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6-K 1 ea0201287-6k_stratasys.htm REPORT OF FOREIGN PRIVATE ISSUER

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

 

FORM 6-K

 

Report of Foreign Private Issuer

Pursuant to Rule 13a-16 or 15d-16

under the Securities Exchange Act of 1934

 

For the month of March 2024

 

Commission File Number 001-35751

 

STRATASYS LTD.

(Translation of registrant’s name into English)

 

c/o Stratasys, Inc.
7665 Commerce Way
Eden Prairie, Minnesota 55344
  1 Holtzman Street, Science Park
P.O. Box 2496
Rehovot, Israel 76124

 

(Addresses of principal executive offices)

 

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F:

 

Form 20-F ☒     Form 40-F ☐

 

 

 


  

CONTENTS

 

Quarterly and Annual Results of Operations

 

On March 7, 2024, Stratasys Ltd. (“we” or “us”) announced our financial results for the fourth quarter and fiscal year ended December 31, 2023.  A copy of our press release announcing our results is furnished as Exhibit 99.1 to this Report of Foreign Private Issuer on Form 6-K (this “Form 6-K”) and is incorporated herein by reference.

 

In conjunction with the conference call being held on March 7, 2024 to discuss our results, we are furnishing a copy of the slide presentation that provides supplemental information regarding our business and our financial results, and which will be referenced on that conference call. We have attached that presentation as Exhibit 99.2 to this Form 6-K, which exhibit is incorporated herein by reference.

 

The information in this Form 6-K, including Exhibits 99.1 and 99.2, shall not be deemed to be “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended, and shall not be incorporated by reference into any filing under the Securities Act of 1933, as amended, except as shall be expressly set forth by specific reference in such filing.

 

Exhibits

 

The following exhibits are furnished as part of this Form 6-K:

 

Exhibit   Description
     
99.1   Press release dated March 7, 2024 announcing the financial results of Stratasys Ltd. for the fourth quarter and year ended December 31, 2023
     
99.2   Slide presentation providing supplemental information to be referenced on the conference call of Stratasys Ltd. discussing its quarterly and annual financial results, being held on March 7, 2024

 

1


 

SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

  STRATASYS LTD.
   
Dated: March 7, 2024 By: /s/ Eitan Zamir
  Name:  Eitan Zamir
  Title: Chief Financial Officer

 

 

2

 

 

EX-99.1 2 ea0201287ex99-1_stratasys.htm PRESS RELEASE DATED MARCH 7, 2024 ANNOUNCING THE FINANCIAL RESULTS OF STRATASYS LTD. FOR THE FOURTH QUARTER AND YEAR ENDED DECEMBER 31, 2023

Exhibit 99.1

 

 

Stratasys Releases Fourth Quarter and Full Year 2023 Financial Results

 

Fourth quarter revenue of $156.3 million, 1.3% higher than the fourth quarter 2022 excluding divestitures, and 1.9% lower than the actual fourth quarter 2022 revenues

 

Record-level recurring revenue for consumables reflects continued strong printer utilization

 

Fourth quarter GAAP net loss of $15.0 million, or $0.22 per diluted share, and non-GAAP net income of $1.6 million, or $0.02 per diluted share

 

Tenth straight quarter of adjusted profitability

 

Full year revenue of $627.6 million, 1.3% higher than 2022, excluding divestitures, and 3.7% lower than the actual full year 2022 revenues

 

Full year GAAP net loss of $123.1 million, or $1.79 per diluted share, and non-GAAP net income of $7.7 million, or $0.11 per diluted share

 

$162.6 million cash and equivalents and no debt at year-end 2023

 

Stratasys board of directors continues its comprehensive strategic alternatives process

 

Provides 2024 Outlook

 

MINNEAPOLIS & REHOVOT, Israel - (BUSINESS WIRE) - March 7, 2024 - Stratasys Ltd. (Nasdaq: SSYS), a leader in polymer 3D printing solutions, today announced financial results for the fourth quarter and full year 2023.

 

Dr. Yoav Zeif, Stratasys’ Chief Executive Officer stated, “We continued to differentiate ourselves in 2023, achieving our tenth consecutive quarter of profitability on an adjusted basis. We also delivered 1.3% full year revenue growth when adjusted for divestitures despite a persistently challenging backdrop for our customers. Revenue in the fourth quarter was driven by another record for consumables sales, demonstrating how utilization of our systems remains strong, while a relentless focus on cost control contributed to improved margins.”

 

Dr. Zeif continued, “We are innovating and investing as we expand our leadership in additive manufacturing. Our newest and most advanced FDM offering, the F3300, is building a strong pipeline of interest after announcing Toyota as its first customer, and engagement across our entire suite of offerings remains robust. As macro-economic conditions normalize and capital spending constraints ease, we believe the pent-up demand for our best-in-class offerings will unlock, driving the next phase of outsized growth and increased profitability for our company.”

 

Summary - Fourth Quarter 2023 Financial Results Compared to Fourth Quarter 2022:

 

Revenue of $156.3 million compared to $159.3 million.

 

GAAP gross margin of 44.7%, compared to 43.1%.

 

 


 

 

Non-GAAP gross margin of 48.8%, compared to 48.4%.

