| --- | --- | --- | --- | |--------------------------|-------|-------|-------| | | | | | | | | | | | | | | | | | | | | | Q3 2024 | | | | | Results | | | | | Speakers | | | | | Dr. Yoav Zeif, CEO | | | | | Eitan Zamir, CFO | | | | | Yonah Lloyd, CCO & VP IR | | | | | November 13, 2024 | | | | Make additive work for you Conference Call | --- | --- | --- | |------------------------------------------|-------|-------| | | | | | and Webcast Details | | | | | | | | | | | | US Toll-Free Dial-In | | | | 1-877-407-06 ...

Earnings Performance - Stratasys reported quarterly earnings of $0 01 per share, beating the Zacks Consensus Estimate of a loss of $0 02 per share, representing an earnings surprise of 150% [1] - The company's earnings per share (EPS) for the same quarter last year was $0 04 per share [1] - Over the last four quarters, the company has surpassed consensus EPS estimates two times [2] Revenue Performance - Stratasys posted revenues of $140 01 million for the quarter ended September 2024, missing the Zacks Consensus Estimate by 3 08% [2] - This compares to year-ago revenues of $162 13 million [2] - The company has not been able to beat consensus revenue estimates over the last four quarters [2] Stock Performance - Stratasys shares have lost about 41 3% since the beginning of the year, compared to the S&P 500's gain of 25 5% [3] - The stock's immediate price movement will depend on management's commentary on the earnings call [3] Earnings Outlook - The current consensus EPS estimate is $0 10 on $145 14 million in revenues for the coming quarter [7] - For the current fiscal year, the consensus EPS estimate is breakeven on $571 68 million in revenues [7] - Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions [5] Industry Outlook - The Zacks Industry Rank for Computer - Peripheral Equipment is currently in the bottom 39% of the 250 plus Zacks industries [8] - The top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1 [8] Peer Performance - Dragonfly Energy Holdings Corp (DFLI) is expected to post a quarterly loss of $0 18 per share, representing a year-over-year change of -5 9% [9] - The company's revenues are expected to be $14 12 million, down 11 1% from the year-ago quarter [10] - The consensus EPS estimate for the quarter has remained unchanged over the last 30 days [9]

Stock Performance - Stratasys shares ended the last trading session 9 9% higher at $7 70, with a higher-than-average trading volume [1] - The stock had previously experienced a 13 9% loss over the past four weeks [1] - Immersion (IMMR), another stock in the same industry, closed the last trading session 2% higher at $8 83, but has returned -3 2% over the past month [3] Financial Expectations - Stratasys is expected to post a quarterly loss of $0 02 per share, representing a year-over-year change of -150% [2] - Revenues for Stratasys are expected to be $144 45 million, down 10 9% from the year-ago quarter [2] - Immersion's consensus EPS estimate for the upcoming report has remained unchanged at $0 15, representing a year-over-year change of +87 5% [4] Industry and Company Factors - Stratasys shares are benefiting from increased demand for 3D printed equipment, strategic partnerships, and expansion of product offerings [1] - Organizational restructuring and cost-minimizing strategies are also contributing to the positive performance of Stratasys stock [1] - Stratasys belongs to the Zacks Computer - Peripheral Equipment industry, and both Stratasys and Immersion currently carry a Zacks Rank of 3 (Hold) [3][4] Earnings Estimate Trends - The consensus EPS estimate for Stratasys has remained unchanged over the last 30 days [3] - Empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements [2] - The stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions [3]

Performance and Market Comparison - Stratasys (SSYS) shares have plunged 47.7% year to date, underperforming the Zacks Computer and Technology Sector (up 19.4%) and the Zacks Computer-Peripheral Equipment Industry (down 27.4%) [1] - SSYS has lagged behind peers like Mercury Systems (MRCY, up 0.7%), Immersion (IMMR, up 25.6%), and TransAct Technologies (TACT, down 38%) [1] Financial Results - Total revenues for the first half of 2024 declined 8.8% year over year to $282 million [1] - Product revenues were $192 million (down 8.2%), and service revenues were $89 million (down 9.8%) [1] - The Zacks Consensus Estimate for third-quarter 2024 revenues is $152.6 million, indicating a year-over-year decline of 5.9% [3] - The Zacks Consensus Estimate for 2024 revenues is $570 million, indicating a year-over-year decline of 9.18% [3] Earnings Outlook - The Zacks Consensus Estimate for third-quarter 2024 earnings is 2 cents, down 71.4% over the past 30 days [2] - The consensus mark for full-year 2024 earnings is 5 cents per share, down 64.3% over the past 30 days [2] Challenges and Risks - High interest rates, macroeconomic uncertainties, and reduced capital equipment spending have negatively impacted Stratasys' results [1] - Delayed purchases and longer sales cycles are expected to continue affecting second-half 2024 results [2] Growth Opportunities - The global 3D printing market is estimated to grow from $17.5 billion in 2024 to $37.4 billion by 2029, increasing by 16.4% annually [4] - Stratasys has introduced newer 3D printing technology and partnered with AM Craft to maximize additive manufacturing benefits [4] - The company recently enrolled a patient in a clinical study to analyze the efficacy of 3D-printed models for orthopedic oncology [4] Strategic Initiatives - Stratasys plans to reduce its workforce by 15% to mitigate macroeconomic volatility [5] - The company aims to achieve an EBITDA margin of 8% at current revenue levels by the first quarter of 2025 [5] Valuation and Ranking - Stratasys currently has a Zacks Rank 4 (Sell), suggesting investors should avoid the stock [6] - The Value Score of D indicates a stretched valuation [6]

