Company Performance - Stratasys Ltd reported Q3 numbers showing decent improvement in efficiency, but top-line growth remains a concern [1] Analyst Perspective - The analyst focuses on long-term horizon investing with a 5-10 year outlook and prefers a portfolio mix of growth, value, and dividend-paying stocks, with a tendency to lean towards value investments [1] - The analyst occasionally engages in selling options as part of their investment strategy [1]

Earnings Performance - The company reported Q3 2024 earnings of 1 cent per share, beating the Zacks Consensus Estimate of a loss of 2 cents per share [1] - Non-GAAP earnings were 4 cents per share in the year-ago quarter [1] - The company has beaten the Zacks Consensus Estimate in three of the trailing four quarters with an average surprise of 37.5% [1] Revenue Performance - Quarterly revenues fell 13.6% year over year to $140 million, missing the consensus mark by 3.08% [2] - Product revenues declined 16.9% year over year to $94.1 million, with System revenues plunging 38.4% to $31.7 million and Consumables revenues increasing 1% to $62.4 million [3] - Services revenues declined 6.1% year over year to $45.9 million, with Customer Support revenues advancing 1.3% to $31 million [3] Profitability Metrics - Non-GAAP gross profit fell 8.8% year over year to $69.5 million, while the non-GAAP gross margin expanded 130 bps to 49.6% [4] - Non-GAAP operating expenses dropped 6.1% year over year to $69.6 million [4] - Non-GAAP operating loss was $0.1 million, compared to a profit of $4.1 million in the year-ago quarter, with the margin contracting 260 bps to negative 0.1% [4] - Adjusted EBITDA plunged 47.9% to $5.1 million [4] Product and Market Developments - The company saw significant growth driven by the launch of new products, including Origin 2, Stratasys Neo Build Processor for Investment Casting, and TechStyle Fabric Alignment Station, which expanded manufacturing applications and use cases [5] - Offerings like F3300 and TrueDent showed strong demand, with F3300 driving demand for the flagship F3300 industrial platform and delivering high-quality thermoplastic parts [6] Financial Position - The company exited Q3 with cash and short-term deposits of $143.95 million, down from $150.9 million at the end of the previous quarter [7] - Operating cash outflow increased significantly to $4.5 million, compared to $2.4 million in the previous quarter [7] 2024 Outlook - Management expects 2024 revenues to be between $570 million and $580 million, with non-GAAP earnings per share forecasted in the range of 3-7 cents [8] - Gross margins are anticipated to be between 49% and 49.2%, and the non-GAAP operating margin is expected to be in the range of 0.6-1.3% [8] - Operating expenses are estimated to be between $276 million and $278 million, with adjusted EBITDA anticipated in the range of $25-$28 million [9] - The company's 2024 forecast for revenues and operating expenses remains unchanged [10] Stock Performance and Sector Comparison - The company's shares have lost 29.3% year to date, underperforming the Zacks Computer & Technology sector's growth of 30% [2] - In comparison, Arista Networks (ANET) has gained 68.1% year to date, Accenture (ACN) has gained 5.5%, and Adobe (ADBE) has declined 10.7% [12]