 

GAAP operating income of $5.7 million, compared to operating income of $1.6 million.

 

Non-GAAP operating income of $2.0 million, compared to operating income of $5.1 million.

 

GAAP net loss of $15.0 million, or $0.22 per diluted share, compared to a net loss of $2.4 million, or $0.04 per diluted share.

 

Non-GAAP net income of $1.6 million, or $0.02 per diluted share, compared to net income of $4.6 million, or $0.07 per diluted share.

 

Adjusted EBITDA of $7.7 million, compared to $10.7 million.

 

Cash used in operations of $7.7 million, compared to cash used in operations of $18.1 million.

 

Summary - 2023 Financial Results Compared to 2022:

 

Revenue of $627.6 million compared to $651.5 million.

 

GAAP gross margin of 42.5%, compared to 42.4%.

 

Non-GAAP gross margin of 48.2%, compared to 48.0%.

 

GAAP operating loss of $87.6 million, compared to an operating loss of $57.2 million.

 

Non-GAAP operating income of $12.6 million, compared to operating income of $13.5 million.

 

GAAP net loss of $123.1 million, or $1.79 per diluted share, compared to a loss of $29.0 million, or $0.44 per diluted share.

 

Non-GAAP net income of $7.7 million, or $0.11 per diluted share, compared to net income of $10.3 million, or $0.15 per diluted share.

 

Adjusted EBITDA of $35.0 million, compared to $36.1 million.

 

Cash used in operations of $61.6 million, compared to cash used in operations of $75.4 million.

 

Financial Outlook:

 

Based on current market conditions and assuming that the impacts of global inflationary pressures, relatively high interest rates and supply chain costs do not impede economic activity further, the Company is providing the following outlook for 2024:

 

Full year revenue of $630 million to $645 million, improving sequentially through the year.

 

o Compare to 2023 revenue of approximately $616 million excluding divestments and annualizing Covestro.

 

2


 

 

Based on current logistics and materials costs, full year gross margins of 49.0%-49.5%, improving sequentially through the year.

 

Full year operating expenses in a range of $292 million to $297 million.

 

Full year non-GAAP operating margins in a range of 2.5% to 3.5%.

 

GAAP net loss of $88 million to $72 million, or ($1.24) to ($1.01) per diluted share.

 

Non-GAAP net income of $9 million to $14 million, or $0.12 to $0.19 per diluted share.

 

Adjusted EBITDA of $40 million to $45 million.

 

Capital expenditures of $20 million to $25 million.

 

Positive cash flow from operating activities.

 

Non-GAAP earnings guidance excludes $29 million to $31 million of projected amortization of intangible assets, $26 million to $28 million of share-based compensation expense, and reorganization and other expenses of $29 million to $35 million. Non-GAAP guidance includes tax adjustments of $2 million to $3 million on the above non-GAAP items.

 

Appropriate reconciliations between historical GAAP and non-GAAP financial measures are provided in a table at the end of our press release and slide presentation, with itemized detail concerning the non-GAAP financial measures.

 

Stratasys Ltd. Fourth Quarter 2023 Webcast and Conference Call Details

 

The Company plans to webcast its conference call to discuss its fourth quarter 2023 financial results on Thursday, March 7, 2024, at 8:30 a.m. (ET).

 

The investor conference call will be available via live webcast on the Stratasys Web site at investors.stratasys.com, or directly at the following web address:

 

https://event.choruscall.com/mediaframe/webcast.html?webcastid=cZzaGlQr

 

To participate by telephone, the U.S. toll-free number is 877-407-0619 and the international dial-in is +1-412-902-1012. Investors are advised to dial into the call at least ten minutes prior to the call to register. The webcast will be available for six months at investors.stratasys.com, or by accessing the above-provided web address.

 

Stratasys is leading the global shift to additive manufacturing with innovative 3D printing solutions for industries such as aerospace, automotive, consumer products, healthcare, fashion and education. Through smart and connected 3D printers, polymer materials, a software ecosystem, and parts on demand, Stratasys solutions deliver competitive advantages at every stage in the product value chain. The world’s leading organizations turn to Stratasys to transform product design, bring agility to manufacturing and supply chains, and improve patient care.

 

3


 

 

To learn more about Stratasys, visit www.stratasys.com, the Stratasys blog, Twitter, LinkedIn, or Facebook. Stratasys reserves the right to utilize any of the foregoing social media platforms, including the Company’s websites, to share material, non-public information pursuant to the SEC’s Regulation FD. To the extent necessary and mandated by applicable law, Stratasys will also include such information in its public disclosure filings.

 

Stratasys is a registered trademark and the Stratasys signet is a trademark of Stratasys Ltd. and/or its subsidiaries or affiliates. All other trademarks are the property of their respective owners.

