IPG Photonics Corporation · NASDAQ:IPGP
IPG Photonics — Q3 2024 Earnings Presentation
14 slides from IPG Photonics's earnings presentation, Oct 29, 2024
Slide 1: Earnings Call Presentation Third Quarter 2024
Earnings Call Presentation Third Quarter 2024 October 29, 2024 10:00 am ET • By phone: 877-407-6184 in the US or 201-389-0877 internationally • A live webcast of the call will be available and archived on the investor relations section of the Company's website at investor.ipgphotonics.com
Slide 2: Note Regarding Forward Looking Statements and Use of Non-GAAP Financials
Note Regarding Forward Looking Statements and Use of Non-GAAP Financials Information and statements provided by IPG and its employees, including statements in this presentation, that relate to future plans, events or performance are forward-looking statements. These statements involve risks and unce
Slide 3: Q3 '24 Summary
Q3 '24 Summary • Revenue declined year over year due to lower demand in general industrial and in e-mobility markets, but sequential performance was more stable ◦ Total revenue decreased 23% YoY mostly due to lower sales in cutting applications in North America and Europe and lower welding sales in
Slide 4: Summary by Application
Summary by Application • Welding – was more stable sequentially, but YoY performance was still negatively impacted by lower sales to general industrial and e-mobility applications • Cutting – continued to decline due to softer Cutting industrial demand and OEM customers managing Welding and brazing
Slide 5: Financial Review
Financial Review In millions except per share Q3 '24 Q3 '23 Y/Y Q2 '24 Q/Q • Lower sales, lower gross margin, inventory provision of Revenue $233.1 $301.4 (23)% $257.6 (10)% $30 million, loss on divestitures of $198 million and asset impairment charges of $27 Gross Margin 23.2% 44.1% 37.3% million r
Slide 6: Revenue by Geography
Revenue by Geography 120 250 100 200 80 In millions 150 In millions 60 100 40 50 20 0 0 North America Europe China Other Asia China RoW Q3 '23 Q2 '24 Q3 '24 Q3 '23 Q2'24 Q3 '24 • Sales declined in North America due to lower revenue in cutting and medical applications, partially offset by growth in w
Slide 7: Balance Sheet and Cash Flow Summary
Balance Sheet and Cash Flow Summary In millions Q3 '24 Cash and Short-term Investments $1,019 • Strong balance sheet with over $1 billion in cash and short-term investments Inventories $321 • Continued to focus on inventory control Total Debt $— • Capital Allocation ◦ Investing in business to drive
Slide 8: Balance Sheet and Cash Flow Generation
Balance Sheet and Cash Flow Generation 250 250 1,500 200 200 150 150 1,000 In millions In millions In millions 100 100 50 50 500 0 0 -50 -50 -100 -100 0 YTD 2023 YTD 2024 Dec 2023 Sep 2024 Cash and cash equivalents Cash from operations CapEx Free cash flow Short-term investments • Continued to gener
Slide 9: Financial Guidance
Financial Guidance Q4 '24 Outlook Revenue $210M - $240M Gross Margin 35% - 38% Operating Expenses $78M - $80M EPS $0.05 - $0.35 Tax Rate ~25% Diluted common shares ~44M • Q3 book-to-bill was 1 • This guidance excludes Russian operations which were sold in Q3 9 © 2024 IPG PHOTONICS 9
Slide 10: The World Leader in Fiber Lasers
VERTICAL THE WORLD INTEGRATION LEADER IN PROVIDES FIBER COMPETITIVE LASERS EDGE EXPANDING LASER & ENABLING DISPLACING GREATER NON-LASER AUTOMATION APPLICATIONS STRONG HIGH ELECTRICAL MARGINS, EFFICIENCY ENABLES BALANCE SHEET LOWER CUSTOMER & CASH FLOW ENERGY USE 10 © 2024 IPG PHOTONICS
Slide 11: Appendix: Reconciliation of Non-GAAP Financial Measures
Appendix: Reconciliation of Non-GAAP Financial Measures Use of Non-GAAP Adjusted Financial Information The following information provides the definition of adjusted gross profit, adjusted gross margin, adjusted net income and adjusted earnings per share (EPS) as presented by the Company, which are f
Slide 12: Appendix: Reconciliation of Non-GAAP Financial Measures
Appendix: Reconciliation of Non-GAAP Financial Measures (In thousands, except percentages) Q3 2024 Gross profit $54,089 23.2% Add: Inventory provision 29,884 Adjusted gross profit $83,973 36.0% We define adjusted gross profit as gross profit as reported, adjusted for non-recurring, infrequent, or un
Slide 13: Appendix: Reconciliation of Non-GAAP Financial Measures
Appendix: Reconciliation of Non-GAAP Financial Measures Q3 2024 (In thousands, except per share data) Before Tax Tax Impact After Tax Per Diluted Share Net (loss) income attributable to IPG Photonics $(233,594) $(5.33) Corporation and diluted EPS Adjustments to reconcile to adjusted net income: Inve
Slide 14: Thank you
Thank you