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

Financial Data and Key Metrics - Consolidated revenue for Q3 2024 was $140 million, down from $162.1 million in Q3 2023, primarily due to softness in capital equipment spending [25] - Product revenue was $94.1 million, compared to $113.2 million in the same period last year, with system revenue at $31.7 million, down from $51.5 million in Q3 2023 [26] - Consumables revenue grew 1% to $62.4 million, marking the eighth consecutive quarter of year-over-year growth [27] - Service revenue, including Stratasys Direct, was $45.9 million, down from $48.9 million in Q3 2023 [28] - GAAP gross margin expanded to 44.8% in Q3 2024, up from 40.5% in Q3 2023, while non-GAAP gross margin grew to 49.6%, the highest since Q4 2019 [29] - GAAP operating loss was $25.5 million, an improvement from a loss of $42.8 million in Q3 2023, while non-GAAP operating loss was $0.1 million, compared to operating income of $4.1 million in Q3 2023 [31] - GAAP net loss for Q3 2024 was $26.6 million, or $0.37 per diluted share, compared to a net loss of $47.3 million, or $0.68 per diluted share, in Q3 2023 [32] - Adjusted EBITDA was $5.1 million, down from $9.8 million in Q3 2023 [32] - Cash utilization improved, with $4.5 million used in operations during Q3 2024, compared to $12.7 million in Q3 2023 [33] Business Line Performance - The F3300 industrial platform generated significant interest and orders, with shipments to key customers in automotive, aerospace, and defense sectors [16] - The Origin 2 printer and Origin Cure post-processing system were launched, targeting industries like connectors where manufacturing costs are high [17] - The Neo Build Processor for investment casting was introduced, offering up to 50% faster file processing and enhanced print speeds [18] - TrueDent solution in dental continued to gain traction, with plans to expand into EMEA and APAC regions [89][90] Market Performance - The company maintained a strong presence in key industries such as automotive, aerospace, defense, medical devices, and dental [9][10] - The F3300 platform was showcased at the International Manufacturing Technology Show, generating interest from leading companies in automotive, aerospace, and defense [16] - The company is focusing on high-growth target industries that benefit from megatrends like supply chain risks, onshoring, new mobility, and sustainability [15] Strategic Direction and Industry Competition - The company is focusing on targeted innovation across materials, knowledge, and workflow solutions in high-growth industries [15] - A $50 million share repurchase plan was approved and executed, reflecting the company's commitment to maximizing shareholder value [19] - The company implemented a restructuring plan, including a 15% workforce reduction, to align operational costs with current market dynamics and achieve $40 million in annual cost savings [20][21] - The company is positioning itself to benefit from megatrends like onshoring, localization of manufacturing, and digitalization of manufacturing [58][71] Management Commentary on Operating Environment and Future Outlook - The company expects full-year 2024 revenue to range between $570 million to $580 million, with improved gross margins and profitability [35] - The company anticipates achieving an 8% EBITDA margin in 2025, even without revenue growth, and potentially reaching a 10% EBITDA margin with moderate revenue growth [36] - Management highlighted the resilience of the company's operating model and the ability to deliver improved profitability despite challenging market conditions [24][38] Other Important Information - The company launched new products like the F3300, Origin 2, and Neo Build Processor, which are expected to drive future growth [16][17][18] - The company is focusing on expanding its software offerings, which are expected to drive high-margin revenues in the coming years [11] - The company is committed to delivering increased profitability and cash flow in 2025, with a focus on maintaining a strong balance sheet [21][38] Q&A Session Summary Question: Implied Q4 revenue guidance and EPS expectations [41] - The company clarified that Q4 EPS is expected to be in the range of $0.08 to $0.12, driven by cost-saving initiatives [42][44] Question: Year-over-year improvement in Q4 and outlook for Q1 [45] - The company noted that Q4 is typically strong due to seasonality, but it is too early to provide guidance for Q1 2025 [46] Question: Concerns about consumables growth [48] - Management emphasized the stability of the recurring revenue model and the growing installed base, which supports continued consumables growth [49][50] Question: Workforce reduction and restructuring progress [52] - The company confirmed that the restructuring plan is ahead of schedule, with significant savings expected in Q4 [53][87] Question: Impact of macro factors on demand [56] - Management highlighted that the current macro environment, including high capital costs, is delaying customer investment in new technologies, but pent-up demand remains strong [57][58] Question: Gross margin guidance for Q4 [61] - The company expects Q4 gross margin to be slightly higher than Q3, driven by a mix of hardware and consumables sales [62][63] Question: Share repurchase program [64] - The company has started buying back shares in Q4 and will provide updates in the Q4 results [65] Question: F3300 rollout progress [68] - The F3300 platform is performing well, with shipments to key customers like Toyota and BAE Systems, and a strong pipeline of orders [69] Question: Impact of onshoring and US manufacturing focus [70] - The company sees onshoring and localized manufacturing as tailwinds, particularly in industries like aerospace and defense [71] Question: Demand trends for new product lines [74] - Demand for new products like Origin 2 and Neo remains strong, but sales cycles are longer due to the macro environment [75][77] Question: Additional cost-saving opportunities [79] - The company is focused on completing non-headcount-related cost-saving initiatives, with significant savings expected in Q4 [80][81] Question: TrueDent milestones [85] - The company plans to expand TrueDent into EMEA and APAC regions and increase penetration in clinics, with key milestones expected in 2025 [89][90] Question: Early signs of recovery in end markets [94] - Management noted that government and defense, aerospace, and automotive tooling are showing early signs of recovery, while other verticals remain cautious [95] Question: Revenue contribution from GrabCAD Print Pro [96] - The company is seeing significant growth in software revenue, with high gross margins and strong customer attachment rates [97][99]

| --- | --- | --- | --- | |--------------------------|-------|-------|-------| | | | | | | | | | | | | | | | | | | | | | 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 ...