 

Cautionary Statement Regarding Forward-Looking Statements

 

The statements in this press release regarding Stratasys’ strategy, and the statements regarding its projected future financial performance, including the financial guidance concerning its expected results for 2023 and beyond, are forward-looking statements reflecting management’s current expectations and beliefs. These forward-looking statements are based on current information that is, by its nature, subject to rapid and even abrupt change. Due to risks and uncertainties associated with Stratasys’ business, actual results could differ materially from those projected or implied by these forward-looking statements. These risks and uncertainties include, but are not limited to: the extent of our success at introducing new or improved products and solutions that gain market share; the extent of growth of the 3D printing market generally; the global macro-economic environment, including headwinds caused by inflation, relatively high interest rates, unfavorable currency exchange rates and uncertain economic conditions; changes in our overall strategy, including as related to any restructuring activities and our capital expenditures; the impact of potential shifts in the prices or margins of the products that we sell or services that we provide, including due to a shift towards lower margin products or services; the impact of competition and new technologies; the outcome of our board of directors’ comprehensive process to explore strategic alternatives for our company; potential further charges against earnings that we could be required to take due to impairment of additional goodwill or other intangible assets; the extent of our success at successfully consummating and integrating into our existing business acquisitions or investments in new businesses, technologies, products or services; the potential adverse impact of recent global interruptions and delays involving freight carriers and other third parties on our supply chain and distribution network; global market, political and economic conditions, and in the countries in which we operate in particular; potential adverse effects of Israel’s retaliatory war against the terrorist organization Hamas; costs and potential liability relating to litigation and regulatory proceedings; risks related to infringement of our intellectual property rights by others or infringement of others’ intellectual property rights by us; the extent of our success at maintaining our liquidity and financing our operations and capital needs; the impact of tax regulations on our results of operations and financial condition; and those additional factors referred to in Item 3.D “Key Information - Risk Factors”, Item 4, “Information on the Company”, Item 5, “Operating and Financial Review and Prospects,” and all other parts of our Annual Report on Form 20-F for the year ended December 31, 2023, which we expect to file with the U.S. Securities and Exchange Commission, or SEC, in the coming days (the “2023 Annual Report”). Readers are urged to carefully review and consider the various disclosures made throughout our 2023 Annual Report and the Reports of Foreign Private Issuer on Form 6-K that attach Stratasys’ unaudited, condensed consolidated financial statements and its review of its results of operations and financial condition, for the quarterly periods throughout 2024, which will be furnished to the SEC throughout 2024, and our other reports filed with or furnished to the SEC, which are designed to advise interested parties of the risks and factors that may affect our business, financial condition, results of operations and prospects. Any guidance provided, and other forward-looking statements made, in this press release are provided or made (as applicable) as of the date hereof, and Stratasys undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.

 

4


 

 

Use of Non-GAAP Financial Measures

 

The non-GAAP data included herein, 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 our results of operations (i) on an ongoing basis after excluding mergers, acquisitions and divestments related expense or gains and reorganization-related charges or gains, and legal provisions, (ii) excluding non-cash items such as stock-based compensation expenses, acquired intangible assets amortization, including intangible assets amortization related to equity method investments, impairment of long-lived assets and goodwill, revaluation of our investments and the corresponding tax effect of those items, (iii) for certain non-GAAP measures, after eliminating the impact of changes attributable to currency exchange rate fluctuations, and (iv) after excluding changes in revenues solely attributable to divestitures of former subsidiary companies. These non-GAAP adjustments either do not reflect actual cash outlays that impact our liquidity and our financial condition or have a non-recurring impact on the statement of operations, as assessed by management. These non-GAAP financial measures are presented to permit investors to more fully understand how management assesses our performance for internal planning and forecasting purposes. The limitations of using these non-GAAP financial measures as performance measures are that they provide a view of our results of operations without including all items indicated above during a period, which may not provide a comparable view of our performance to other companies in our industry. Investors and other readers should consider non-GAAP measures only as supplements to, not as substitutes for or as superior measures to, the measures of financial performance prepared in accordance with GAAP. Reconciliation between results on a GAAP and non-GAAP basis is provided in a table below.

 

Yonah Lloyd

 

CCO, VP Investor Relations

 

Yonah.Lloyd@stratasys.com

 

Source: Stratasys Ltd.

 

5


 

Stratasys Ltd.
 
Consolidated Balance Sheets
(in thousands, except share data)
(Unaudited)

 

    December 31,     December 31,  
    2023     2022  
ASSETS            
             
Current assets            
Cash and cash equivalents     $ 82,585     $ 150,470  
Short-term bank deposits       80,000       177,367  
Accounts receivable, net of allowance for credit losses of $1,449 and $861 as of December 31, 2023 and December 31, 2022, respectively     172,009       144,739  
Inventories       192,976       194,054  
Prepaid expenses        7,929       5,767  
Other current assets       24,596       27,823  
                 
Total current assets     560,095       700,220  
                 
Non-current assets                
Property, plant and equipment, net     197,552       195,063  
Goodwill     100,051       64,953  
Other intangible assets, net     127,781       121,402  
Operating lease right-of-use assets     18,895       18,122  
Long-term investments     115,083       141,610  
Other non-current assets     14,448       18,420  
                 
Total non-current assets     573,810       559,570  
                 
Total assets     $ 1,133,905     $ 1,259,790  
                 
LIABILITIES AND EQUITY                
                 
Current liabilities                
Accounts payable      $ 46,785     $ 72,921  
Accrued expenses and other current liabilities       36,656       45,912  
Accrued compensation and related benefits        33,877       34,432  
Deferred revenues - short-term       52,610       50,220  
Operating lease liabilities - short-term       6,498       7,169  
                 
