Stratasys, Ltd. · NASDAQ:SSYS
Stratasys — Q1 2020 Earnings Presentation
24 slides from Stratasys's earnings presentation, May 14, 2020
Slide 1: Financial Results Conference Call
Financial Results = Conference Call * May 14, 2020 2x stratasys
Slide 2: Q1 2020 Conference call & webcast details
Q1 2020 Conference call & webcast details Speakers * Yoav Zeif -CEO « Lilach Payorski - CFO * Yonah Lloyd — VP Investor Relations Live webcast and replay: https://78449 themediaframe.com/dataconf/productusers/s svs/medinieemeel GAA? la clo bt Live dial-in information US Toll-Free dial-in: 1-877-407-
Slide 3: Forward-looking statements
Forward-looking statements The statements in this presentation regarding Stratasys’ strategy, and the statements regarding its projected future financial performance, including the financial guidance (or withdrawal of guidance) concerning its expected results for 2020, are forward-looking statements
Slide 4: Use of non-GAAP financial information
Use of non-GAAP financial information The non-GAAP data that appears below, 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
Slide 5: Opening Remarks: amidst an unprecedented global pandemic
Opening Remarks: amidst an unprecedented global pandemic
Slide 6: We're Making It Together
We’re Making It Together ¢ Travel restrictions implemented early « Work from home where possible + Stratasys operated as an “essential business” in all key U.S. locations « Rigorously follow safety and social distancing requirements in offices, labs and production facilities * Communicate with emplo
Slide 7: Our Response
Our Response
Slide 8: Stratasys COVID-19 Coalition
Stratasys COVID-19 Coalition ~150 $ Stratasys front-line recipient organizations BOEING Medtronic => @ een"D
Slide 9: Key COVID-19 actions
Key COVID-19 actions: for Europe’s largest hospital system SSR UeeEEE i
Slide 10: Key COVID-19 actions
Key COVID-19 actions: GRABCAD COMMUNITY Take part and earn money CoVent-19 Challenge 200+ submissions on GrabCAD for mechanical ventilator designs
Slide 11: Key COVID-19 actions
Key COVID-19 actions: Origin Nasal Swab Agreement 100k scaling to more than 1 million swabs/week
Slide 12: Pandemic is Accelerating Trends Towards 3D Printing
Pandemic is Accelerating Trends Towards 3D Printing Develop better Quickly retool Localize products faster production lines manufacturing
Slide 13: COVID-19 Financial Mitigation Measures
COVID-19 Financial Mitigation Measures Short term GM impact driven by reduced HVV/Materials in sales mix Expense Reduction Actions: Global 4-day work week Non-essential hiring freeze No merit increases Adjusted cost base / production plan Leverage 2019 inventory build-up Top-Line Growth Actions: Suc
Slide 14: J55 Digital Launch Event
Slide 15: J55 customer quote
The J55 doesn’t just change our delivery. It changes the amount of time we can deliver that in. It also changes our revenue model. It totally changes the game.”
Slide 16: Financial Update
Financial Update Well prepared to manage COVID-19 Strong balance sheet / No debt Cost control / Cash generation | Make it Better. Lilach —
Slide 17: Financial Results
Financial Results GAAP Q1-19 Q1-20 aire Total Revenue 155.3 132.9 -14.4% 155.3 132.9 -14.4% Gross Profit 76.5 59.9 (16.6) 80.7 64.3 (16.4) % Margin 49.2% A5 0% A2% 52.0% 484% -3.6% Operating Income (Loss) (3.3) (19.9) (16.6) 6.8 (8.4) (15.2) % Margin 21% -15.0% -12.9% AA% 63% -10.7% Net Income (Loss
Slide 18: Financial Results: Revenue
Financial Results Revenue Quarterly trend i663 163.2 157.5 160.2 as 432.9 Revenue Growth - Q1 ’20 50.2 : 51.1 YIY 497 Revenue YIY (exc. FX) Product -21% -20% System 40% -39% k 110.3 106.3 1054 83.2 Consumables 6% 5% Service -1% 1% Customer Support 42% +3% Qi19 Q219 Q3'19 Q4'19 Qt'20 Service m=Produc
Slide 19: Financial Results: Gross margin trends
Financial Results Gross margin trends GAAP 58.0% 573% 58.3% ores ee 49.2% 49.71% 49.2% 49.1% 45.0% 33.9% Qi'19 Q219 Q3 19 Q4"19 Q1'20 =@— Total Gross Margi Non-GAAP 61.8% 61.1% 62.3% 61.6% 57.9% 52.0% 52.5% 52.4% 52.4% —_ 48.4% 34.5% 31.3% 31.7% pores 32.4% Qi'19 Q2"19 Q3 19 Q4"19 Q1'20
Slide 20: Operating expenses and operating margin trends
Financial Results Operating expenses and operating margin trends 0% - 79.7 79.8 44% me 5.1% oy 0.5% Qi'19 Q1'20 GAAP Operating Expenses -2% Qi'19 Q2"19 Q3"19 Q4"19 Q1'20 —@®— GAAP Operating Margin —®=— Non-GAAP Operating Margin Q119 Q1°20 Non-GAAP Operating Expenses
Slide 21: Balance sheet summary and cash flow from operations
Balance sheet summary and cash flow from operations 11.3 46 Cash and Cash Equivalents and Short term deposits 367.8 3218 325.5 |] Accounts Receivable 128.4 1326 115.1 Inventories 131.7 168.5 1725 Net Working Capital 487.1 499.2 480.7 Qi19 Q1'20 Cash Flow From Operating Activities
Slide 22: Recap
Recap: Short-term uncertainty balanced by growth opportunities in H2 and beyond ¢ Capitalize on optimizing value of additive manufacturing ¢ Aligning spending to strategic growth priorities - Finalizing strategic plan for strong, sustainable growth Make it Better. Make it with Stratasys.
Slide 23: Thank You
Thank You Maka it Rottom
Slide 24: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation Results of operations Stratasys Ltd $ in millions unless noted otherwise. Gross Profit (1) Operating income (Loss) (1,2) Netincome (Loss) atrbutabe to Stratasys Ltd. (1,2.3) Three Months Ended March 31, 2019 s76457 | $4252 | $80,709 3271 | $1075 | $6,804 -2210 S777 |