Stratasys, Ltd. · NASDAQ:SSYS
Stratasys — Q4 2020 Earnings Presentation
24 slides from Stratasys's earnings presentation, Mar 1, 2021
Slide 1: Q4 and FY 2020 Conference call & webcast details
Q4 and FY 2020 | Conference call & webcast details February 2021 Speakers Yoav Zeif – CEO Lilach Payorski – CFO Yonah Lloyd – VP Investor Relations Live dial - in information US Toll - Free dial - in: 1 - 877 - 407 - 0619 International dial - in: +1 - 412 - 902 - 1012 Live webcast and replay: [https
Slide 2: Forward-looking statements
Forward - looking statements 2 Cautionary Statement Regarding Forward - Looking Statements The statements in this press release regarding Stratasys' strategy, and the statements regarding its projected future financial performance, including the financial guidance concerning its expected results for
Slide 3: Use of non-GAAP financial information
Use of non - GAAP financial information 3 Use of non - GAAP financial measures The non - GAAP data included herein, 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 investor
Slide 4: Agenda
Agenda 1 | Annual review 2 | Financial highlights
Slide 5: CEO Opening Remarks
CEO Opening Remarks 5 Unprecedented industry growth trajectory – driven by secular change Strong sequential improvement in revenue and cash flow Early phases of recovery from COVID - 19 Foundation for growth established Yoav Zeif CEO
Slide 6: Focused Strategy to Lead the Polymer 3D Printing Market
Focused Strategy to Lead the Polymer 3D Printing Market 6 Broadest technology offering in sector Deep application engineering expertise Unmatched go - to - market infrastructure Resilient business model designed to scale Growing software partner ecosystem Five best - in - class technologies for ever
Slide 7: Broadest advanced technology offering in the industry
Broadest advanced technology offering in the industry 7 Engineering / Manufacturing Design / Engineering / Medical Modeling / Dental Tooling / Manufacturing / Dental Manufacturing Engineering / Tooling / Dental Proven reproducibility and dependability Powerful industrial - grade materials Detailed,
Slide 8: 2020 Highlights: Strong execution
2020 Highlights: Strong execution 8 Strategic focus Acquisition of Origin Operational improvement Financial performance Implementation of new strategy around polymers Business aligned to deliver comprehensive solutions for manufacturing applications Reconstitution of the executive team and Board Bes
Slide 9: Increasing our presence in manufacturing – a multi trillion dollar addressable market
Increasing our presence in manufacturing – a multi trillion dollar addressable market 9 Over 25% of 2020 revenue related directly to manufacturing applications Launch of P3, PBF planned this year / future updated FDM systems and Healthcare and Dental applications Manufacturing revenue to grow low do
Slide 10: Technology and innovation support growth
Technology and innovation support growth 10 Programmable PhotoPolymerization technology + 3 bn TAM across Dental, Medical, Tooling and Auto/Aero Expands manufacturing TAM across Commercial and Consumer Goods, Auto and Service Bureaus nTopology KeyShot GrabCAD Origin acquisition Xaar Joint Venture So
Slide 11: Customers continue to express confidence in Stratasys
Customers continue to express confidence in Stratasys 11 Technology leverages advanced materials for prototyping auto interiors and exteriors Antero 800NA J850 printers Jaquard Wearable Platform Delivering results to Google ATAP‘s Jacquard Wearable Platform High - temperature FDM material to be used
Slide 12: Financial highlights
Financial highlights Lilach Payorski CFO Solid H 2 sequential recovery Improved revenue, gross margins and cash generation Good signs of economic recovery
Slide 13: Financial results Q4 2020 and FY 2020
Financial results Q4 2020 13 GAAP Non - GAAP Q4 - 19 Q4 - 20 Change Y/Y Q4 - 19 Q4 - 20 Change Y/Y Total Revenue 160.2 142.4 - 11.1% 160.2 142.4 - 11.1% Gross Profit 78.7 66.0 - 12.7 84.0 70.5 - 13.5 % Margin 49.1% 46.4% - 2.7% 52.4% 49.5% - 2.9% Operating Income (Loss) - 3.3 - 2.5 0.8 10.2 8.3 - 1.
Slide 14: Revenue grew 11.3% sequentially
Revenue grew 11.3% sequentially 14 Note: $ in millions unless noted otherwise. All numbers and percentages rounded. Quarterly trend 109 83.2 73.9 83.6 99.2 51.2 49.7 43.7 44.3 43.2 160.2 132.9 117.6 127.9 142.4 Q4'19 Q1'20 Q2'20 Q3'20 Q4'20 Product Service Revenue Growth – Q4’20 Revenue Y/Y Y/Y (exc
Slide 15: Gross margin improvement trend
Gross margin improvement trend 15 All percentages rounded. GAAP Non - GAAP 49.1% 45.0% 37.2% 38.9% 46.4% 57.0% 52.8% 45.9% 43.3% 55.0% 32.3% 32.1% 22.5% 30.6% 26.6% Q4 '19 Q1 '20 Q2 '20 Q3 '20 Q4' 20 52.4% 48.4% 45.4% 46.8% 49.5% 61.6% 57.9% 52.9% 54.9% 58.7% 32.9% 32.4% 32.7% 31.3% 28.5% Q4 '19 Q1
Slide 16: Operating expenses improvement trend
Operating expenses improvement trend 16 81.9 68.5 Q4'19 Q4'20 - 16.3% 73.8 62.2 Q4'19 Q4'20 Non - GAAP Operating expenses - 15.7% GAAP Operating expenses
Slide 17: Operating income and net earnings
Operating income and net earnings 17 $ in millions unless noted otherwise. All percentages rounded. GAAP Operating income / (loss) Non - GAAP Operating income / (loss) (3.3) (2.5) Q4'19 Q4'20 10.2 8.3 Q4'19 Q4'20 GAAP Net income / (loss) Non - GAAP Net income / (loss) (2.8) 11.0 Q4'19 Q4'20 10.0 7.0
Slide 18: Strong balance sheet / $23.7m OCF – highest since Q1 2018
Strong balance sheet / $23.7m OCF – highest since Q1 2018 18 $ in millions unless noted otherwise. All percentages rounded. Balance sheet items Cash Flow From Operating Activities (3.4) 23.7 (11.2) 27.8 Q4' 19 Q4' 20 2019 2020 Q4 - 19 Q3 - 20 Q4 - 20 Cash and Cash Equivalents and Short term deposits
Slide 19: 2021 Outlook
2021 Outlook 19 Building foundation for strong growth Revenue for the current quarter tracking relatively similar to Q1 2020 , despite current continued softness from key sectors like automotive and commercial aerospace, driven by the pandemic Expect 2Q revenue growth in mid teens compared to 2Q 202
Slide 20: CEO Summary
CEO Summary Additive manufacturing poised for exceptional growth 2020 internal reorganization + organic/inorganic activities position Stratasys to broaden leadership Strong momentum – well positioned for growth
Slide 21: Thank You: Q&A
Thank You: Q&A
Slide 22: Appendix
Appendix
Slide 23: GAAP to Non-GAAP Reconciliation
GAAP to Non - GAAP Reconciliation 23 Results of operations Stratasys Ltd Three months ended December 31, 2020 Three months ended December 31, 2019 GAAP Adjustments Non - GAAP GAAP Adjustments Non - GAAP Gross Profit (1) $66,019 $4,520 $70,539 $78,659 $5,294 $83,953 Operating income (Loss) (1,2) (2,5
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