Stratasys, Ltd. · NASDAQ:SSYS
Stratasys — Q2 2017 Earnings Presentation
20 slides from Stratasys's earnings presentation, Aug 9, 2017
Slide 1: Q2 2017 Financial Results Conference Call
“ STRATASYS Q2 2017 FINANCIAL RESULTS CONFERENCE CALL August 9", 2017 4 STRATASYS 1 THE2D PRINTING SOLUTIONS COMEANY
Slide 2: Q2 2017 Conference and webcast details
Q2 2017 Conference and webcast details Live Dial-in Shearer Information et evita Primary Dial-in: Sze 866-394-5776 Lilach Payorski CFO Shane Glenn VP, Investor Relations International Dial- in: 409-350-3596 Pai ant Passcode: 48312906 Live webcast and replay:
Slide 3: Forward Looking Statement
3 Forward Looking Statement The statements in this presentation regarding Stratasys' strategy, and the statements regarding its projected future financial performance, including the financial guidance concerning its expected results for 2017, are forward-looking statements reflecting management's cu
Slide 4: Use of Non-GAAP financial information
Use of Non-GAAP financial information The following non-GAAP data, 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 investors and shareholders of our company in gauging our resu
Slide 5: Ilan Levin - CEO Opening Remarks
Ilan Levin - CEO Opening Remarks >» Pleased with progress as we focus on customer engagement in key vertical markets — observing higher quality revenue opportunities » Showcasing ability to leverage 3D printing expertise for manufacturing applications with significant recent Aerospace announcements
Slide 6: Financial Update and Guidance
Lilach Payorski —- CFO Shane Glenn — VP of Investor Relations Financial Update and Guidance
Slide 7: Financial Results
Financial Results Stratasys, Ltd. Ne yore ER ES SE EE WE SE oa : Revenue i [Operating Profit (Loss) 74 semargin 0.0% Pre-tax Profit (Lose) 62 semargin 4%) 7 Ta Ty) TE] 0%] 5%] 5.9%) 6.5% “aay 115 Tay 11 7%] 5%] 6.5%| 6.8% asta] 454%) 214% GAAP Gross Profit i 5% J 71% GAAP Operating loss a CZ 2 CC CE
Slide 8: Financial Results - Revenue
Financial Results —- Revenue Stratasys, Ltd. Yor % Total Revenue - Quaterly Trend Product Revenue | 2% © recict © Serie $124 S127 System Revenue 6% S110 Sits Consumable Revenue 1 2% Service Revenue 1 1% 545 ser stg a 549 Customer support 1 6% Q216 316 Q416 Qi i. (Sin millions unless noted otherwise)
Slide 9: Financial Results - Gross Margin Trends
Financial Results — Gross Margin Trends Stratasys, Ltd. GAAP 49.1% a2"7 53.0% 216 316 aat6 Qi7 27 @ Product Gross Margin @ Service Gross Margin @ Total Gross Margin |STRATASYS J THE 30 PRINTING SOLUTIONS COMPANY stratasys
Slide 10: Financial Results - Operating Expenses & Margin Trends
Financial Results — Operating Expenses & Margin Trends Stratasys, LTD. YoY % GAAP Operating Exp. | 9% R&D Exp | 5% SG8A Exp. J 10% Non-GAAP Operating Exp. J 8% R&D Exp. | 3% SG&A Exp J 10% Q216 316 416 Qi Q2"17 @ FED Expenses (% of sales) © sca expenses (06 of sales) @ overating Margin 40. STRATASYS
Slide 11: Financial Results - Balance Sheet Summary & CF from operations
Financial Results - Balance Sheet Summary & CF from operations Stratasys, Ltd. ‘ash and Cash Equivalents inventories 1160 85 let Working Capital 390.1 4025 41 STRATASYS J THE 3D PRINTING SOLUTIONS COMPANY stratasys
Slide 12: Lilach Payorski - CFO Financial Summary
Lilach Payorski —- CFO Financial Summary + Pleased with results of efforts to generate deeper engagement with customers in targeted industry verticals — observing higher quality revenue opportunities + Alignment of resources has resulted in reduced operating expenses + Favorable cash position provid
Slide 13: Revenue & Earnings Guidance
ry Revenue & Earnings Guidance Revenue (M) $645 - $680 GAAP Diluted EPS $(1.00) - $(0.73) Non-GAAP Diluted EPS $0.19 - $0.37 [STRATASYS 1 THE20 PRINTING SOLUTIONS COMPANY Reconciliation of GAAP to Non-GAAP. Guidance (Sinmions, xcept per share data) Revenue GAAP Net Loss (1) Stock-Based Compensation
Slide 14: Strategic Overview
STRATEGIC OVERVIEW
Slide 15: Aerospace Applications & Collaborations
AEROSPACE APPLICATIONS & COLLABORATIONS Important milestones towards adopting additive manufacturing in complex requirement applications: + Fortus 900mc Aircraft Interiors Certification Solution + New edition of the Fortus 900mc Production 3D Printer Aimed at Facilitating the 3D Printing of FAA- and
Slide 16: F123 Series Launch Update
F123 SERIES LAUNCH UPDATE Positive Market Reaction and Strong Sales + Over 1,000 systems ordered since February 2017 launch + The majority of orders to new customers + F123 developed to meet customer requirements for: + Reliability + Ease-of-Use + Accessibility + Fast Time-to-Part + Generating excit
Slide 17: MakerBot Education Announcements
MAKERBOT EDUCATION ANNOUNCEMENTS WwW, o= Strengthened MakerBot’s leadership in 3D printing for the education market with multiple announcements: + My MakerBot - Chromebook-compatible, in-browser platform that connects networked 3D printers, == ee Thingiverse account, orders and support cases all in
Slide 18: Ilan Levin - CEO Summary & Outlook
Ilan Levin - CEO Summary & Outlook > Recent aerospace-specific product and collaboration announcements demonstrate value of customer-centric approach > Pleased with market reaction and strong sales of F123 Series > Excited about Company's future and long-term growth potential
Slide 19: We Are Stratasys
WE ARE STRATASYS THE 3D PRINTING SOLUTIONS COMP
Slide 20: Reconciliation of GAAP to Non-GAAP - Results of Operations
Reconciliation of GAAP to Non-GAAP - Results of Operations Stratasys Ltd. » ing income (Loss) (1) (OAR Pietincome (Loss) attributable fo Statasys Ud. 2.3) (18,490) income (Loss) per diuted share atibutable to Lid, (4) (90.36) |i Aeauited inangibe assets amorizaton expense 5588 Impairment ‘of other i