Slide 1: Q3 2015 Conference and webcast details
Q3 2015 Conference and webcast details Live Dial-in Information Primary Dial-in: 866-270-6057 International Dial-in: 617-213-8891 Participant Passcode: 66906702 Live webcast and replay: http://edge.media-server.com/m/p/svoedx39 Speakers David Reis CEO Erez Simha COO & CFO Shane Glenn VP, Investor Re
Slide 2: Certain statements in this press release are “forward-looking statements” within the meaning of the
Certain statements in this press release are “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 Exchange Act of 1934. Forward-looking statements are characterized by the
Slide 3: Financial Update and Guidance
Financial Update and Guidance Erez Simha – CFO and COO Shane Glenn – VP of Investor Relations
Slide 4: Financial Results - Non-GAAP
Financial Results - Non-GAAP Stratasys, Ltd. ($ in millions unless noted otherwise) Revenue Growth 18% YOY Organic Revenue Growth 20% YOY Non-GAAP Gross Profit Growth 28% YOY Non-GAAP Net Income 98% YOY Core Revenue Growth 14% YOY Q3-14 Q3-15 Change YOY Unit Sales 10,965 5,467 -50.1% Total Revenue $
Slide 5: Financial Results – Non-GAAP: Total Revenue
Financial Results – Non-GAAP Stratasys, Ltd. ($ in millions unless noted otherwise) Total Revenue - Quarter Total Revenue – Quarterly Trend Product Service System Revenue 37% YOY Consumable Revenue 0% YOY Customer Support Revenue 16% YOY Product Service $168.6 $126.7 $134.5 $118.5 $48.5 $46.1 $47.8
Slide 6: Financial Results – System Unit Sales
Decrease in unit sales relative to prior periods driven by lower than expected MakerBot unit volumes The Company sold 5,467 3D printing and additive manufacturing systems during the second quarter; and on a pro-forma combined basis, has sold 141,395 systems worldwide as of September 30, 2015 Total U
Slide 7: Financial Results – Non-GAAP: Product and Service Gross Profit
Financial Results – Non-GAAP Stratasys, Ltd. ($ in millions unless noted otherwise) Q3-14 Q3-15 % Change YOY Product Revenue % of sales $160.2 78.7% $118.5 70.7% -26.0% Service Revenue % of sales 43.4 21.3% 49.1 29.3% +13.1% Product Gross Profit % margin 101.5 63.4% 69.6 58.7% -31.5% Service Gross P
Slide 8: Financial Results – Operating Profit Non-GAAP
Financial Results – Operating Profit Non-GAAP Stratasys, LTD. ($ in millions unless noted otherwise) Operating Profit Analysis – Quarterly Trend Q3-14 Q3-15 % Change YOY R&D Expense % of sales 19.2 9.4% 25.1 15.0% +30.8% SG&A Expense % of sales 67.9 33.3% 70.1 41.8% +3.3% Total Operating Exp. % of s
Slide 9: Financial Results – Revenue Geographic Mix
Geographic Sales Q3-2014 North America EMEA APAC Other Geographic Sales Q3-2015 North America EMEA APAC Other Results reflect broad-based weakness Expect challenging market condition to persist for the remainder of 2015 Financial Results – Revenue Geographic Mix Non-GAAP Stratasys, Ltd.
