Summary of Stratasys Ltd. Conference Call Company Overview - **Company**: Stratasys Ltd. (NASDAQ: SSYS) - **Industry**: 3D Printing, Additive Manufacturing - **Date of Conference**: January 13, 2022 Key Points Company Position and Strategy - Stratasys faced six years of declining revenues prior to the current leadership, with an aging portfolio and challenges from new technologies [3][4] - The company has shifted its focus to polymer manufacturing, aiming to address the largest profit pool in the industry and enhance its technological offerings [4][5] - New technologies added include DLP, SLA, and powder bed fusion, which have doubled the total addressable market [5][7] Market Dynamics - The 3D printing industry is experiencing a shift from prototyping to manufacturing, with significant potential in a $13 trillion addressable manufacturing market [12][13] - Supply chain issues are acting as a catalyst for the adoption of 3D printing, allowing for more flexible and distributed manufacturing solutions [11][16] Technological Advancements - Stratasys has launched new products aimed at mass production, including the SAF H350 and P3 technologies, which are designed for high-volume manufacturing [19][20] - The company is focusing on selling fleets of machines rather than individual units, indicating a shift in sales strategy [20][22] Market Segments - **Healthcare**: The fastest-growing segment for Stratasys, with significant opportunities in dental applications and anatomical models for surgical planning [24][27] - **Automotive and Aerospace**: Stratasys is well-positioned in these sectors, with partnerships with major OEMs like Volkswagen and Boom Supersonic [29][30] Materials and Software Strategy - Stratasys is adopting a controlled hybrid material model, allowing for a variety of materials to be used with its machines, which is critical for manufacturing success [33][35] - The company is transitioning towards a SaaS model for software, which is expected to generate recurring revenue and higher margins [39][42] Financial Outlook - The company is optimistic about organic growth driven by new technologies, an open material model, and a strong balance sheet [46][48] - The launch of new products in Q4 2021 and Q1 2022 is expected to contribute to growth [49] Conclusion - Stratasys is positioned for growth with a clear strategy focused on polymer manufacturing, technological advancements, and addressing supply chain challenges. The company aims to leverage its strong financial position to accelerate its growth strategy in the evolving 3D printing market.

Financial Data and Key Metrics - Total revenue for Q3 2021 was $159 million, up 24.3% YoY [25] - Product revenue grew 30.3% YoY to $108.9 million, with system revenue up 34.7% to $52.3 million [26] - Consumables revenue increased 26.6% YoY to $56.6 million [27] - Services revenue rose 13% YoY to $50.1 million, with Stratasys Direct service bureau up 25.4% YoY [27] - GAAP gross margin was 42.9%, compared to 38.9% in the same period last year [28] - Non-GAAP gross margin was 48.2%, up from 46.8% YoY [28] - GAAP operating loss was $21.9 million, compared to a loss of $404.3 million YoY [30] - Non-GAAP operating income was $1.8 million, compared to a loss of $1 million YoY [30] - Cash flow from operations was $3 million, marking 5 consecutive quarters of positive cash flow [30] Business Line Performance - Systems sales grew nearly 7% over Q3 2019, driven by manufacturing-focused systems [11] - Healthcare was the fastest-growing end-market, with strong dental sales, particularly the DentaJet system [16] - Stratasys Direct service bureau grew over 25% YoY, though not yet at 2019 levels [11] - Manufacturing business showed strong performance, particularly in automotive and industrials in Europe [25] Market Performance - Revenue growth was seen across all regions, with systems sales up 6.7% over Q3 2019 [25] - The U.S. Navy signed a $20 million deal for up to 25 F900 systems over 5 years, marking a significant government additive manufacturing deal [13] - A repeat purchase from a leading global OEM for multiple F900 systems was also secured [14] Strategy and Industry Competition - The company is focused on becoming the leader in polymer additive manufacturing, with a shift from prototyping to manufacturing [10] - Stratasys acquired the remaining 55% of Xaar 3D, gaining full control of SAF product development [15] - The company is launching new mass production offerings, including the Origin One and H350 systems [11] - Stratasys is leveraging its software platform, GrabCAD, to scale additive manufacturing, with the global additive manufacturing software market expected to reach $3.3 billion by 2026 [21] Management