Total current liabilities     176,426       210,654  
                 
Non-current liabilities                
Deferred revenues - long-term       23,655       25,214  
Deferred income taxes       723       5,638  
Operating lease liabilities - long-term       12,162       10,670  
Contingent consideration       11,900       23,707  
Other non-current liabilities     24,200       24,475  
                 
Total non-current liabilities     72,640       89,704  
                 
Total liabilities     249,066       300,358  
                 
Equity                
Ordinary shares, NIS 0.01 nominal value, authorized 180,000   shares; 69,656 shares and 67,086 shares issued and outstanding at December 31, 2023 and December 31, 2022, respectively     195       187  
Additional paid-in capital     3,091,649       3,048,915  
Accumulated other comprehensive loss     (7,079 )     (12,818 )
Accumulated deficit     (2,199,926 )     (2,076,852 )
Total Equity       884,839       959,432  
                 
Total liabilities and equity   $ 1,133,905     $ 1,259,790  

 

6


 

Stratasys Ltd.
 
Consolidated Statements of Operations
(in thousands, except per share data)
(Unaudited)

 

    Three Months Ended December 31,     Twelve Ended December 31,  
    2023     2022     2023     2022  
                         
Revenues                        
Products   $ 110,388     $ 111,197     $ 433,741     $ 452,124  
Services     45,949       48,062       193,857       199,359  
      156,337       159,259       627,598       651,483  
                                 
Cost of revenues                                
Products     58,275       58,180       226,510       234,601  
Services     28,304       32,431       134,064       140,415  
      86,579       90,611       360,574       375,016  
                                 
Gross profit     69,758       68,648       267,024       276,467  
                                 
Operating expenses                                
Research and development, net     25,078       21,387       94,425       92,876  
Selling, general and administrative     39,006       45,665       260,179       240,750  
      64,084       67,052       354,604       333,626  
                                 
Operating income (loss)     5,674       1,596       (87,580 )     (57,159 )
                                 
Gain from deconsolidation of subsidiary     -       -       -       39,136  
Financial income, net     846       2,309       2,993       229  
                                 
Income (loss) before income taxes     6,520       3,905       (84,587 )     (17,794 )
                                 
Income tax expense     (637 )     (2,658 )     (5,782 )     (5,454 )
                                 
Share in losses of associated companies     (20,839 )     (3,637 )     (32,705 )     (5,726 )
                                 
Net loss   $ (14,956 )   $ (2,390 )   $ (123,074 )   $ (28,974 )
                                 
Net loss per share                                
Basic   $ (0.22 )   $ (0.04 )   $ (1.79 )   $ (0.44 )
Diluted   $ (0.22 )   $ (0.04 )   $ (1.79 )   $ (0.44 )
                                 
Weighted average ordinary shares outstanding                                
Basic     69,375       66,908       68,666       66,491  
Diluted     69,375       66,908       68,666       66,491  

 

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        Three Months Ended December 31,  
        2023   Non-GAAP    2023   2022   Non-GAAP   2022  
        GAAP   Adjustments   Non-GAAP   GAAP   Adjustments   Non-GAAP  
        U.S. dollars and shares in thousands (except per share amounts)  
    Gross profit (1)   $ 69,758     $ 6,565     $ 76,323     $ 68,648     $ 8,423   $ 77,071  
    Operating income (1,2)     5,674       (3,659 )     2,015       1,596       3,456       5,052  
    Net income (loss) (1,2,3)     (14,956 )     16,604       1,648       (2,390 )     6,940       4,550  
    Net income (loss) per diluted share (4)   $ (0.22 )   $ 0.24     $ 0.02     $ (0.04 )   $ 0.11     $ 0.07  
                                                     
(1)   Acquired intangible assets amortization expense             5,446                       7,297          
    Non-cash stock-based compensation expense             879                       1,041          
    Restructuring and other related costs             240                       85          
                  6,565                       8,423          
                                                     
(2)   Acquired intangible assets amortization expense             1,688                       2,370          
    Non-cash stock-based compensation expense             6,997                       7,664          
    Restructuring and other related costs             461                       874          
    Revaluation of investments             -                       560          
    Contingent consideration             (23,206 )                     (19,490 )        
    Legal, consulting and other expenses             3,836                       3,056          
                  (10,224 )                     (4,967 )        
                  (3,659 )                     3,456          
                                                     
(3)   Corresponding tax effect and other expenses             489                       1,770          
    Equity method related amortization, divestments and impairments             19,790                       1,714          
    Finance expenses             (16 )                     -          
                $ 16,604                     $ 6,940          
                                                     
(4)   Weighted average number of ordinary shares outstanding - Diluted     69,375               69,801       66,908             67,231  

 

8


 

        Twelve Months Ended December 31,  
        2023   Non-GAAP    2023   2022   Non-GAAP   2022  
        GAAP   Adjustments   Non-GAAP   GAAP   Adjustments   Non-GAAP  
        U.S. dollars and shares in thousands (except per share amounts)  
    Gross profit (1)   $ 267,024     $ 35,764     $ 302,788     $ 276,467     $ 36,016     $ 312,483  
    Operating income (loss) (1,2)     (87,580 )     100,207       12,627       (57,159 )     70,691       13,532  
    Net income (loss) (1,2,3)     (123,074 )     130,783       7,709       (28,974 )     39,235       10,261  
    Net income (loss) per diluted share (4)   $ (1.79 )   $ 1.90     $ 0.11     $ (0.44 )   $ 0.59     $ 0.15  
                                                     
