Q3 2023 Results Speakers Dr. Yoav Zeif, CEO Eitan Zamir, CFO Yonah Lloyd, CCO & VP IR Conference Call and Webcast Details ...

Financial Performance - Total assets decreased from $1,259.79 million in December 2022 to $1,181.765 million in September 2023[4][5] - Cash and cash equivalents decreased from $150.47 million in December 2022 to $104.563 million in September 2023[4] - Revenues for the three months ended September 30, 2023, were $162.133 million, compared to $162.192 million in the same period in 2022[8] - Net loss for the three months ended September 30, 2023, was $47.279 million, compared to a net income of $18.749 million in the same period in 2022[8] - Gross profit for the three months ended September 30, 2023, was $65.649 million, down from $70.749 million in the same period in 2022[8] - Operating loss for the three months ended September 30, 2023, was $42.798 million, compared to an operating loss of $15.626 million in the same period in 2022[8] - Net loss per share for the three months ended September 30, 2023, was $0.68, compared to earnings per share of $0.28 in the same period in 2022[8] - Comprehensive loss for the three months ended September 30, 2023, was $47.566 million, compared to a comprehensive income of $17.88 million in the same period in 2022[8] - Net loss for the nine months ended September 30, 2023, was $108.118 million, compared to $26.584 million for the same period in 2022[13] - Comprehensive loss for the nine months ended September 30, 2023, was $47.566 million, compared to a comprehensive income of $17.880 million in 2022[9][11] - Net loss per share for Q3 2023 was $(0.68), compared to $0.28 in Q3 2022, and for the nine months ended September 30, 2023, it was $(1.58), compared to $(0.40) in the same period of 2022[53] Expenses and Costs - Research and development expenses for the three months ended September 30, 2023, were $23.567 million, slightly up from $23.145 million in the same period in 2022[8] - Selling, general, and administrative expenses for the three months ended September 30, 2023, were $84.88 million, up from $63.23 million in the same period in 2022[8] - Stock-based compensation for the nine months ended September 30, 2023, was $23.744 million, slightly lower than $24.755 million in 2022[13] - Stock-based compensation expenses for Q3 2023 were $7.5 million, compared to $7.4 million in Q3 2022, and for the nine months ended September 30, 2023, they were $23.7 million, compared to $24.8 million in the same period of 2022[66] - The Company recorded restructuring charges of $18.4 million during the nine months ended September 30, 2023, including $12.0 million under Cost of sales[31] Cash Flows and Liquidity - Cash flows from operating activities resulted in a net cash used of $53.912 million for the nine months ended September 30, 2023, compared to $57.289 million in 2022[13] - Cash flows from investing activities provided $10.845 million in 2023, a significant improvement from a net cash used of $23.987 million in 2022[13] - Cash flows from financing activities used $1.084 million in 2023, slightly lower than $1.407 million in 2022[13] - Cash, cash equivalents, and restricted cash at the end of September 30, 2023, were $104.832 million, down from $150.823 million at the end of September 30, 2022[13] Equity and Investments - Total equity as of September 30, 2023, was $883.143 million, down from $948.726 million as of September 30, 2022[9][11] - Accumulated deficit as of September 30, 2023, was $2.18497 billion, compared to $2.074462 billion as of September 30, 2022[9][11] - Stock-based compensation plans issued 1,017 shares in 2023, compared to 731 shares in 2022[9][11] - Stratasys completed the merger of MakerBot with Ultimaker, recording a net gain of $39.1 million from the deconsolidation of MakerBot[19][20] - The Company recognized an equity method investment in Ultimaker totaling $105.4 million, representing a 46.5% share in the new entity[20] - As of September 30, 2023, the equity investment in Ultimaker amounted to $88.4 million, down from $100.2 million at December 31, 2022[21] - Stratasys acquired Covestro AG's additive manufacturing materials business for a total consideration of $59.7 million, including $53.8 million in cash payments and $5.2 million in ordinary shares[23][24] - The Covestro acquisition included intangible assets valued at $21.5 million and goodwill of $20.2 million[27] - Goodwill as of September 30, 2023 was $90.2 million, an increase from $65.0 million as of January 1, 2023, primarily due to acquisitions[48] Revenue Breakdown - Total revenues for the three months ended September 30, 