Commentary on Operating Environment and Future Outlook - Management highlighted the inflection point in additive manufacturing, with industries increasingly adopting 3D printing for production [9] - The company expects Q4 revenue to be approximately 16% higher than Q4 2020, driven by growth in systems and consumables [31] - Stratasys is in investment mode, with OpEx expected to be $36 million higher in 2021 due to acquisitions and higher operating costs [31] - The company anticipates strong purchasing cycles as new systems are brought to market, driving recurring revenues and long-term profitability [24] Other Important Information - Stratasys introduced ProtectAM, a data security solution for additive manufacturing, and GrabCAD Additive Manufacturing Platform [19][21] - The company collaborated with Adobe to make full-color 3D printing accessible for Adobe Substance 3D Painter users [23] - Stratasys technology was used in a successful operation to separate conjoined twins, showcasing its impact in healthcare [18] Q&A Session Summary Question: Revenue Guidance Assumptions - The revenue guide for Q4 includes some shipments from the U.S. Navy contract, with growth expected across all platforms and organic growth being the primary driver [41][42] Question: Contribution from New Products - Significant impact from new products like H350 and P3 is expected in 2022, with beta sites already producing end-use parts [43][87] Question: Mid-Range High-Speed Sintering Opportunity - Stratasys is optimistic about the SAF technology, with H350 being the first in a line of products, and believes it can compete with HP's offerings [46][47] Question: Repeat Customer for F900 Systems - The company confirmed a repeat purchase from a leading global OEM but did not disclose the customer's identity [50] Question: Future Technology and Process Expansion - Stratasys plans to focus on scaling existing technologies and materials while continuing to invest in R&D and software development [54][56] Question: Supply Chain and Labor Headwinds - The company experienced challenges with logistics and raw material shortages but managed to meet customer demand without significant delivery issues [58][59] Question: Customer Engagement and Timing - Customer engagement has increased, with shorter timelines and higher-level executives involved in discussions, indicating a more serious approach to 3D printing [62][63] Question: Inventory and Backlog - Stratasys is proactively managing inventory to meet customer demand, with a good backlog going into Q4 [65][66] Question: Margin Pressures and Normalized Gross Margins - Gross margins were pressured by logistics and raw material costs, with a 2 percentage point difference compared to 2019 levels [70][71] Question: OpEx and Xaar Revenue Contribution - OpEx is expected to increase in Q4 due to acquisitions and higher operating costs, with Xaar's contribution being minimal in 2021 [74] Question: Cash Flow and Working Capital - The company expects to generate positive cash flow in 2021, with increased inventory levels and related payments impacting operating cash outflow [76] Question: Revenue Acceleration in 2022 - Stratasys expects revenue acceleration in 2022, driven by new technologies, materials, and software, with significant growth anticipated from H350 and P3 [79][81] Question: New Product Contribution in 2022 - The company did not provide specific growth contributions from new products for 2022 but indicated optimism about their impact [84] Question: Stratasys Direct Business Recovery - The recovery in Stratasys Direct is attributed to industry recovery, with strong performance in aerospace, automotive, and high-end markets [89] Question: OpEx Growth in 2022 - OpEx as a percentage of revenue is expected to decrease, with the company committed to improving profitability [94] Question: Acquisition Contribution to Revenue - The company did not provide specific dollar contributions from acquisitions but highlighted the positive traction from RPS [99][100] Question: Core Business Growth in 2022 - Stratasys expects core business growth to return to pre-COVID levels in 2022, with additional contributions from new products [104][106]

Stratasys Ltd. (NASDAQ:SSYS) Q2 2021 Earnings Conference Call August 5, 2021 8:30 AM ET Company Participants Yonah Lloyd - CCO and VP, IR Yoav Zeif - CEO Lilach Payorski - CFO Conference Call Participants Shannon Cross - Cross Research Wamsi Mohan - Bank of America Brian Drab - William Blair Noelle Dilts - Stifel Paul Chung - JP Morgan Troy Jensen - Lake Street Capital Markets Jim Ricchiuti - Needham & Company Ananda Baruah - Loop Capital Greg Palm - Craig-Hallum Operator Hello and welcome to Stratasys' Q2 ...