(1)   Acquired intangible assets amortization expense             19,603                       28,158          
    Non-cash stock-based compensation expense             3,701                       4,082          
    Restructuring and other related costs             12,460                       (174 )        
    Impairment charges             -                       3,949          
                  35,764                       36,016          
                                                     
(2)   Acquired intangible assets amortization expense             9,167                       8,950          
    Non-cash stock-based compensation expense             27,917                       29,378          
    Restructuring and other related costs             7,087                       2,737          
    Revaluation of investments             4,880                       3,777          
    Contingent consideration             (22,329 )                     (18,293 )        
    Legal, consulting and other expenses             37,721                       8,126          
                  64,443                       34,676          
                  100,207                       70,691          
                                                     
(3)   Corresponding tax effect             3,894                       4,988          
    Equity method related amortization, divestments and impairments             24,871                       2,285          
    Finance expenses             1,811                       406          
    Net gain from sale of business             -                       (39,136 )        
                $ 130,783                     $ 39,235          
                                                     
(4)   Weighted average number of ordinary shares outstanding - Diluted     68,666               69,233       66,491               67,068  

 

9


 

Stratasys Ltd.  

Reconciliation of GAAP to Non-GAAP Forward Looking Guidance

Fiscal Year 2024    

 

(in millions, except per share data)        
GAAP net loss       $(88) to $(72)    
         
Adjustments        
Stock-based compensation expense     $29 to $31    
Intangible assets amortization expense     $26 to $28    
Reorganization and other     $29 to $35    
Tax expense (benefit) related to Non-GAAP adjustments     $2 to $3    
         
Non-GAAP net income     $9 to $14    
         
GAAP loss per share     $(1.24) to $(1.01)    
         
Non-GAAP diluted earnings per share     $0.12 to $0.19    

 

 

10

 

EX-99.2 3 ea0201287ex99-2_stratasys.htm SLIDE PRESENTATION PROVIDING SUPPLEMENTAL INFORMATION TO BE REFERENCED ON THE CONFERENCE CALL OF STRATASYS LTD. DISCUSSING ITS QUARTERLY AND ANNUAL FINANCIAL RESULTS, BEING HELD ON MARCH 7, 2024

Exhibit 99.2

 

Make additive work for you Q4 and FY 2023 Results Speakers Dr. Yoav Zeif, CEO Eitan Zamir, CFO Yonah Lloyd, CCO & VP IR March 7, 2024 Conference Call and Webcast Details US Toll - Free Dial - In 1 - 877 - 407 - 0619 International Dial - In 1 - 412 - 902 - 1012 Live Webcast and Replay https://event.choruscall.com/mediaframe/ webcast.html?webcastid=cZzaGlQr Make additive work for you

 


 


Forward - Looking Statements Cautionary Statement Regarding Forward - Looking Statements The statements in this slide presentation regarding Stratasys' strategy, and the statements regarding its projected future financial performance, including the financial guidance concerning its expected results for 2024, are forward - looking statements reflecting management's current expectations and beliefs. These forward - looking statements are based on current information that is, by its nature, subject to rapid and even abrupt change. Due to risks and uncertainties associated with Stratasys' business, actual results could differ materially from those projected or implied by these forward - looking statements. These risks and uncertainties include, but are not limited to: the degree of our success at introducing new or improved products and solutions that gain market share; the extent of growth of the 3D printing market generally; global macro - economic trends that have been adversely affecting, and may continue to adversely affect, our results, including inflationary pressures and higher interest rates that reduce capital expenditures; the impact of potential shifts in the prices or margins of the products that we sell or services that we provide, including due to a shift towards lower margin products or services; the impact of competition and new technologies; the outcome of our board’s comprehensive process to explore strategic alternatives for our company; potential further charges against earnings that we could be required to take due to impairment of additional goodwill or other intangible assets that we have recently acquired or may acquire in the future; the extent of our success at successfully integrating into our existing business, or making additional, acquisitions or investments in new businesses, technologies, products or services ; potential adverse impact that recent global interruptions involving freight carriers and other third parties may have on our supply chain and distribution network; potential changes in our management and board of directors; global market, political and economic conditions, in the countries in which we operate in particular (including risks stemming from Russia’s invasion of Ukraine); the degree of impact of I srael’s war against the terrorist organization Hamas, given our Israeli headquarters, factories and significant operations; costs and potential liability relating to litigation and regulatory proceedings; risks related to infringement of our intellectual property rights by others or infringement of others' intellectual property rights by us; potential cyber attacks against, or other breaches to, our information technologies systems; the extent of our success at maintaining our liquidity and financing our operations and capital needs; the impact of tax regulations on our results of operations and financial condition; and those additional factors referred to in Item 3.D “Key Information - Risk Factors”, Item 4, “Information on the Company”, Item 5, “Operating and Financial Review and Prospects,” and all other parts of our Annual Report on Form 20 - F for the year ended December 31, 2023, to be filed with the SEC in early March 2024 (the “2023 Annual Report”). Readers are urged to carefully review and consider the various disclosures made throughout our 2023 Annual Report (once it is filed) and the Reports of Foreign Private Issuer on Form 6 - K that will attach Stratasys’ unaudited, condensed consolidated financial statements and its review of its results of operations and financial condition on a quarterly basis, which Stratasys will furnish to the SEC throughout 2024, and our other reports filed with or furnished to the SEC, which are designed to advise interested parties of the risks and factors that may affect our business, financial condition, results of operations and prospects. Any guidance provided, and other forward - looking statements made, in this slide presentation are made as of the date hereof, and Stratasys undertakes no obligation to publicly update or revise any forward - looking statements, whether as a result of new information, future events or otherwise, except as required by law. Make additive work for you Use of Non - GAAP Financial Information Use of Non - GAAP Financial Measures The non - GAAP data included herein, 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 our results of operations ( i ) on an ongoing basis after excluding mergers, acquisitions and divestments related expense or gains and reorganization - related charges or gains, legal provisions, and (ii) excluding non - cash items such as stock - based compensation expenses, acquired intangible assets amortization, including intangible assets amortization related to equity method investments, impairment of long - lived assets and goodwill, revaluation of our investments and the corresponding tax effect of those items. The items eliminated via these non - GAAP adjustments either do not reflect actual cash outlays that impact our liquidity and our financial condition or have a non - recurring impact on the statement of operations, as assessed by management. These non - GAAP financial measures are presented to permit investors to more fully understand how management assesses our performance for internal planning and forecasting purposes. The limitations of using these non - GAAP financial measures as performance measures are that they provide a view of our results of operations without including all items indicated above during a period, which may not provide a comparable view of our performance to other companies in our industry. Investors and other readers should consider non - GAAP measures only as supplements to, not as substitutes for or as superior measures to, the measures of financial performance prepared in accordance with GAAP. Reconciliation between results on a GAAP and non - GAAP basis is provided in a table later in this slide presentation.