2023 were $162.1 million, compared to $162.2 million in the same period in 2022[39] - Total revenues for the nine months ended September 30, 2023 were $471.3 million, compared to $492.2 million in the same period in 2022[39] - Americas region revenues for the three months ended September 30, 2023 were $101.8 million, a decrease from $107.5 million in the same period in 2022[39] - EMEA region revenues for the three months ended September 30, 2023 were $40.6 million, an increase from $31.5 million in the same period in 2022[39] - Asia Pacific region revenues for the three months ended September 30, 2023 were $19.7 million, a decrease from $23.3 million in the same period in 2022[39] - Revenues recognized at a point in time for the three months ended September 30, 2023 were $126.6 million, compared to $125.7 million in the same period in 2022[40] - Revenues recognized over time for the three months ended September 30, 2023 were $35.6 million, compared to $36.5 million in the same period in 2022[40] - Deferred revenue as of September 30, 2023 was $80.3 million, compared to $75.4 million as of December 31, 2022[42] - Remaining Performance Obligations (RPO) as of September 30, 2023 amounted to $93.5 million, with $61.8 million expected to be recognized in the next 12 months[43] Legal and Strategic Matters - Stratasys terminated its merger agreement with Desktop Metal, incurring a $10.0 million termination fee[33] - Nano Dimension launched a hostile tender offer for Stratasys shares, ultimately offering $25.00 per share, but the offer expired without completion[34] - 3D Systems made multiple merger proposals to Stratasys, with the final offer being $7.00 in cash and 1.6387 newly issued shares of 3D Systems per Stratasys share[36] - Stratasys initiated a strategic alternatives process following the termination of the Desktop Metal merger agreement[37] - The Rights Plan expiration date was extended through December 31, 2023, to protect shareholder interests and prevent unauthorized control accumulation[72] - Nano Dimension filed a lawsuit against the company on April 25, 2023, challenging the legality of the Rights Plan, which remains unresolved as of November 15, 2023[73][75] Stock-Based Compensation and Equity - As of September 30, 2023, the company had 1,358,721 stock options outstanding with a weighted average exercise price of $21.03[67] - Unrecognized compensation cost related to unvested stock options was $2.5 million as of September 30, 2023, expected to be recognized over 2.4 years[67] - The unrecognized compensation cost related to unvested RSUs and PSUs as of September 30, 2023, is $51.26 million, expected to be recognized over a weighted-average period of 2.52 years[69] - The weighted average grant date fair value of RSUs and PSUs as of September 30, 2023, is $18.71[69] - The total accumulated other comprehensive loss as of September 30, 2023, is $12.958 million, compared to $14.223 million as of September 30, 2022[70] Foreign Exchange and Hedging - Foreign exchange forward contracts not designated as hedging instruments had a notional amount of $57.2 million as of September 30, 2023, with gains of $1.3 million and $2.6 million recognized for the three and nine months ended September 30, 2023, respectively[61] - The company had $51.6 million in foreign exchange forward contracts designated as cash flow hedges for payroll and operating expenses denominated in NIS as of September 30, 2023[62] - Foreign exchange forward contracts designated as cash flow hedges for revenue included $20.0 million Euro to be converted into U.S. dollars as of September 30, 2023[63] Tax and Geographic Impact - The company's effective tax rate as of September 30, 2023, was impacted by geographic earnings mix, valuation allowance movements, and uncertain tax positions[56] Operational and Regional Impact - The company's manufacturing facility and global headquarters in Israel remain largely unaffected by the ongoing war as of the financial statement date[79]

Stratasys Ltd. (NASDAQ:SSYS) Q2 2023 Earnings Conference Call August 9, 2023 8:30 AM ET Company Participants Yonah Lloyd - VP, IR Yoav Zeif - CEO Eitan Zamir - CFO Conference Call Participants Greg Palm - Craig-Hallum Shannon Cross - Credit Suisse Brian Drab - William Blair Troy Jensen - Lake Street Capital Markets Operator Greetings and welcome to the Stratasys Second Quarter 2023 Earnings Call. At this time, all participants are in a listen-only mode. A brief question-and-answer session will follow the fo ...

Q2 2023 Results Speakers Dr. Yoav Zeif, CEO Eitan Zamir, CFO Yonah Lloyd, CCO & VP IR Conference Call and Webcast ...

