Stratasys, Ltd. · NASDAQ:SSYS
Stratasys — Q3 2017 Earnings Presentation
21 slides from Stratasys's earnings presentation, Nov 14, 2017
Slide 1: Stratasys Q3 2017
ax STRATASYS Q3 2017 November 14th, 2017
Slide 2: Conference and Live Dial-in
Q3 2017 Conference and 5 Live Dial-in webcast details Sneakers Information Nan Levin Primary Dial-in: CEO 866-394-5776 International Dial- Lilach Payorski fine ides) 409-350-3596 Shane Glenn Participant VP, Investor Passcode: Relations 92508829 Live webcast and replay: https://edge.media- stratas S
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 concerning its expected results for 2017, are forward-looking statements reflecting management's curr
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 organizational focus — resulted in reduced expenses and improved operating profitability >» New product introductions and value adding enhancements experiencing positive traction — F123 Series and GrabCAD Print > H2000 Large Part FDM 3D Production Syst
Slide 6: Financial Update and Guidance
Lilach Payorski - CFO Shane Glenn — VP of Investor Relations Financial Update and Guidance
Slide 7: Financial Results
Financial Results Stratasys, Ltd. Change YOY| Change YOY YoY % —— ‘Total Revenue $157.2) $155.9) -0.8%| $157.2) $155.9) 0.8% Gross Profit 731 75.2| 1.6) 84.9) 81.8) 34 | - ‘% margin 46.9% 48.3% 2.1% 54.0%) 52.5% 3.6% Revenue 1% Operating Profit (Loss) 19.4) 69 125] 33 8.1 48 |% margin -12.3%| 4.4% 6
Slide 8: Financial Results — Revenue
Financial Results — Revenue Stratasys, Ltd. YoY % Product Revenue | | 2% System Revenue J 6% Consumable Revenue 1 3% Service Revenue 1 1% Customer support 1 5% (Sin millions unless noted otherwise) Total Revenue - Quarterly Trend @ Product @ Service $127 $121 $110 S118 $108 L ; ! L 316 416 Qi47 217
Slide 9: Financial Results — Gross Margin Trends
Financial Results — Gross Margin Trends Stratasys, Ltd. 48.3% Q317 52.5% 606% 38.7% Q316 416 Qi7 Q247 Q317 @ = Product Gross Margin @ Service Gross Margin. @ Total Gross Margin STRATASYS | AGLOBAL LEADER IN APPLIED ADDITIVE TECHNOLOGY.
Slide 10: Financial Results — Operating Expenses & Margin Trends
Financial Results —- Operating Expenses & Margin Trends Stratasys, Ltd. GAAP YoY % we 50.1% GAAP casey 39.8% 38.3% 38.7% Operating Exp. | 12% —— ~ 15.3% 13.9%| 15.1% 13.7% 14.0%| R&D Exp. | | 9% a4 QOHF f SG&A Exp. 13% i Non - GAAP’ 37.9% Non-GAAP 35.2% 34.6% 33.8% 34.3% Operating Exp. J 10% R&D Exp
Slide 11: Financial Results — Balance Sheet Summary & CF from operations
Financial Results — Balance Sheet Summary & CF from operations Stratasys, Ltd. lSelected balance sheet items \$ in millions) ICash and Cash Equivalents 3053 3028 | |Accounts Receivable 120.3 120.5 1 Inventories 116.5 124.1 1 INet Working Capital 4025 4198 1 [$ in millions) [Cash from operating activ
Slide 12: Lilach Payorski — CFO Financial Summary
Lilach Payorski — CFO Financial Summary * Pleased with shift in customer behavior characterized by large, multi-system orders * Leveraging innovation in high value applications for our technologies, while reducing operating expenses - increased full year earnings guidance * We continue to generate c
Slide 13: Revenue & Earnings Guidance
Revenue & Earnings Guidance Revenue (M) $655 - $670 5655 to $670 ($38) to ($31) GAAP Di (1) Stock Based Compensation Exp. 517018 Dil EPS (2) Intangible Assets Amortization Exp. $34 $(0 73) _ $(0 59) (@) Merger Related Expenses S3t0S4 - . oon and other related $6 to SB ; 5) Corresponding tax expense
Slide 14: Strategic Overview
STRATEGIC OVERVIEW
Slide 15: H2000 Large Part FDM 3D Production System
H2000 Large Part FDM 3D Production System H2000 transitions into commercialization phase + — Introduced as the Stratasys Infinite Build 3D Demonstrator in 2016 at IMTS + Developed in collaboration with the Boeing Company and the Ford Motor Company + Targets manufacturing applications by lowering the
Slide 16: F123 Series & GrabCAD Print
F123 SERIES & GRABCAD PRINT Positive market reaction and strong sales + One of the most successful Stratasys product launches for a rapid prototyping solution + Expands our addressable market to new customers, and deepens penetration at existing customers Continued traction for GrabCAD Print adoptio
Slide 17: GrabCAD Voxel Print
GrabCAD Voxel Print Combines voxel-level control with power of multi-material 3D printing + — New software solution for the J750 3D printing platform + Leverages PolyJet's unique full color, multi-material capability + Provides industry leading true voxel-level control during the design and 3D print
Slide 18: MakerBot Labs
MAKERBOT LABS Announced availability of MakerBot Labs, an experimental platform for engineers and developers to create, build, customize, and collaborate + Expanding desktop market to advanced users by providing freedom to develop new capabilities and applications while using MakerBot desktop 3D pri
Slide 19: Ilan Levin - CEO Summary & Outlook
llan Levin - CEO Summary & Outlook >» Pleased with progress in developing new products and value added enhancements and applications — expanding addressable markets > H2000 Large Part FDM 3D Production System transitioning into commercialization phase > Continued strong demand for F123 Series, and i
Slide 20: We Are A Global Additive Technology Solutions
WE ARE A GLOBAL LEADER IN APPLIED ADDI TECHNOLOGY SOLUTIONS
Slide 21: Reconciliation of GAAP to Non-GAAP - Results of Operations
Reconciliation of GAAP to Non-GAAP - Results of Operations Stratasys Ltd. {Three Months Ended September 30, 2017| Three Months Ended September 30, 204 J GAAP Adjustments | Non-GAAP | GAAP [Gross Profit (7) $75,239 $6,598 $81,837 $73,681 $11,248 $84,929 [Pperating income (Loss) (72) (673) | 14.933 8,