Stratasys, Ltd. · NASDAQ:SSYS
Stratasys — Q4 2017 Earnings Presentation
19 slides from Stratasys's earnings presentation, Feb 28, 2018
Slide 1: Q4 2017 Financial Results Conference Call
sz STRATASYS Q4 2017 FINANCIAL RESULTS CONFERENCE CALL February 28", 2018 stratasys
Slide 2: Conference and webcast details
Q4 2017 Conference and webcast details stratasys Live Dial-in Speakers Information Ilan Levin Primary Dial-in: CEO 866-394-5776 Lilach Payorski CFO Yonah Lloyd VP, Investor Relations International Dial- in: 409-350-3596 Participant Passcode: 3897278 Live webcast and replay: https://edge.media-server
Slide 3: Forward Looking Statement
Forward Looking Statement The statements in this presentation regarding Stratasys' strategy, and the statements regarding its projected future financial performance, including the financial guidance conceming its expected results for 2018, are forward-looking statements reflecting management's curre
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: Ilan Levin - CEO Opening Remarks
Ilan Levin - CEO Opening Remarks > Pleased with Q4 and full year 2017 results — strengthening customer relationships and deepening penetration in target verticals > Positive market reception to new product introductions throughout 2017 > Investments in go-to-market initiatives showing positive resul
Slide 6: Lilach Payorski - CFO Financial Update
Lilach Payorski - CFO Financial Update
Slide 7: Financial Results
Financial Results Stratasys, Ltd. Non-GaaP YoY % [Total Revenue $1753] $179.3) 23%| $1753) $1793 23% [Gross Prone a2s| era] 43] oa0f saa o4 1 |somargin 473%| 407%] 52%] 526%] s25%| 0.1% Revenue 2% [Operating Prof (oss) 02] 60 za) 116) 135 20 [margin -16.6%| 3.3% -79.5%| 66%) 7.6% 171% |Pre-tax Profi
Slide 8: Financial Results - Revenue
Financial Results —- Revenue Stratasys, Ltd. a Total Revenue - Quarterly Trend 7 aa 1s system Revenue L.. is Consumable Revenue i 4% 1 49 48 49 a Service Revenue 2% Customer Support 1 1% 2416 au17 9217 0317 a4'17 (S in milion:
Slide 9: Financial Results - Gross Margin Trends
Financial Results — Gross Margin Trends Stratasys, Ltd. GAAP aa's6 qu17 2'17 3'17 94'17 Non - GAAP
Slide 10: Financial Results - Operating Expenses & Margin Trends
Financial Results — Operating Expenses & Margin Trends Stratasys, Ltd. YoY % GAAP Operating Exp. J 17% R&D Exp. 1 9% SG&A Exp. J 24% Non-GAAP Operating Exp. SGR&A Exp. R&D Exp. 1 8% @ FED Expenses (% of sales) 0217 a3'17 © 204 expenses (of sates) 98'17 @ operating Margin
Slide 11: Balance Sheet Summary & Cash Flow from Operations
Financial Results — Balance Sheet Summary & Cash Flow from Operations - Stratasys, Ltd. [Selected Balance Sheet Items| |S in millions) |Cash and Cash Equivalents 2803 3288 1 Accounts Receivable 1204 1327 INet Working Capital 338.4 4516 inventories 1175 1187 J ($ in millions) [Cash from operating act
Slide 12: Lilach Payorski - CFO Financial Summary
Lilach Payorski - CFO Financial Summary + Maintaining financial discipline and observing continued improvements in profitability + Pleased with results of customer-centric product development + Continuing trend of positive cash generation and maintain a strong balance sheet + Well positioned to leve
Slide 13: Strategic Overview
STRATEGIC OVERVIEW
Slide 14: Stratasys Overview
STRATASYS OVERVIEW For nearly 30 years, Stratasys has been a global leader in the application of additive manufacturing technology solutions DEEP KNOWLEDGE BASE COMMITMENT TO R&D at SDM and largest installed _resulting in highly proliferated, base of industrial 3D printing _versatile, & stable FDM &
Slide 15: Investment Focus to Expand Addressable Markets
Investment Focus to Expand Addressable Markets Robotic Soule 3D Demonstrator Increasing investments in following areas: v Composite materials for advanced manufacturing applications + Composite materials increasingly playing critical role in the aerospace and automotive industries — significant grow
Slide 16: New Metal Platform
New Metal Platform Revealing internally developed metal additive manufacturing platform + New metal additive manufacturing platform for short run manufacturing applications + Incorporating proprietary jetting technology * Current conventional solutions limited due to high costs for tooling and labor
Slide 17: Revenue & Earnings Guidance
Revenue & Earnings Guidance Revenue (M) $670 - $700 . ERE GAAP Net Loss ($41) to ($25) GAAP Diluted EPS - (1) Stock-Based CompensationExpense = SITIOS (2) Intangible Assets Amortization Expense $32 to $34 $(0.75) - $(0.46) Ramen maar (4) Tax Expense Related to Non-GAAP Adjustments ($4) 10 (85) Non-G
Slide 18: We Are A Global Leader in Applied Additive Technology Solutions
WE ARE A GLOBAL LEADER IN APPLIED ADDI TECHNOLOGY SOLUTIONS .
Slide 19: Reconciliation of GAAP to Non-GAAP - Results of Operations
Reconciliation of GAAP to Non-GAAP - Results of Operations Stratasys Ltd. ‘Three Months Ended December 24, 2017 fearon Three Mi cane | Adjustments | Non-caar Mm caap | ths Ended December 21, 2016 357 206 ‘3,504 304,100 S82024 ‘311088 'S04017 [Poerating income (Less) (12) (6876 19518 13.542 (29,106 4