Exhibit 99.1 STRATASYS LTD. CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2023 (UNAUDITED) INDEX TO CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2023 (UNAUDITED) | --- | --- | |--------------------------------------------------------------------------|-------| | Item | Page | | Consolidated Balance Sheets | 2 | | Consolidated Statements of Operations and Comprehensive Loss | 3 | | Consolidated Statements of ...

Stratasys Ltd. (NASDAQ:SSYS) Q1 2023 Earnings Conference Call May 16, 2023 8:30 AM ET Company Participants Yoav Zeif - Chief Executive Officer Eitan Zamir - Chief Financial Officer Yonah Lloyd - Chief Communications Officer, Vice President, Investor Relations Conference Call Participants Shannon Cross - Credit Suisse Troy Jensen - Lake Street Capital Danny Eggerichs - Craig Hallum Capital Ananda Baruah - Loop Capital Blake Heating - William Blair Jim Ricchiuti - Needham & Co. Operator Greetings and welcome ...

Exhibit 99.1 STRATASYS LTD. CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS FOR THE THREE MONTHS ENDED MARCH 31, 2023 (UNAUDITED) INDEX TO CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS FOR THE THREE MONTHS ENDED MARCH 31, 2023 (UNAUDITED) | --- | --- | |--------------------------------------------------------------------------|-------| | Item | Page | | Consolidated Balance Sheets | 2 | | Consolidated Statements of Operations and Comprehensive Loss | 3 | | Consolidated Statements of Changes in Equ ...

Financial Data and Key Metrics Changes - For Q4 2022, consolidated revenue was $159.3 million, down 4.6% year-over-year, and down 2.8% on a constant currency basis. Adjusted for the MakerBot divestment, revenue grew 1.7% at constant currency [23] - Full-year 2022 consolidated revenue increased by 7.3%, 9.6% on a constant currency basis, and 11.4% at constant currency after excluding MakerBot [25] - GAAP gross margin for Q4 was 43.1%, slightly down from 43.7% in the same period last year. Non-GAAP gross margin was 48.4%, compared to 48.7% year-over-year [26] - GAAP net loss for Q4 was $2.4 million or $0.04 per diluted share, an improvement from a net loss of $4.8 million or $0.07 per diluted share in the same period last year [28] Business Line Data and Key Metrics Changes - Product revenue in Q4 fell by 5.8% to $111.2 million, but grew 1.6% excluding divestitures on a constant currency basis. Systems revenue was down 11.1% to $54.9 million, while consumables revenue was flat at $56.3 million [23][24] - For the full year, product revenue grew by 8.3% compared to 2021, with system revenue increasing by 12.6% [25] - Service revenue for Q4 was $48.1 million, down 1.9% year-over-year, but customer support revenue grew by 1.9% [24] Market Data and Key Metrics Changes - The OEM business grew 3.2% in Q4 2022 on a constant currency basis compared to Q4 2021 [22] - Recurring revenue increased significantly in 2022, with consumables up 7.7% and customer support up 11% on a constant currency basis [11] Company Strategy and Development Direction - The company aims to be the leading innovator in polymer-based additive manufacturing solutions, focusing on both organic and acquired technology offerings [7] - The acquisition of Riven and Axial3D positions the company for growth in AI-driven 3D printing solutions, particularly in healthcare [11] - The company plans to unlock new sales opportunities in materials through the Covestro AM acquisition and has formed a partnership with Ultimaker [12][13] Management's Comments on Operating Environment and Future Outlook - Management noted ongoing inflationary pressures and potential recession concerns impacting customer capital spending, leading to longer sales cycles [10] - The company expects 2023 revenue to range between $620 million to $670 million, with a stronger second half due to new product launches [32][33] - Gross margins are expected to improve modestly in 2023, with a target range of 48% to 49% [33] Other Important Information - The company ended Q4 with $327.8 million in cash and cash equivalents, down from $348.7 million at the end of Q3 2022 [31] - The company anticipates a GAAP net loss of $78 million to $57 million for 2023, with non-GAAP net income expected to be between $9 million to $17 million [35] Q&A Session Summary Question: What is the current market situation and any specific strengths or weaknesses? - Management noted a microeconomic slowdown across the board but highlighted the company's diversification across geographies and verticals, which helps mitigate risks [40] Question: How confident is the company in the second half of the year? - Management expressed confidence due to new product launches and a strong installed base, despite macroeconomic challenges [43] Question: Can you elaborate on the Ricoh partnership? - The partnership aims to democratize access to 3D printing in medical applications, leveraging AI to transform medical files into 3D printable formats [47] Question: What is the outlook for gross margins? - Management indicated a path towards improving gross margins, with expectations to reach 50% as operational efficiencies improve and new products are introduced [49] Question: How does the company view long-term revenue growth? - Management emphasized the transition from prototyping to manufacturing, which is expected to drive significant growth in the coming years [53]