Summary of Stratasys Ltd. Conference Call Company Overview - **Company**: Stratasys Ltd. (NASDAQ: SSYS) - **Market Cap**: $1.6 billion [2] - **Participants**: - Yoav Zeif - CEO - Lilach Payorski - CFO [1][3] Industry Insights - **Industry**: Additive Manufacturing (3D Printing) - **Current Trends**: Increased activity and interest in the 3D printing industry, with a notable shift from prototyping to production [4][8] - **Technological Evolution**: The additive manufacturing industry has significantly evolved over the past six years, with improvements in accuracy, quality, and cost-effectiveness [5][6] - **Supply Chain Resilience**: The pandemic highlighted the need for flexible and agile production methods, which additive manufacturing can provide [7] Company Strategy and Focus - **Focus on Polymers**: Stratasys is concentrating on the polymer 3D printing market, which is expected to represent 60-65% of overall market demand by 2025 [16][17] - **Technological Leadership**: The company has developed five technologies to address customer needs from prototyping to mass manufacturing [17] - **Recent Acquisitions**: - **Origin**: A DLP machine company that enhances Stratasys's capabilities in manufacturing [26][28] - **RPS**: Known for heavy-duty industrial SLA machines, expanding Stratasys's presence in the medical sector [30] Market Recovery and Growth - **Recovery Dynamics**: The recovery from the pandemic varies by region, with the U.S. recovering faster than Europe and Japan [13][14] - **End Market Performance**: The medical industry is recovering the fastest, followed by aerospace and automotive sectors [14] - **Sales Growth**: Stratasys reported a 41% increase in hardware sales in Q1, driven by a growing installed base [14] Product Innovations - **New Technologies**: Introduction of new systems aimed at manufacturing, expected to drive growth rates above 20% in the coming years [19][20] - **DentaJet and MetaJet**: New dental and medical 3D printers that enhance Stratasys's offerings in the healthcare sector [32][35] Financial Outlook - **Gross Margin Challenges**: The company anticipates continued gross margin headwinds due to global economic constraints and rising material costs [41][43] - **Capital Allocation**: Stratasys has a strong cash position with no debt, allowing for investments in product development and market expansion [45][46] - **Long-term Growth Strategy**: Emphasis on profitable growth through infrastructure scaling and leveraging innovative technologies [48] Key Takeaways - **Inflection Point**: The additive manufacturing industry is at a critical juncture, transitioning towards production capabilities [8] - **Customer Relationships**: Strong long-term relationships with major customers in aerospace and automotive sectors [37][39] - **Future Focus**: Stratasys aims to capitalize on its technological advancements and market position to drive profitable growth over the next three years and beyond [48]

Stratasys Ltd. (NASDAQ:SSYS) Q1 2021 Earnings Conference Call May 5, 2021 8:30 AM ET Company Participants Yonah Lloyd – Vice President Investor Relations Yoav Zeif – Chief Executive Officer Lilach Payorski – Chief Financial Officer Conference Call Participants Shannon Cross – Cross Research Troy Jensen – Lake Street Capital David Mizrahi – Berenberg Noelle Dilts – Stifel Greg Palm – Craig-Hallum Capital Group Brian Drab – William Blair Wamsi Mohan – Bank of America Ananda Baruah – Loop Capital Markets Opera ...