 


Make additive work for you CEO Dr. Yoav Zeif ▪ Profitable results in a CapEx - constrained environment ▪ Another record Consumables quarter, testament to strong usage ▪ Tenth consecutive quarter of adjusted profitability reflects business model discipline that differentiates Stratasys ▪ Laying foundation for meaningful use - cases that will significantly contribute to financial performance. ▪ Best - in - class technologies increasingly broaden MFG applications ▪ Pent - up demand to re - accelerate growth as macro environment improves and CapEx patterns normalize ▪ 2023 revenues up 1.3% YoY after backing out divestitures ▪ 2023 GM improvement reflects cost - control and efficiency focus ▪ Healthy balance sheet to support our growth ▪ 2023 revenues from MFG was 34%, up from 32.5% in 2022 We expect this to grow stronger as macro conditions improve - majority of our business will eventually come from MFG Make additive work for you Daimler Truck North America adds H 350 to Stratasys fleet MFG support parts, functional prototypes Shifting more to MFG Furthering FDM leadership with innovative new F 3300 Double the speed, greater accuracy, focus on MFG Toyota first customer – strong engagement pipeline Q4 Customer Success: Industrial Whirlpool becomes Neo customer PartsToGo Service Bureau adds four more Neo systems Neo is prototyping today, next - gen for end - part MFG planned for 2025 Formula One penetration – multi - unit sales to Toyota, McLaren, others Wind - tunnel testing and tooling Interior design for Mercedes - Benz, Maserati, VW, Stellantis Make additive work for you

 


 


Dental – Accelerated Growth Coming ▪ One of the largest and most exciting growth avenues for the 3D printing industry ▪ Expanding our customer base with new product offerings to address a broader range of applications, including Dentures, Implant Models, Surgical Guides ▪ TrueDent is the only solution that offers permanent, multi - color, monolithic dentures at scale, at more than 50% lower cost ▪ Customers expanding printer fleets and increasing consumables utilization Medical – Imaging and Surgical Innovation ▪ Partnership with Siemens Healthineers for a landmark research project on advanced medical imaging phantoms for computed tomography imaging to ensure optimal CT scanner performance ▪ University Hospital Birmingham in England exclusively using our J5 printer to create cutting guides to improve surgical outcomes for head and neck cancer patients ▪ Stratasys J5 DentaJet, J5MediJet and J850 Digital Anatomy printers win the “Medical, Dental or Healthcare Application” category at prestigious 3D Printing Industry Awards in London Q 4 Dental and Medical Advances Make additive work for you Monetizing GrabCAD ▪ GC has 40K+ users – continuing to add recurring revenue streams ▪ Early success with GC Print Pro, achieving faster, more accurate and economical prints across multiple systems simultaneously ▪ Helps service bureaus and internal 3DP shops rapidly and accurately estimate the cost and time of printed parts ▪ Available now on FDM/SAF, PolyJet announced, P3/Neo in the future First “Weatherability” Material ▪ Origin One DLP for automotive parts manufacturing ▪ Somos WeatherX 100, our first material using SAE automotive industry standards tested for weatherability, UV, durability and dimensional accuracy ▪ Introducing additional materials in 2024 to strengthen our position in DLP and open more MFG use cases Q4 Software and Materials Expansion Make additive work for you