Tax Benefits and Grants - The company's average effective tax rate for Israeli operations under tax benefit programs is estimated to be between 7.5% and 14%, compared to the standard Israeli corporate tax rate of 23%[133] - The company has received approximately $9 million in R&D grants from the Israeli Innovation Authority since 2007, and $1.8 million from European authorities[135] - Royalties of 3% to 5% are required on revenues from products developed under IIA grants, up to the total grant amount received[136] - Transfer of IIA-funded know-how outside Israel may require a redemption fee of up to 600% of the grant amount plus interest[138] - Manufacturing products developed with IIA grants outside Israel may increase total liability to IIA to between 120% and 300% of the grants received[140] - The corporate tax rate in Israel is 23% since 2018, but can be lower for companies with specific enterprise statuses[294] - The company qualifies as an "Industrial Company" under Israeli law, entitling it to tax benefits like accelerated depreciation[295] - The company has received tax benefits under the Investment Law, reducing its effective tax rate below the statutory 23%[304] - Approved Enterprise programs can reduce corporate tax rates to between 10% and 25%, depending on foreign investment levels[298] - Foreign Investors' Companies (FICs) with over 25% foreign investment can extend tax benefits and reduce rates further[299] - Dividends from Approved Enterprise income are subject to a 15% withholding tax, which can be reduced under tax treaties[302] - The company has received final approval for its Approved Enterprise investment programs, ensuring continued tax benefits[304] - The 2005 Amendment introduced Beneficiary Enterprise status, allowing companies to claim tax benefits directly without prior approval[306] - Beneficiary Enterprise status requires at least 25% of business income from exports to specific markets[307] - The company waived the Approved / Beneficiary Enterprise regime starting from tax year 2021[312] - In 2021, the company released approximately $44.8 million out of its Exempt Profits and paid reduced tax of approximately $2.9 million[321] - As of December 31, 2022, the company had accumulated tax-exempt income of approximately $160.6 million, which would incur a tax liability of approximately $16.1 million if distributed[322] - The company is considering its qualification for the 2017 amendment and the potential to be classified as a Preferred Technology Enterprise or Special Preferred Technology Enterprise[320] Acquisitions and Business Development - The company has made several acquisitions including Origin (2020), RPS (2021), Xaar (2021), Riven (2022), and plans to acquire Covestro AG's additive manufacturing materials business in Q2 2023[148] - The company acquired Origin Inc. in December 2020, which introduced the P3 Programmable PhotoPolymerization technology, becoming a key growth driver[160] - The company acquired RPS in February 2021, expanding its polymer suite of solutions with the Neo® line of 3D printers[167] - The company acquired the remaining 55% of Xaar in November 2021, accelerating growth in production-scale 3D printing with the introduction of the Stratasys H350™ 3D printer[168] - The company signed a definitive agreement in August 2022 to acquire Covestro's AM materials business, expected to close in Q2 2023[169] - The company disposed of its subsidiary MakerBot in September 2022, retaining a 46.5% equity interest in the combined entity with UltiMarker[160] - The company acquired Riven in October 2022, integrating its cloud-based software into the GrabCAD additive manufacturing platform[160] - The company's acquisition strategy focuses on expanding its materials offerings, production capabilities, and market reach in the 3D printing industry[160] Financial Performance and Capital Expenditures - The company's ordinary share price has fluctuated between $11.07 and $54.37 from 2019 through early 2023[145] - The company does not anticipate paying cash dividends in the foreseeable future, retaining funds for business development[150] - The company's capital expenditures in 2022, 2021, and 2020 were $19.8 million, $26.8 million, and $29.0 million, respectively, with $13.6 million, $25.0 million, and $26.9 million primarily related to property, plant, and equipment[162] - The company invested an aggregate of $119.5 million in its new facility in Israel and related equipment as of December 31, 2022[162] Technology and Innovation - The company holds approximately 1,700 granted and pending additive technology patents, supporting its leadership in polymer-based 3D printing[165] - The company offers five different 3D printing technology platforms, more than any other vendor in the industry, each optimized for specific industry applications[170] - The company's