Slide 1: Q2 2015 Financial Results Conference Call
Q2 2015 Financial Results Conference Call
Slide 2: Q2 2015 Conference and webcast details
Q2 2015 Conference and webcast details Live Dial-in Information Primary Dial-in: 800-901-5241 International Dial-in: 617-786-2963 Participant Passcode: 55067799 Live webcast and replay: http://edge.media-server.com/m/p/izi2aqma Speakers David Reis CEO Erez Simha COO & CFO Shane Glenn VP, Investor Re
Slide 3: Forward looking statement
Stratasys Forward looking statement Certain statements in this press 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 stateme
Slide 4: Summary & Outlook
Summary & Outlook Second quarter represented a continuation of challenging market environment we observed in first quarter Transitioning through temporary period of slower growth as customers digest investments in 3D printing and expand capacity utilization Observing positive trends in key verticals
Slide 5: Results: Quarter Highlights
Financial Results Stratasys Ltd. Non-GAAP Q2-14 Q2-15 Change YOY Unit Sales 14,909 6,731 -54.9% Total Revenue $178.5 $182.3 +2.2% Revenue/ Employee 0.084 0.062 -26.6% Gross Profit % margin 106.7 59.8% 99.7 54.7% -6.5% Operating Expenses % of sales 78.0 43.7% 96.1 52.7% +23.2% Operating Profit % marg
Slide 6: Results: Revenue
Financial Results Revenue Stratasys Ltd. Non-GAAP Total Revenue - Quarter Total Revenue – Quarterly Trend Product Service Product Service System Revenue 21% YOY Consumable Revenue 6% YOY Customer Support Revenue 17% YOY ($ in millions unless noted otherwise) $160.2 $168.6 $126.7 $134.5 $43.4 $48.5 $
Slide 7: Results: System Unit Sales
Financial Results Decrease in unit sales relative to prior periods driven by lower than expected MakerBot unit volumes Observing sequential improvement in high-end Fortus and Connex lines Strong sales of Solidscape line The Company sold 6,731 3D printing and additive manufacturing systems during the
Slide 8: Results: Gross Profit
Financial Results Decline in gross margin driven primarily by the inclusion of Solid Concepts and Harvest Technologies acquisitions Product gross margin improved sequentially, driven by a mix that favored higher-end system sales Gross Profit Stratasys Ltd. Non-GAAP Q2-14 Q2-15 % Change YOY Product R
Slide 9: Results: Operating Profit
Financial Results R&D expansion driven by increased headcount, and an acceleration of system and material development SG&A expansion driven by the impact of acquisitions Operating Profit Stratasys Ltd. Non-GAAP Operating Profit Analysis – Quarterly Trend Q2-14 Q2-15 % Change YOY R&D Expense % of sal
Slide 10: Results: Revenue Geographic Mix
Financial Results Results reflect an emerging recovery in North America Expect to see continued improvement in North America and EMEA in third quarter 2015 APAC expected to remain weak in third quarter 2015 given macroeconomic headwinds within the region Revenue Geographic Mix Stratasys Ltd. Non-GAA
Slide 11: Results: Balance Sheet Summary
Financial Results $503 million in cash and cash equivalents & bank deposits, which includes a total of $175 million in cash from a drawdown on the Company’s revolving credit facility Utilized $15.6 million in cash for operating activities in Q2 2015 Balance Sheet Summary Stratasys Ltd. Selected bala
Slide 12: Quarter Highlights
Quarter Highlights Results lower than expected across most geographies and industries compared to growth levels experienced historically Observing signs of recovery in North America and Europe, with Asia-Pacific and MakerBot expected to remain a headwind in the third quarter Making short-term adjust
Slide 13: Guidance: Q3-2015 Financial Guidance
Financial Guidance Stratasys Ltd. Revenue & Earnings Guidance Non-GAAP $175-190M $0.03-$0.13 Revenue (M) Non-GAAP Diluted EPS Q3-2015 Financial Guidance Reconciliation of GAAP to Non-GAAP Guidance ($ in millions, except per share data) Revenue $175 to $190 Non-GAAP Net Income $1.5 to $7 (1) Stock-Ba
Slide 14: Guidance: Long-Term Target Operating Model
Financial Guidance Stratasys Ltd. Long-Term Target Operating Model Non-GAAP +25% Revenue growth 18%–23% Operating margin 10%–15% Effective tax rate 16%–21% Net income margin of sales of sales 14
Slide 15: Strategic Investment Plan: Long-Term Opportunity Unchanged
Strategic Investment Plan: Long-Term Opportunity Unchanged Industry Focus 01 Services 02 Product Development 04 Sales and Marketing Infrastructure 03 15
Slide 16: Market Enthusiasm Remains High
Market Enthusiasm Remains High Connecting with Channel and Customers Stratasys Direct Manufacturing Connect + Discover Summit 2015 Stratasys EMEA Partner Meeting Hosted 239 of our Stratasys Direct Manufacturing customers at inaugural SDM Connect + Discover Summit Successful seminars, workshops, and
Slide 17: Enhancing Channel and Go-to-Market
Enhancing Channel and Go-to-Market Strengthening regional coverage Enhancing manufacturing and design reach Significant MakerBot retail expansion and regional reorganization Channel Additions Strengthening our presence in Germany, Switzerland, and Austria through the acquisition of a key German chan
Slide 18: Vertical Adoption: Dental
Vertical Adoption: Dental Stratasys Dental Applications Encouraging trends emerging in adoption of 3D printing technology in key verticals A leading manufacturer of clear orthodontic aligners recently expanded its install base of Stratasys Objet Eden500V 3D Printers by 30% Customer produces 100% of
Slide 19: Summary & Outlook
Summary & Outlook Fundamental growth drivers of 3D printing and additive manufacturing industry remain unchanged Encouraged by areas of sequential improvement in our business, and remain optimistic about our longer-term growth prospects Transitioning through period of slower growth as customers dige
Slide 20: We are Stratasys
We are Stratasys We are innovation We are fearless leaders We are customer driven Our quality matters Our people make the difference
Slide 21: Reconciliation of GAAP to Non-GAAP Results of Operations
Reconciliation of GAAP to Non-GAAP Results of Operations Stratasys Ltd. ($ in thousands except per share data) Q2-14 Q2-15 GAAP Adjustments Non-GAAP GAAP Adjustments Non-GAAP Net sales Products $154,090 $ - $154,090 $134,490 $ - $134,490 Services 24,375 - 24,375 47,832 - 47,832 Cost of sales Product
Slide 22: Reconciliation of Non-GAAP Adjustments
Reconciliation of Non-GAAP Adjustments Stratasys Ltd. ($ in thousands) Q2-14 Q2-15 Net sales, products Deferred revenue step-up $- $- Cost of sales, products Acquired intangible assets amortization (14,029) (12,301) Non-cash stock-based compensation expense (710) (1,237) Reorganization and other rel