Slide 1: Q2 2023 Results
Q2 2023 Results Speakers Dr. Yoav Zeif, CEO Eitan Zamir, CFO Yonah Lloyd, CCO & VP IR August 9, 2023
Slide 2: Conference Call and Webcast Details
Conference Call and Webcast Details US Toll-Free Dial-In 1-877-407-0619 International Dial-In 1-412-902-1012 Live Webcast and Replay https://event.choruscall.com/mediaframe/webcast. html?webcastid=B8jlZNVs 2 2
Slide 3: Forward-Looking Statements
Forward-Looking Statements Cautionary Statement Regarding Forward- Looking Statements The statements in this slide presentation regarding Stratasys' strategy, and the statements regarding its projected future financial performance, including the financial guidance concerning its expected results for
Slide 4: Use of Non-GAAP Financial Information
Use of Non-GAAP Financial Information 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 investors and shareh
Slide 5: Dr. Yoav Zeif
Dr. Yoav Zeif CEO ▪ Working closely with 3D Systems during due diligence ▪ Strong Q2 results with record recurring consumables and customer service revenue ▪ Winning strategy on track for $1 billion revenue by 2026 with substantial profitability; Merger with Desktop Metal bolsters this expectation f
Slide 6: New Dental Solutions Seeing Rapid Adoption
New Dental Solutions Seeing Rapid Adoption Top 5 US denture producers committed or likely to buy new TrueDent solution ▪ Only FDA-cleared full color monolithic 3D printed dentures solution on the market ▪ On track for European market availability next year / engaged with top 10 European dentures pro
Slide 7: Industrial Momentum Across Verticals
Industrial Momentum Across Verticals F900 FDM Systems PA12 – World’s Most Walkinshaw Andretti Peugeot Integrates Sold to BMW, Lucid, Popular Powder Bed United Names 3DFashion into US Air Force and Fusion Material – Stratasys FDM its 3D Inception Concept COMAC Now Available for Printing Technology Ve
Slide 8: Innovating and Scaling Personalized Healthcare
Innovating and Scaling Personalized Healthcare Agreement With CollPlant for Industrial Stratasys Partner Axial3D Achieves Scale Bioprinting Development FDA Certification Milestone ▪ Initial focus on $2.6 billion regenerative breast ▪ Patient-specific surgical solutions from implant market opportunit
Slide 9: Growing Software and Materials Revenue
Growing Software and Materials Revenue GrabCAD Driving Meaningful Foundations for Successfully Completed Growth Acquisition of Covestro AM ▪ Paid GrabCAD Print Pro software announced early Q2 Materials Business ▪ Designed to improve efficiency of print preparation for FDM ▪ Portfolio of 60 different
Slide 10: CFO Remarks
CFO Remarks Suggest more innovation- focused / modern image on this slide Eitan Zamir CFO ▪ Solid results in a persistently challenging CapEx environment ▪ Efficiencies led to both gross and operating margin improvements ▪ Driving further efficiencies across our platform General Atomics Aeronautical
Slide 11: Financial Results
Financial Results GAAP Non-GAAP Q2-22 Q2-23 Change Y/Y Q2-22 Q2-23 Change Y/Y Total Revenue 166.6 159.8 -4.1% 166.6 159.8 -4.1% Gross Profit 67.4 66.2 (1.2) 79.3 77.5 (1.8) ▪ % Margin 40.5% 41.5% 1.0% 47.6% 48.5% 0.9% Operating Income (Loss) (23.5) (33.7) (10.2) 1.9 5.0 3.1 ▪ % Margin -14.1% -21.1%
Slide 12: Record Consumables and Customer Service Revenue
Record Consumables and Customer Service Revenue Revenue of $159.8 million up 2.0% at Product revenue down 5.7% vs. Q2 2022, Services revenue flat YoY and up 4.1% to constant currency and adjusted for up 1.5% adjusted for MakerBot and at record-level excluding Stratasys Direct and MakerBot, down 4.1%
Slide 13: Gross Margin Improvement
Gross Margin Improvement Gross margins positively impacted by MakerBot carve-out and lower freight costs GAAP Non-GAAP Product Gross Margin Total Gross Margin Service Gross Margin 50.1% 49.4% 56.7% 47.2% 47.7% 47.2% 53.6% 54.7% 53.8% 43.6% 43.1% 43.8% 48.5% 48.4% 52.3% 41.5% 47.6% 47.3% 40.5% 48.5%
Slide 14: Operating Expenses Reflect Business Model Scalability
Operating Expenses Reflect Business Model Scalability GAAP Non-GAAP operating expenses operating expenses Operating expense (absolute and as a percentage of revenues) reduction story (absolute and as a percentage of revenues) 54.6% 62.5% continues, with ongoing operational efficiency 46.4% 45.4% imp
Slide 15: Eighth Straight Quarter of Positive Adjusted EPS
Eighth Straight Quarter of Non-GAAP operating Positive Adjusted EPS income improvement GAAP operating loss Non-GAAP operating income driven by Non-GAAP OPEX improvement, (1.2% in Q2’22 vs 3.1% in Q2’23 out of total revenue) 5.0 (23.5) 1.9 more than offsetting (33.7) Q2’22 Q2’23 revenue decline Non-G
Slide 16: Strong Balance Sheet and Responsible Use of Cash
Strong Balance Sheet Cash use was primarily and Responsible Use of driven by annual incentive Cash payments, increased accounts receivable, and Balance sheet items Cash flow from costs associated to operating activities acquisitions, proxy contests Q2-22 - Q1-23 - Q2-23 - and related professional fe
Slide 17: 2023 – Reiterating Revenue Outlook
2023 – Reiterating Revenue Outlook $.12 - $.24 $630-670M $290-300M EPS-diluted-adj Revenue Non-GAAP OPEX ($1.66) – ($1.39)1 GAAP EPS-diluted 48-49% 2.5-3.5% $35-50M Non-GAAP Operating $20-25M EBITDA-adj Gross Margins Margins CAPEX Targeting over 50% in 2024 Improving through year Note: 1 GAAP outloo
Slide 18: Reiterating Medium-Term Outlook
Reiterating Medium-Term Outlook 2024 2026 Non-GAAP gross margins above 50%, Revenues exceeding $1 billion, Positive free cash flow Adjusted EBITDA over 15% of revenues Innovation continues to drive growth as we penetrate further into manufacturing and healthcare applications.
Slide 19: CEO Summary
CEO Summary Dr. Yoav Zeif CEO ▪ Our team is laser focused on continuously strengthening customer engagement and business results ▪ 3D printing is helping our customers navigate a volatile and uncertain business environment – delivering agility, flexibility and profitability to global manufacturing ▪
Slide 20: Thank You!
Thank You!
Slide 21: Appendix
Appendix Three months ended June 30, 2023 Three months ended June 30, 2022 GAAP Adjustments Non-GAAP GAAP Adjustments Non-GAAP Gross Profit (1) $66,222 $11,283 $77,505 $67,393 $11,914 $79,307 Operating income (Loss) (1,2) (33,659) 38,666 5,007 (23,545) 25,479 1,934 Net income (Loss) (1,2,3) (38,615)