GrabCAD Additive Manufacturing Platform enables smart and connected software ecosystems for additive manufacturing at scale[173] - The company's 3D printing solutions reduce industrial energy use and save airlines approximately 14,000 gallons of fuel per year per plane for every pound eliminated[179] - The company holds approximately 1,700 patents and pending patents internationally, utilizing proprietary technologies like FDM, PolyJet, SAF, and stereolithography[187] - The company's PolyJet technology supports over 600,000 color and texture combinations, including the industry's clearest material, nearly as clear as glass[189] - The company's FDM technology is suitable for office environments due to the absence of hazardous emissions and minimal material waste[188] - The company's stereolithography technology, including the Neo line of systems acquired via RPS in February 2021, offers superior part quality, system reliability, and an open choice of resins, with the latest acquisition of Covestro Additive Manufacturing expected to close in Q2 2023, enhancing the offering with the Somos® materials portfolio[190] - The P3 resin-based 3D printing technology, acquired through the Origin acquisition, provides a best-in-class combination of detail, mechanical properties, and throughput for mass production parts, supported by a strong materials portfolio including aerospace-grade and biocompatible materials[191] - SAF (Selective Absorption Fusion) technology, developed via a joint venture with Xaar plc and acquired in 2021, delivers production-level throughput for end-use parts with competitive cost per part, part quality, and consistency, using materials like PA11 derived from sustainable castor oil[192] - The company offers the widest range of 3D printing consumable materials in the industry, including 61 FDM spool-based filament materials, 49 PolyJet cartridge-based resin materials, and 158 functional materials, yielding over 600,000 color variations[193] - The company's FDM-based systems enable highly precise printing of engineering and high-performance thermoplastic materials, suitable for a wide range of manufacturing applications with minimal post-production processing[195] - PolyJet inkjet-based systems are used in prototyping and manufacturing applications, particularly in healthcare and dental, offering voxel-level control, multi-material and color printing, high accuracy, and smooth finish[196] - The P3-based systems, added via the Origin acquisition, offer best-in-class detail, mechanical properties, and throughput for mass manufacturing production parts, expanding leadership in industries like dental, medical, and tooling[197] - The company's SAF-based systems, launched in late 2021, expand the total addressable market across commercial goods, automotive, consumer goods, and service bureaus, with dynamic and variable laser beam technology for build accuracy and feature detail[198] - The company's GrabCAD Community has over 13 million professional engineers, designers, manufacturers, and students, providing a resource for CAD models and facilitating communication and design sharing[205] - The company's growth strategy focuses on polymers, offering five best-in-class technologies for every step in the product lifecycle, with a goal to shift towards more manufacturing application solutions and invest in new applications and materials[206] - The J55 3D printer is priced at about one-third of the J8 Series printers, offering nearly 600,000 colors and multi-material capabilities[217] - The J5 DentaJet™ and J5 MediJet™ are industry-specific versions of the J55 3D printer, targeting dental and medical applications respectively[218] - The Stratasys J850 Digital Anatomy™ printer uses three new materials (GelMatrix™, TissueMatrix™, BoneMatrix™) to create over 100 unique digital materials for anatomical applications[219] - Stratasys' FDM printer portfolio has reached a milestone of 35,000 installed printers, with models like the F170, F370, F770, F190CR, and F370CR[220] - The F Series printers introduced in 2022, including the F190CR and F370CR, can print Nylon 10CF for manufacturing floor jigs and fixtures[221] - The Stratasys F900 3D printer includes an internal camera and GrabCAD Print software, streamlining workflow and job monitoring[223] - The Neo800 stereolithography printer features a build volume of 31.5 x 31.5 x 23.6 inches, with the Neo450s and 450e models catering to smaller build needs[224] - The H350 SAF technology-based 3D printer, shipped globally in 2022, is designed for industries like automotive and consumer goods, offering predictable cost per part[227] - Stratasys' GrabCAD Additive Manufacturing Platform processes 35 gigabytes of data streams daily, with over 42,200 application users and 19,000 3D printers connected as of February 2023[238] - The GrabCAD Community has over 13 million members and 1.7 million CAD files available for free download as of the end of 2022[242] Customer and Market Reach - The company has over 300,000 Stratasys parts already in use in the aerospace industry and supports multiple materials for