Financial Performance - Stratasys reported a loss of 4 cents per share in Q2 2024, in line with the Zacks Consensus Estimate, compared to non-GAAP earnings of 4 cents per share in the year-ago quarter [1] - Quarterly revenues declined 13.6% YoY to $138 million, missing the consensus mark by 6.78%, partially due to divestitures and unfavorable foreign currency exchange rates [1] - Non-GAAP gross profit fell 9.8% YoY to $67.7 million, while the non-GAAP gross margin expanded 50 bps to 49% [2] - Non-GAAP operating expenses decreased 2.2% YoY to $70.9 million, resulting in a non-GAAP operating loss of $3.2 million, compared to a profit of $5 million in the year-ago quarter [2] - Adjusted EBITDA plunged 78.3% YoY to $2.3 million [2] Segment Performance - Product revenues declined 14.2% YoY to $93.6 million, with System revenues plunging 40% YoY to $29 million, while Consumables revenues increased 6.3% YoY to $64.6 million [2] - Services revenues declined 12.2% YoY to $44.4 million, with Customer Support revenues advancing 3.8% YoY to $30.5 million [2] Strategic Developments - Stratasys solidified a partnership with AM Craft to support additive manufacturing of EASA-certified aircraft sustainment parts, opening new opportunities in the aviation sector [3] - The company launched new products, including SAF High-Def printing capabilities, H350 version 1.5, and SAF Polypropylene material, expanding manufacturing applications and use cases [3] - Stratasys software offerings, including GrabCAD Print Pro and GrabCAD Streamline Pro, showed strong demand, with Print Pro expanding to PolyJet users and Streamline Pro gaining traction [3] Balance Sheet & Cash Flow - Stratasys ended Q2 with cash and short-term deposits of $150.9 million, down from $161.1 million at the end of the previous quarter [4] - The company reported a negative operating cash flow of $2.4 million, a significant decline from the positive operating cash flow of $7.3 million in the previous quarter [4] 2024 Outlook - Management lowered 2024 revenue projections to $570-$580 million, down from the previous forecast of $630-$645 million [5][6] - Non-GAAP earnings per share are now forecasted at 1-5 cents, compared to the previous range of 12-19 cents [5][6] - Gross margins are expected to be between 48.7% and 49%, down from the previous range of 49%-49.5% [5][6] - Non-GAAP operating margin is projected at 0.5%-1%, compared to the previous range of 2.5%-3.5% [5][6] - Operating expenses are estimated at $276-$278 million, down from the previous range of $292-$297 million [5][6] - Adjusted EBITDA is projected at $24-$27 million, down from the previous range of $40-$45 million [5][6] Stock Performance - Stratasys' shares have plunged 51.5% year-to-date, underperforming the Zacks Computer & Technology sector's rise of 20.3% [6]

Stratasys Ltd. SSYS reported worse-than-expected second-quarter sales and cut its FY24 guidance on Thursday.Stratasys reported fiscal second-quarter 2024 revenue of $138.04million, missing the analyst consensus estimate of $146.34 million. Adjusted EPS loss of 4 cents beat the analyst consensus estimate of 5 cent loss.The company shared plans to downsize its workforce by 15% by 2024 end to save $40 million in annual cost beginning in the first quarter of 2025, along with annualized EBITDA margins of 8%.Stra ...

Stratasys stock is 3D printing nothing but losses these days.Stratasys (SSYS -14.71%) stock fell 14.9% through 12:05 p.m. on mixed earnings on Thursday.Wall Street analysts had forecast the 3D printing company would lose $0.05 per share in the second quarter, and the good news is that Stratasys beat that estimate -- losing "only" $0.04. The bad news is that Stratasys fell well short of Street forecasts for $146.3 million in Q2 sales, reporting only $138 million. Stratasys' Q2 earningsThis news gets worse. T ...

