6,422 $ 6,494 $ 6,402 $ 8,819 $ 28,137
Slide 17: GAAP to Non-GAAP Reconciliation | Adjusted EBITDA, Net Income and EPS
17 (1) There is no income tax effect related to the stock-based compensation, acquisition and integration-related costs, and amortization of purchased intangibles adjustments due to the full valuation allowance in the U.S. GAAP to Non-GAAP Reconciliation | Adjusted EBITDA, Net Income and EPS nLight,
Slide 18: Supplemental Information | Key Revenue Metrics
18 Supplemental Information | Key Revenue Metrics Note: Percentages may not total to 100 due to rounding. nLight, Inc. (in thousands, except per share data) Q1 Q2 Q3 Q4 Total Q1 Q2 Q3 Q4 Total Q1 Q2 Q3 Q4 Total Q1 Q2 Total Revenues by end market Industrial $ 19,146 $ 25,251 $ 20,890 $ 17,476 $ 82,76
Slide 19: Supplemental Information | Revenue by power level
19 Supplemental Information | Revenue by power level 2% 4% 13% 14% 17% 24% 30% 27% 24% 35% 40% 47% 49% 54% 58% 47% 54% 51% 40% 41% 36% 39% 40% 45% 39% 43% 49% 44% 43% 51% 57% 48% 39% 39% 39% 35% 34% 39% 29% 32% 60% 59% 64% 61% 58% 51% 49% 43% 34% 32% 27% 22% 19% 17% 20% 14% 12% 11% 9% 14% 17% 17% 0%