biocompatible applications in healthcare[171] - The company's network includes over 200 channel partners, exclusive to its technologies, covering every region and major market[172] - The company signed a $20 million contract with the U.S. Navy in 2021 for systems, materials, support, and training across multiple global locations[172] - The company has over 2,000 employees worldwide and operates one of the largest additive manufacturing service bureaus in the United States[174] - The company's customer base includes prominent companies such as General Motors, BAE Systems, Boeing, Blue Origin, the U.S. Navy, and the Mayo Clinic, with no single customer accounting for more than 5% of sales in recent years[249] - The company's sales organization is divided into geographical regions: Americas, Europe and Middle East, North Asia, and South Asia, with sales and service centers in key locations worldwide[255] Research and Development - The company has an ongoing R&D program focused on developing new systems, materials, and software, with significant resources devoted to creating a universally compatible and user-friendly software system[266] - The company's R&D department is organized by scientific disciplines and product lines, aiming to standardize product platforms for faster and more cost-effective development[267] - Net R&D expenses were $92.9 million, $88.3 million, and $84.0 million for the years ended December 31, 2022, 2021, and 2020, respectively[268] - The company holds patents related to FDM systems, PolyJet technologies, 3D printing processes, and consumables, with expiration dates ranging from 2023 to 2039[269] - The company has a cross-license agreement with 3D Systems Corporation and a patent license agreement with Cornell University[270] Competitive Landscape - The company's principal competitors include 3D Systems Corporation, EOS GmbH, HP, Carbon, Inc., Formlabs, Markforged, Inc., and Desktop Metal[272] - The company's competitive strengths include material properties of printed objects, quality of printed objects, multiple production-grade modeling materials, and multi-color, multi-material 3D printing systems[273] Seasonality and Regulatory Compliance - The company experiences seasonality, with stronger demand in the fourth quarter and weaker demand in the first and third quarters[275] - The company is subject to medical device regulations, such as the U.S. FDA Code of Federal Regulations, following the launch of its first certified medical device with TrueDent resin[280] Sustainability and Corporate Responsibility - The company prioritizes four UN Sustainable Development Goals: responsible consumption and production, industry infrastructure and innovation, climate action, and quality education[281] - The company aims to improve the circular economy and reduce the carbon footprint of its products, including offering recycling options and naturally sourced printing materials[282] - The company has set an initial baseline for Scope 1 & 2 emissions and is working to improve its environmental impact, including installing solar panels at manufacturing sites[285] Corporate Governance and Structure - Total number of directors is 8, with 2 female and 6 male directors[292] - The company owns a 46.5% interest in Ultimaker, which includes the operations of its former subsidiary, MakerBot[324] - The company's Eden Prairie, Minnesota headquarters encompasses approximately 308,646 square feet, with 227,100 square feet owned by the company[326] - The company entered into a new lease of an additional 168,100 square feet for storage purposes in 2022, increasing shipping efficiency and reducing inventory management costs[326] - The company's Rehovot, Israel headquarters encompasses approximately 284,713 square feet, housing research and development facilities and certain marketing activities[326] - The company's corporate structure includes Stratasys Ltd. as the Israeli parent company and several wholly-owned subsidiaries, including Stratasys, Inc., Stratasys Direct, Inc., and Stratasys AP Limited[323] - The company's material tangible fixed assets include properties in Eden Prairie, Minnesota, Rehovot, Israel, and Kiryat Gat, Israel[327] - Americas headquarters in Eden Prairie, Minnesota covers 308,646 square feet[328] - Valencia, California facilities include 55,035 square feet for offices and warehouses[328] - Rehovot, Israel headquarters spans 284,713 square feet, with 92,400 square feet leased to a third party under a long-term lease[328] - Kiryat Gat, Israel facilities include 126,617 square feet for factories and warehouses[328] - Plymouth, Minnesota warehouse occupies 168,100 square feet[328] - Asia Pacific main office in Hong Kong covers 4,994 square feet[328] - Japan sales office spans 13,109 square feet[328] - China sales office covers 15,018 square feet[328] - Other facilities in Asia Pacific include 14,913 square feet of office space[328] - Makerbot's Brooklyn NY facility (36,950 square feet) was removed from the property list as of September 1st[328] Customer Support and Services - The company provides customer support through a