Stratasys, Ltd. · NASDAQ:SSYS
Stratasys — Q3 2020 Earnings Presentation
18 slides from Stratasys's earnings presentation, Nov 12, 2020
Slide 1: Stratasys Q3 2020 Financial Results Conference Call
1 1 S t r a t asy s Q3 2020 Financial Results Conference Call November 12, 2020 Stratasys
Slide 2: Q3 2020 Conference call & webcast details
Q3 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 sys/mediaframe/41658/indexl.html Live dial - in information US Toll - Free dial - in: 1
Slide 3: Forward-looking statements
Fo r w ard - lo o k in g 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 - lookin
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, constitutes non - GAAP financial measures . Our management believes that these non - GAAP financial measures are useful information for investors and shareholders of our c
Slide 5: CEO Opening Remarks
Yoav Zeif CEO Opening Remarks: Sequential improvement in top and bottom line. Our polymer leadership strategy is on track. Make it Better. Make it with Stratasys .
Slide 6: Focused on executing polymer 3D printing leadership strategy
Stratsys Laser - focused on executing polymer 3D printing leadership strategy deliver innovation empower management streamline organization leverage go - to - market
Slide 7: Refreshed team with deep, global experience in public companies
Refreshed team with deep, global experience in public companies 7 Stratasys Nava Kazaz CPO New Yossi Azarzar COO New Guy Menchik CTO Promoted internally Yoav Zeif CEO New
Slide 8: Technology roadmap: PBF, VAT, FDM and PolyJet innovations
Technology roadmap: PBF, VAT, FDM and PolyJet innovations Delivering end - to - end digital manufacturing for Industry 4.0 • PBF coming • FDM upgrades • PolyJet upgrades • VAT expansion • Digital / Fast / Robust / Connected Full suite of connected industrial polymer solutions 8 Stratasys
Slide 9: Polymer MFG leadership strategy in action
Polymer MFG leadership strategy in action: 9 Stratasys Boeing Qualifies New Stratasys Material for 3D Printed Flight Parts Medal - Winning Performance at U.S. Air Force Additive Manufacturing Olympics
Slide 10: CFO Financial Update
Lilach Pay o r sk i CFO Financial Update Make it Better. Make it with Stratasys . 8.8% sequential revenue growth Strong balance sheet / No debt
Slide 11: Financial Results
Financial Results $ in millions unless noted otherwise All numbers and percentages rounded 11 Stratasys
Slide 12: Revenue 8.8% sequential growth
Revenue 8.8% sequential growth $ in millions unless noted otherwise All numbers and percentages rounded Revenue Growth – Q3 ’20 Revenue Y/Y Product - 21.4% System - 20.8% Consumables - 22.0% Service - 13.2% Customer Support - 1.6% 12 Stratasys 106 .3 109 .0 83 .2 73 .9 83 .6 51 .1 51 .2 49 .7 43 .7
Slide 13: Gross Margins
Gross Margins Sequential improvement – higher consumables in the mix All percentages rounded GAAP 52.4% 52.4% 48.4% 45 . 4% 46.8% 62 . 3 % 61 . 6 % 57 . 9 % 52. 9 % 54 . 9 % 31 . 7 % 32 . 9 % 32 . 4 % 32. 7 % 31 . 3 % Q3 '19 Q4 '19 Q1 '20 Q2 '20 Q3 '20 Non - GAAP 49.2% 49.1% 45.0% 37.2% 58 . 3 % 57
Slide 14: Operating Expenses
Q3 '19 Q3 '20 GAAP Operating Expenses * 454.1 Q3 '19 Q3 '20 Non - GAAP Operating Expenses 74.4 60.8 Operating Expenses 18.3% YoY non - GAAP OpEx reduction - 18.3% 444.7% 14 Stratasys *Mainly due to goodwill impairment of $386.2 $ in millions unless noted otherwise All numbers and percentages rounded
Slide 15: Balance sheet summary and cash flow from operations
Balance sheet summary and cash flow from operations $2.6m cash from operations, healthy balance sheet, no debt 2.6 (8.6) Q3' 19 Q3' 20 Cash Flow From Operating Activities 15 Stratasys $ in millions unless noted otherwise All numbers and percentages rounded
Slide 16: CEO summary
CEO summary We have a clear strategy — with next - gen technology innovation at its heart — to lead in polymer additive manufacturing 16 Stratasys
Slide 17: Thank You: Q&A
Thank You: Q & A 17 Stratasys
Slide 18: GAAP to Non-GAAP Reconciliation
GAAP to Non - GAAP Reconciliation Results of operations Stratasys Ltd $ in thousands unless noted otherwise 18 Stratasys Three Months Ended September 30, 2020 GAAP Adjustments Non - GAAP Three Months Ended September 30, 2019 GAAP Adjustments Non - GAAP Gross Profit (1) $49,769 $10 , 03 6 $59,805 $77