 


 


CFO Eitan Zamir CFO Remarks ▪ Achieved solid results in the fourth quarter against what has continued to be a challenging backdrop of adverse macroeconomic factors and related pressures ▪ Confident that the high level of demand we are seeing in our customer engagements will translate into meaningful growth once these headwinds abate ▪ Results demonstrate the resilience our diversified offering provides, which led to our tenth consecutive quarter of profitability Make additive work for you 10 Non - GAAP GAAP Change Y/Y Q4 - 23 Q4 - 22 Change Y/Y Q4 - 23 Q4 - 22 - 1.9% 156.3 159.3 - 1.9% 156.3 159.3 Total Revenue (0.8) 76.3 2 69.8 68.6 Gross Profit 0.

 


% 48. % % . % 4 . % 43. % ▪ % Margin ( 1 ) 4.1 5.7 1.6 Operating Income - % % % 2.6% 3.6% 1.0% ▪ % Margin (3.0) (12.6) (15.0) (2.4) Net Income (Loss) - 9 % 1.0% 2. % - 8.1% - 9.6% - 1.5% ▪ % Margin ( 0.0 ) 0.0 0.0 (0.18) (0.22) (0.04) Diluted EPS 3.9% 69.8 67. 3.7% 69.4 6 6.9 Diluted Shares Note: $ in millions unless noted otherwise. All numbers and percentages rounded Financial Results Make additive work for you Non - GAAP GAAP Change Y/Y FY - 23 FY - 22 Change Y/Y FY - 23 FY - 22 - 3.7% 627.6 651.5 - 3.7% 627.6 651.5 Total Revenue (9.7) 302.8 312.5 (9.5) 267.0 276.5 Gross Profit 0.2% 48.2% 48.0% 0.1% 42.5% 42.4% ▪ % Margin (0.9) 12.6 13.5 ( 3 .4 ) ( .6 ) (57.2) Operating Income - 0.1% 2.0% 2.1% - 5. % - 14. % - 8.8% ▪ % Margin (2.6) 7.7 10.3 ( ) ( 1 . ) (29.0) Net Income (Loss) - 0.4% 1.2% 1.6% - 1 % - 1 % - 4.4% ▪ % Margin (0.04) 0.11 0.15 ( 1. ) ( 1. ) (0.44) Diluted EPS 3.1% 69.2 67.1 3.3% 68.7 66.5 Diluted Shares Note: $ in millions unless noted otherwise.

 


All numbers and percentages rounded Quarterly Trend Revenues – Q 4 ’ 2 111.2 101.0 109.1 113.2 110.4 48.1 48.4 50.7 48.9 45.9 159.3 149.4 159.8 162.1 156.3 Q4' 22 Q1' 23 Q2'23 Q3'23 Q4'23 Product Service Y/Y Revenue - 0.7 % Product - $110.4M - 13.7 % ▪ Systems - $47.4M 11.9% ▪ Consumables - $63.0M - 4.6% Services - $45.9M 1.6% ▪ Customer Support - $30.7M Q 4 2023 Revenue ▪ Revenue of $ 156.3 million, up 1.3 % excluding divestitures from Stratasys Direct ( down 1.9 % vs. Q 4 2022 as reported) ▪ Product revenue down 0.7 % vs. Q 4 2022 . Consumables revenue of $ 63.0 M up 11.9 % ▪ Services revenue up 3.6 % excluding divestitures from Stratasys Direct ( down 4.6 % vs. Q 4 2022 as reported) Make additive work for you Revenues – 202 Y/Y Revenue - 4.1 % Product - $433.7M - 16.4 % ▪ Systems - $187.7M % ▪ Consumables - $246.0M - 2.

 


% Services - $193.9M % ▪ Customer Support - $30.6M FY 2023 Revenue Make additive work for you ▪ Revenue of $ 627.6 million up 1.3 % excluding MakerBot and Stratasys Direct divestitures ( down 3.7 % vs. 2022 as reported) ▪ Product revenue was down 1.1 % excluding MakerBot ( down 4.1 % vs. 2022 as reported) ▪ Services revenue up . % excluding Stratasys Direct divestments (down 2.8 % vs. 2022 as reported) Quarterly Trend 430.7 339.8 417.6 452.1 433.7 205.4 181.0 189.7 199.4 193.9 636.1 520.8 607.2 651.5 627.6 2019 2020 2021 2022 2023 Product Service * Reflects ~$26M of MakerBot revenue. Excluding divestment, 2022 revenues of ~$625.5M Note: $ in millions unless noted otherwise.