global network of Stratasys-certified engineers, direct and indirect support engineers, and resellers, offering services in eight languages and local languages through resellers[243] - The company offers a range of post-warranty maintenance contracts with varying levels of support and pricing, ensuring products are designed for serviceability and incorporating field feedback into product development[245] - The company's 3D printing systems are sold with warranties ranging from 90 days to one year, with extended support programs available for maintenance services beyond the warranty period[246] - The company offers a 'Try and Buy' program allowing businesses to test 3D printers before purchase, with customer support provided during the trial period[247] - Stratasys Direct Manufacturing provides on-demand parts production using polymer 3D printing, with over 30 years of experience and a focus on rapid prototyping and production parts[248] Supply Chain and Inventory Management - The company maintains an inventory of parts for timely assembly, with certain components like PolyJet 3D printing system printer heads supplied by a sole supplier, Ricoh[261]

Financial Data and Key Metrics Changes - Consolidated revenue for Q3 2022 was $162.2 million, up 2% year-over-year, and up 7.8% when adjusted for divestitures and at constant currency [21][22] - GAAP gross margin improved to 43.6% from 42.9% year-over-year, while non-GAAP gross margin increased to 48.5% from 48.2% [24] - Non-GAAP operating income for the quarter was $4.5 million, compared to $1.8 million in the same period last year, reflecting improved operational efficiency [25] Business Line Data and Key Metrics Changes - OEM business revenue grew approximately 10% year-over-year at constant currency, with system revenue increasing by 18.9% adjusted for FX and divestitures [10][21] - Product revenue rose by 3% to $112.1 million, with system revenue growing by 7.7% to $56.3 million [22] - Consumable revenue declined by 1.4% to $55.8 million, but grew by 3.4% when adjusted for divestitures and at constant currency [22] Market Data and Key Metrics Changes - The market has slowed, resulting in longer sales cycles and occasional deferral of orders, particularly affecting the prototyping business [8][27] - Despite macroeconomic challenges, sectors such as automotive, aerospace, education, and defense are performing well, with Europe showing surprising resilience [36] Company Strategy and Development Direction - The company aims to shift more revenue from prototyping to manufacturing, enhancing its focus on operational efficiencies and cost management [9][10] - Stratasys is expanding its portfolio through acquisitions, such as Covestro's additive manufacturing materials business, to enhance its materials offering and drive growth [12][13] - The company is committed to increasing its addressable market and capturing new use cases across various verticals [10][12] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the company's ability to grow despite current economic challenges, emphasizing the importance of long-term customer relationships [35][71] - The company anticipates continued pressure from macroeconomic factors, including inflation and currency exchange rates, affecting purchasing behavior [27][28] - Future guidance has been adjusted to reflect a more cautious outlook, with expected revenue growth of approximately 10% over 2021 [28] Other Important Information - The company ended the quarter with a strong balance sheet, including $349 million in cash and no debt, positioning it well for future growth opportunities [11][26] - The company is focused on maintaining operational efficiency, with operating expenses as a percentage of revenue improving to 45.8% from 47.1% year-over-year [24][62] Q&A Session Summary Question: Insights on customer purchasing behavior and 2023 budgets - Management noted that while there are delays in purchasing due to economic conditions, long-term plans remain intact, and customers are still interested in additive manufacturing solutions [35][36] Question: Drivers of gross margin improvement - Management highlighted operational efficiencies, increased inventory management, and the divestment of MakerBot as key factors contributing to improved gross margins [37][39] Question: Visibility on guidance reduction - The reduction in guidance was attributed to longer sales cycles and unexpected delays rather than a decrease in demand [41][43] Question: Sustainability of profitability in a challenging environment - Management remains confident in achieving double-digit operating margins in the long term, supported by a strong business model and operational efficiencies [45][46] Question: Performance of new products like Origin and H350 - Both products are meeting expectations, with Origin showing faster adoption due to its ease of use compared to H350 [51][52] Question: Cash flow and inventory management - The decrease in cash was primarily due to M&A activities and increased inventory purchases to support demand, with a focus on maintaining a strong cash position [73][75]