STRATASYS LTD. Exhibit 99.1 CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2024 (UNAUDITED) 1 STRATASYS LTD. CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS (Unaudited) INDEX TO CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2024 (UNAUDITED) | Item | Page | | --- | --- | | Consolidated Balance Sheets | 3 | | Consolidated Statements of Operations and Comprehensive Loss | 4 | | Consolidated Statements of Chan ...

Financial Data and Key Metrics Changes - Consolidated revenue for Q2 2024 was $138 million, down 13.6% compared to Q2 2023 [28] - Product revenue decreased by 14.2% to $93.6 million from $109.1 million year-over-year [28] - System revenue fell by 40% to $29 million compared to $48.3 million in the same period last year [28] - Consumables revenue grew by 6.3% to $64.6 million, indicating strong utilization of existing systems [29] - GAAP gross margin improved to 43.8% from 41.5% year-over-year, while non-GAAP gross margin increased to 49% from 48.5% [30] - GAAP net loss for the quarter was $25.7 million, or $0.36 per diluted share, compared to a net loss of $38.6 million, or $0.56 per diluted share in the same period last year [32] Business Line Data and Key Metrics Changes - Consumables revenue growth reflects strong utilization rates of existing systems, primarily from FDM technologies [8][29] - Service revenue, including Stratasys Direct, decreased by 12.2% to $44.4 million compared to $50.7 million in the same period last year [29] - Customer support revenue within service revenue was down 3.8% year-over-year [29] Market Data and Key Metrics Changes - The company noted ongoing softness in hardware sales due to high interest rates and macroeconomic uncertainty affecting capital equipment spending [8] - The utilization of consumables is expected to remain resilient despite hardware sales weakness, as the installed base continues to be well utilized [29] Company Strategy and Development Direction - The company is committed to innovation in materials and workflow to address adoption opportunities, focusing on key end-use applications [9] - A strategic review led to restructuring actions expected to produce approximately $40 million in annual cost savings starting Q1 2025 [22] - The company aims to strengthen market penetration by helping customers overcome barriers to additive manufacturing adoption [24] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about hardware sales growth in the second half of 2024 due to an improved pipeline and expected higher government sales [33] - The ongoing macroeconomic challenges are anticipated to persist, causing delays in purchases and longer sales cycles [33] - Management highlighted strong utilization rates and engagement levels despite current purchase constraints, indicating potential for future growth [26] Other Important Information - The company plans to relocate its US headquarters to enhance collaboration and efficiency [18] - New product introductions include the H350 version 1.5 and the J5 Digital Anatomy 3D Printer, aimed at expanding manufacturing applications [12][13] Q&A Session Summary Question: Insights from the strategic alternatives process - Management learned the importance of investing in strategies and focusing on unique assets to create shareholder value [39] Question: Quantifying pent-up demand - Management refrained from quantifying demand but noted increased utilization rates and a shift towards manufacturing applications [40][41] Question: Gross margin outlook for the second half - Management indicated that gross margin expectations are influenced by a mix of hardware, consumables, and services, maintaining a solid outlook [44][45] Question: Impact of workforce reduction on revenue growth - Management emphasized that the restructuring is strategy-led and focused on proven use cases to maintain growth while ensuring profitability [56][63] Question: Utilization of machines sold during COVID - Management noted that while tracking utilization is challenging, material sales growth indicates a shift towards manufacturing and tooling applications [70] Question: Revenue expectations and restructuring savings - Management clarified that the expected 8% EBITDA margin is based on mid-range annual guidance, with savings from restructuring to be realized over time [74]

Company Performance - Stratasys reported a quarterly loss of $0.04 per share, matching the Zacks Consensus Estimate, compared to earnings of $0.04 per share a year ago [1] - The company posted revenues of $138.04 million for the quarter ended June 2024, missing the Zacks Consensus Estimate by 6.78%, and down from $159.75 million year-over-year [1] - Over the last four quarters, Stratasys has surpassed consensus EPS estimates just once and topped consensus revenue estimates only once [1] Stock Movement and Outlook - Stratasys shares have declined approximately 46.2% since the beginning of the year, contrasting with the S&P 500's gain of 17.2% [2] - The sustainability of the stock's price movement will largely depend on management's commentary during the earnings call [2][3] Earnings Estimates and Industry Context - The current consensus EPS estimate for the upcoming quarter is $0.07 on revenues of $165.07 million, and for the current fiscal year, it is $0.14 on revenues of $631.49 million [4] - The Zacks Industry Rank for Computer - Peripheral Equipment is in the top 4% of over 250 Zacks industries, indicating a favorable outlook for the sector [5]