 


All numbers and percentages rounded GAAP Non - GAAP 43.1 % 43.8 % 41.5% 40.5 % 44.7% 47.7 % 49.4% 47.2 % 47.4 % 47.2 % 32.5% 32.1 % 29.0% 24.4 % 38.4% Q4 '22 Q1 '23 Q2 '23 Q3-23 Q4-23 48.4 % 47.3 % 48.5 % 48.3% 48.8 % 54.7% 53.8 % 52.3% 52.5 % 52.6 % 33.7 % 33.8% 40.4 % 38.4% 39.8 % Q4 '22 Q1 '23 Q2 '23 Q3-23 Q4-23 Service Gross Margin Product Gross Margin Total Gross Margin All percentages rounded Gross margins expected to continue improving with revenue growth Make additive work for you Gross Margins Improving GAAP operating expenses (absolute and as a percentage of revenues) Non - GAAP operating expenses (absolute and as a percentage of revenues) 67.1 64.1 Q4'22 Q4'23 4 . 0 % 72 .0 74.3 Q4'22 Q4'23 47.5% Note: $ in millions unless noted otherwise. All numbers and percentages rounded 42.1 % 45.2 % Make additive work for you Q 4 Operating Expenses Up Due Primarily To Covestro Acquisition

 


 


( 2.4 ) ( 15.0 ) 1.6 5.7 Non - GAAP operating income ( 3.2 % in Q 4 ’ 22 vs 1.3 % in Q 4 ’ 23 out of total revenue) GAAP operating gain Non - GAAP net income GAAP net loss Note: $ in millions unless noted otherwise. All numbers and percentages rounded Q 4 ’ 22 Q4’23 Q 4 ’ 22 Q 4 ’ 23 Q 4 ’ 22 Q4’23 Q 4 ’ 22 Q 4 ’ 23 Q 4 ’ 22 Q4’23 7.7 10.7 1.6 Non - GAAP EBITDA ( 6.7 % in Q 4 ’ 22 vs 4.9 % in Q 4 ’ 23 out of total revenue) 5.1 2.0 4.6 Make additive work for you Tenth Straight Quarter of Positive Adjusted EPS Balance sheet items Cash flow from operating activities* Q - 23 Q3 - 23 Q4 - 22 162.6 184.6 327.8 Cash and Cash Equivalents and Short - term deposits 172.0 164.1 7 Accounts Receivable 193.0 197.4 194.1 Inventories 383.3 382.9 351.8 Net Working Capital 16 *Operating Cash Flow would have been ~$ 7 million after excluding ~$ 15 M in costs related to mergers and acquisitions activities and takeover defense Note: $ in millions unless noted otherwise.

 


 


 


All numbers and percentages rounded Make additive work for you ( 18.1 ) (7.7) (75.4) ( 61.6 ) Q 4 - 22 Q 4 - 23 2022 2023 Healthy Balance Sheet Positioned for Opportunities Revenue Compare to ~$ 616 M 2023 revenue excluding divestitures and annualizing Covestro Gross Margins Non - GAAP Operating Expenses Non - GAAP Operating Margins EPS - diluted - adjusted ($1.24) - ($1.01) GAAP EPS diluted CAPEX EBITDA - adjusted $ 630 M - $ 645 M 49.0 % - 49.5 % $292M - $297M 2.5 % - 3.5 % $0.12 - $ 0.19 $20M - $25M $ 40 M - $ 45 M Make additive work for you 2024 Outlook CEO Dr. Yoav Zeif CEO Summary ▪ Thanks to our global teams for their professionalism and dedication to help drive continued profitability as our business grows, creating long term value for all our stakeholders ▪ Particularly proud of our Israeli employees and families, many of whom were called to military service for most of the fourth quarter, as well as our employees worldwide, who stepped up valiantly to carry the additional workload to help ensure that our business operation was uninterrupted, with no material impact ▪ We differentiate ourselves with best - in - class technologies, an unparalleled go to market infrastructure, and an ongoing focus on operating efficiencies ▪ Challenging market conditions slowing pace of purchasing is only a delay in the inevitable widespread adoption of 3D printing ▪ Continued high utilization of existing systems and levels of engagement provide optimism as we continue to lay the foundation for expanded applications to drive accelerated growth Make additive work for you 19 THANK YOU. Make additive work for you

 


 


Appendix Note: $ in thousands unless noted otherwise. All numbers and percentages rounded Three months ended December 31 , 2022 Three months ended December 31 , 2023 Non - GAAP Adjustments GAAP Non - GAAP Adjustments GAAP $ 77,071 $ (8,423) $ 68,648 $ 76,323 $6,565 $69,758 Gross Profit (1) 5,052 3,456 1,596 2,015 - 3,659 5,674 Operating income (Loss) (1,2) 4,550 6,940 (2,390) 1,648 16,604 (14,956) Net income (Loss) (1,2,3) $ 0.07 $0.11 $ ( 0.04 ) $ 0.02 $0.24 $ (0.22) Net income (Loss) per diluted share (4) 7,297 5,446 1) Acquired intangible assets amortization expense 1,041 879 Non - cash stock - based compensation expense 85 240 Restructuring and other related costs 8,423 6,565 2,370 1,688 2) Acquired intangible assets amortization expense 7,664 6,997 Non - cash stock - based compensation expense 874 461 Restructuring and other related costs 560 0 Revaluation of investment (19,490) (23,206) Contingent consideration 3,056 3,836 Legal, consulting and other expenses (4,967) (10,224) 3,456 (3,659) 1,770 489 3) Corresponding tax effect and other expenses 1,714 19,790 Equity method related amortization, impairment and other (16) Finance expenses $6,940 $16,604 67,262 66,908 69,801 69,375 4) Weighted average number or ordinary shares outstanding – Diluted