Slide 10: Financial Results – Balance Sheet Summary
($ in millions unless noted otherwise) Q2-15 Q3-15 Cash, Cash Equivalents & Bank Deposits $502.6 $262.4 Accounts Receivable 137.0 130.7 Inventories 137.4 140.8 Net Working Capital 486.2 428.9 $262.4 million in cash and cash equivalents & bank deposits Sequential decrease in cash, cash equivalents, &
Slide 11: Financial Summary
Financial Summary Third quarter results did not meet expectations Performance impacted by slowdown in capital equipment investments in key markets Near-term visibility is low – sales cycles have lengthened Implementing adjustments to better align with current market environment and emphasize operati
Slide 12: Revenue & Earnings Guidance
Revenue & Earnings Guidance Non-GAAP $160-$175M ($0.17-$0.06) Revenue (M) Non-GAAP Diluted EPS Reconciliation of GAAP to Non-GAAP Guidance ($ in millions, except per share data) Revenue $160 to $175 Non-GAAP Net Income ($9) to ($3) (1) Stock-Based Compensation Exp. $7 to $7.5 (2) Intangible Assets A
Slide 13: Strategic Overview
STRATEGIC OVERVIEW David Reis – CEO
Slide 14: New Branding Initiative – Claiming Leadership Position
STRATASYS IS THE TRUSTED LEADER IN INNOVATIVE 3D PRINTING AND MANUFACTURING SOLUTIONS THAT EMPOWER INDIVIDUALS AND ORGANIZATIONS TO TRANSFORM THE WAY THEY IMAGINE, DESIGN AND MAKE THINGS. WE SHAPE LIVES BY REVOLUTIONIZING THE WAY THINGS ARE MADE New Branding Initiative – Claiming Leadership Position
Slide 15: Future Growth Potential - Rapid Prototyping & Advanced Manufacturing
Future Growth Potential - Rapid Prototyping & Advanced Manufacturing Long-term growth opportunities in key applications Global Prototyping market is ~$10-$15B* Additive Manufacturing technology only has ~23% penetration Advanced applications seen as having highest levels of growth include**: Tooling
Slide 16: Stratasys Ecosystem
Stratasys Ecosystem Product and service offerings evolving rapidly Company positioned to provide a complete portfolio of solutions within design and manufacturing value chain Ecosystem on display at Formnext 2015 in November 3D printers and production 3D printers Stratasys Direct Manufacturing Indus
Slide 17: Go-to-Market Transformation
Key executives in place New Chief Business Officer New North American President Initiatives Underway – More to come Development of inside sales team to support channel partners Improved training, support, and sales enablement of existing channel Continue to pursue our Strategic Accounts Management a
Slide 18: Making Progress in MakerBot Reorganization
Making Progress in MakerBot Reorganization Operational improvements to improve efficiency Enhancement to leadership team Consolidated facilities Shifting legacy 4TH generation product production to contract manufacturer On track for improved performance in 2016 Evaluating Adjustments to Overall Cost
Slide 19: Summary & Outlook
Summary & Outlook Continue to observe significant market potential and confident in long-term growth prospects Re-launched brand and developing comprehensive ecosystem Strengthening go-to-market with key hires and ongoing development of vertical-market-focused strategy Adjusting costs and operating
Slide 20: Reconciliation of GAAP to Non-GAAP - Results of Operations
Reconciliation of GAAP to Non-GAAP - Results of Operations Stratasys Ltd. Q3-14 Q3-15 GAAP Adjustments Non-GAAP GAAP Adjustments Non-GAAP Net sales Products $160,200 $ - $160,200 $118,473 $ - $118,473 Services 43,410 - 43,410 49,107 - 49,107 Cost of sales Products 85,437 (26,760) 58,677 80,796 (31,8
Slide 21: Reconciliation of Non-GAAP Adjustments
Reconciliation of Non-GAAP Adjustments Stratasys Ltd. Q3-14 Q3-15 Net sales, products Deferred revenue step-up $- $- Cost of sales, products Acquired intangible assets amortization (14,328) (12,317) Impairment charges (11,635) (18,338) Non-cash stock-based compensation expense (797) (372) Reorganiza
Slide 22: Reconciliation of Non-GAAP Adjustments
Recon Stratasys Ltd. iation of Non-GAAP Adjustments Net sales. products ured nlangble assets anarah CONN FETT Jirsament cranes TRS VEE oncsh sock based conponnaton eponse van) ra) aon salad cone co yd ange assets aTaizaton oncash stoo bases consensaton eoonee ro i) Becranzaton and oer related costs