Nlight, Inc. · NASDAQ:LASR
Nlight — Q4 2020 Earnings Presentation
19 slides from Nlight's earnings presentation, Feb 17, 2021
Slide 1: Earnings Presentation Q4 2020
This presentation contains nLIGHT, Inc. proprietary information. No part of it may be circulated, quoted, or reproduced for distribution without prior written approval from nLIGHT, Inc. Earnings Presentation Q4 2020 February 17, 2021
Slide 2: Forward-looking statements
2 Certain statements in this presentation are “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995. Words such as “outlook
Slide 3: 2020 Revenue | record revenue – 26% y-o-y growth
3 2020 Revenue | record revenue – 26% y-o-y growth in line with historical CAGR nLIGHT Worldwide Annual Revenue $ Millions YOY Growth 37% 16% 37% 38% -8% 26% $63 $87 $101 $139 $191 $177 $223 $0 $50 $100 $150 $200 $250 2014 2015 2016 2017 2018 2019 2020 CAGR 23%
Slide 4: 2020 Revenue | 26% growth driven by Aerospace & Defense and Industrial
4 19% 15% 18% 24% 39%47% 44% 39% 32% 23% 34% 41% 43% 43% 38% $101 $139 $191 $177 $223 $0 $50 $100 $150 $200 $250 2016 2017 2018 2019 2020 2020 Revenue | 26% growth driven by both Aerospace & Defense and Industrial Industrial +10% Microfabrication -10% Aerospace & Defense +102% Market ‘20 vs. ‘19 Cha
Slide 5: 2020 Revenue | growth in all geographies
5 2020 Revenue | growth in all geographies 62% 60% 63% 64% 68% 38% 40% 37% 36% 32% $101 $139 $191 $177 $223 $0 $50 $100 $150 $200 $250 2016 2017 2018 2019 2020 China +10% ROW +35% Geography ‘20 vs. ‘19 Change Annual Revenue – Geography $ Millions Percentages may not total to 100 due to rounding
Slide 6: Q4 Revenue | record revenue – 53% y-o-y growth
6 Q4 Revenue | record revenue – 53% y-o-y growth driven by growth in all markets Quarterly Revenue – Market $ Millions 19% 19% 17% 20% 18% 14% 14% 16% 18% 13% 20% 21% 22% 19% 26% 30% 39% 29% 42% 44% 51% 46% 50% 42% 44% 46% 45% 40% 37% 38% 39% 41% 35% 38% 30% 26% 24% 27% 23% 20% 28% 35% 33% 38% 38% 4
Slide 7: Q4 Revenue | growth in both China and Rest of World
7 71% 59% 60% 60% 60% 57% 60% 62% 64% 54% 67% 68% 67% 62% 60% 65% 72% 59% 69% 72% 29% 41% 40% 40% 40% 43% 40% 38% 36% 46% 33% 32% 33% 38% 40% 35% 28% 41% 31% 28% $22 $25 $26 $29 $30 $35 $37 $37 $42 $52 $51 $46 $42 $48 $44 $43 $43 $52 $62 $66 $0 $10 $20 $30 $40 $50 $60 $70 Q116 Q216 Q316 Q416 Q117 Q2
Slide 8: Financial Update
Financial Update
Slide 9: Summary Financial Results | Revenue and Gross Margin
9 Summary Financial Results | Revenue and Gross Margin Full Year 2020 and Q4 2020 $ Millions; % of Revenue Q4 2019 Q4 2020 2019 2020 Total Revenue $42.9 $65.7 $176.6 $222.8 Products Revenue 40.3 51.7 174.1 184.8 Development Revenue 2.6 14.0 2.6 37.9 Gross Margin 23.3% 29.9% 29.6% 26.6% Products Marg
Slide 10: Gross Margin | Product and Development Revenue and Gross Margin
10 Gross Margin | Product and Development Revenue and Gross Margin - Quarterly $ Millions; % of Revenue 15% 24% 22% 29% 30% 31% 34% 33% 35% 34% 35% 36% 32% 33% 30% 23% 22% 25% 28% 30% 24% 24% 28% 32% 36% 0% 5% 10% 15% 20% 25% 30% 35% 40% $0 $10 $20 $30 $40 $50 $60 $70 Q116 Q216 Q316 Q416 Q117 Q217 Q
Slide 11: Operating Expenses | R&D and SG&A
11 6.1 6.7 6.3 6.7 7.0 7.2 6.9 7.8 6.1 6.2 6.4 6.5 4.3 4.7 5.0 5.8 5.9 5.8 6.0 7.2 6.8 7.2 8.6 8.9 $10.4 $11.4 $11.3 $12.5 $12.9 $13.0 $12.9 $15.0 $12.9 $13.4 $15.0 $15.4 24% 22% 22% 27% 31% 27% 29% 35% 30% 26% 24% 23% 0% 5% 10% 15% 20% 25% 30% 35% 40% $0 $2 $4 $6 $8 $10 $12 $14 $16 Q118 Q218 Q318 Q
Slide 12: Summary Financial Results | Profitability and Cash Flow
12 * See Appendix for reconciliation to most directly comparable GAAP measure Q4 2019 Q4 2020 2019 2020 Net Income (Loss) ($10.7) ($4.5) ($12.9) ($20.9) Non-GAAP Net Income* (2.1) 5.2 1.1 7.3 EPS (diluted) (0.29) (0.12) (0.35) (0.55) Non-GAAP EPS (diluted)* (0.06) 0.12 0.03 0.17 Adjusted EBITDA (non
Slide 13: Strong Balance Sheet and Working Capital Management
13 Strong Balance Sheet and Working Capital Management $35 $41 $42 $46 $46 $49 $51 $53 $55 109 121 116 128 126 128 115 105 106 0 15 30 45 60 75 90 105 120 135 $0 $10 $20 $30 $40 $50 $60 $70 Q418 Q219 Q419 Q220 Q420 Inventory ($M) and Days of Inventory (DOI) Inventory DOI $27 $30 $31 $29 $27 $27 $24
Slide 14: Outlook | Q1 2021
14 • Q1 2021 Revenues of $56 million to $62 million; midpoint of $59 million – Laser Products: approximately $47 million at midpoint – Advanced Development: approximately $12 million at midpoint • Q1 2021 Gross Margin of 25% to 29% – Laser Products: 30% to 34% – Advanced Development: approximately 6
Slide 15: Well Positioned for Future Growth
15 Well Positioned for Future Growth Market Strategy Financials Growing market driven by improvement in laser technology and end market catalysts Vertically integrated with leading technology focused on rest of world industrial and aerospace and defense markets Track record of growth and margin expa
Slide 16: Simply brilliant
Vee eCceee Simply brilliant
Slide 17: Appendix
Appendix
Slide 18: Key Revenue Metrics
18 Key Revenue Metrics - Percentages may not total to 100 due to rounding FY 2016 Q117 Q217 Q317 Q417 FY 2017 Q118 Q218 Q318 Q418 FY 2018 Q119 Q219 Q319 Q419 FY 2019 Q120 Q220 Q320 Q420 FY 2020 Revenues by end market Industrial 34,674 11,268 13,828 15,208 16,318 56,622 19,146 25,251 20,890 17,476 82
Slide 19: GAAP to Non-GAAP Reconciliation
19 GAAP to Non-GAAP Reconciliation (1) There is no income tax effect related to the stock-based compensation, acquisition and integration-related costs, and amortization of purchased intangibles adjustments due to the full valuation allowance in the U.S. FY 2016 Q117 Q217 Q317 Q417 FY 2017 Q118 Q218