Form 6-K STRATASYS LTD. For: Mar 01

 

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 2021

 

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 ☐

 

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): ☐ 

 

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): ☐

 

 

 

CONTENTS

 

Quarterly and Annual Results of Operations

 

On March 1, 2021, Stratasys Ltd. (“we” or “us”) announced our financial results for the fourth quarter and the full year ended December 31, 2020.  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 1, 2021 to discuss our results, we are furnishing a copy of the PowerPoint 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 to this Form 6-K as Exhibit 99.2, 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.

 

 

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 1, 2021	By:	/s/ Lilach Payorski
	Name:	Lilach Payorski
	Title:	Chief Financial Officer

 

 

EXHIBIT INDEX

 

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

 

Exhibit		Description
99.1		Press release dated March 1, 2021 announcing the financial results of Stratasys Ltd. for the fourth quarter and full year ended December 31, 2020
99.2		PowerPoint 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 1, 2021

 

 

3

 

Exhibit 99.1

 

 

 

Stratasys Releases Fourth Quarter and Full Year 2020 Financial Results

 

	●	Fourth quarter revenue of $142.4 million and $520.8 million for full year 2020

	●	Fourth quarter GAAP net income of $11.0 million, or $0.20 per diluted share, and non-GAAP net income of $7.0 million, or $0.13 per diluted share

	●	Produced 11% quarterly sequential revenue growth, improved gross margin and operating income

	●	Generated $23.7 million of cash from operations in the fourth quarter resulting in $299.1 million net cash with no debt

●

Manufacturing revenue contribution in excess of 25% in 2020, expected to accelerate with growth initiatives

 

MINNEAPOLIS & REHOVOT, Israel--(BUSINESS WIRE) - March 1, 2021 Stratasys Ltd. (NASDAQ: SSYS) announced financial results for the fourth quarter and full year 2020.

 

Fourth Quarter 2020 Financial Results Summary Compared to Fourth Quarter 2019:

 

	●	Revenue was $142.4 million, compared to $160.2 million.

	●	GAAP gross margin was 46.4%, compared to 49.1%.

	●	Non-GAAP gross margin was 49.5%, compared to 52.4%.

	●	GAAP operating loss was $2.5 million, compared to an operating loss of $3.3 million.

	●	Non-GAAP operating income was $8.3 million, compared to $10.2 million.

	●	GAAP net income was $11.0 million, or $0.20 per diluted share, compared to a net loss of $2.8 million, or $(0.05) per diluted share.

	●	Non-GAAP net income was $7.0 million, or $0.13 per diluted share, compared to $10.0 million, or $0.18 per diluted share.

	●	Adjusted EBITDA was $14.6 million, compared to $16.6 million.

●

Generated $23.7 million of cash from operations.

 

Dr. Yoav Zeif, Chief Executive Officer of Stratasys, commenting on the results, stated, “Our results reflect the resilience and diversification of our business model. We delivered sequential revenue growth in the back half of the year and this quarter produced the highest operating cash flow in almost three years. We believe both our industry and company are starting to enter a meaningful, sustained trajectory of unprecedented growth and are excited to capitalize on the opportunities ahead.”

 

Dr. Zeif continued, “In 2020, we implemented a new strategy to be the first choice for polymer 3D printing, with a specific focus on expanding into fast-growing manufacturing applications. We rightsized the company and enhanced our operating model to be application-centric, allowing our team to better leverage synergies. Stratasys is well-positioned to grow, armed with a strong balance sheet with no debt. This year we will add three new technology platforms and will continue to prudently execute on our capital allocation strategy to meaningfully accelerate revenue, earnings and cash flow as our investments begin to contribute in the years ahead and, in turn, drive value for our shareholders.”

 

 

 

 

2020 Financial Results Summary Compared to 2019:

 

	●	Revenue for 2020 was $520.8 million compared to $636.1 million.

	●	GAAP gross margin in 2020 was 42.1%, compared to 49.3%.

	●	Non-GAAP gross margin in 2020 was 47.6%, compared to 52.3%.

	●	GAAP operating loss for 2020 was $456.0 million, primarily due to $386.2 million goodwill impairment in the third quarter, compared to $11.7 million operating loss.

	●	Non-GAAP operating loss for 2020 was $9.1 million, compared to $34.1 million operating income.

	●	Adjusted EBITDA in 2020 was $16.0 million, compared to $60.0 million.

	●	GAAP net loss for 2020 was $443.7 million, or ($8.08) per diluted share, primarily due to a $386.2 million goodwill impairment in the third quarter, compared to a loss of $10.8 million, or ($0.20) per diluted share.

	●	Non-GAAP net loss for 2020 was $13.9 million, or $(0.25) per diluted share, compared to non-GAAP net income of $30.5 million, or $0.56 per diluted share.

●

Generated $27.8 million in cash from operations in 2020 compared to $11.2 million used.

 

Financial Outlook:

 

Given the dynamic and evolving impact of the pandemic on the Company’s operations, and uncertainty around the timing and extent of an anticipated recovery, the Company is providing the following information based on its pipeline, current market and industry conditions, and previously communicated information:

 

	●	First quarter 2021 revenue is anticipated to track relatively similar to the first quarter of 2020.

	●	Second quarter 2021 revenue should approximate mid-teens percentage growth year-over-year, assuming current consumption trends and the impact of the pandemic persist.

	●	Full year operating expense is expected to increase over 2020 by approximately $25 million primarily due to the return from a four-day to a five-day work week as of January 1st, 2021, as well as the impact of recent acquisitions. Longer term, the Company expects to realize significant leverage benefits from its investments as revenue growth accelerates in 2022 and beyond.

●

Capital expenditures are anticipated to range from $24 million to $30 million.

 

Stratasys Ltd. Fourth Quarter 2020 Webcast and Conference Call Details

 

The Company plans to webcast its conference call to discuss its fourth quarter and full year 2020 financial results on Monday, March 1, 2021 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://78449.themediaframe.com/dataconf/productusers/ssys/mediaframe/43687/indexl.html.

 

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 6 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 and healthcare. 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.

 

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 2021, 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 degree of growth of the 3D printing market generally; the duration and degree of severity of, and strength of recovery from, the global COVID-19 pandemic; 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 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 changes in our management and board of directors; global market, political and economic conditions, and in the countries in which we operate in particular (including risks related to the impact of coronavirus on our supply chain and business); 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; 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, 2020 (the “2020 Annual Report”), which we expect to file with the Securities and Exchange Commission (the “SEC”) on March 1, 2021. Readers are urged to carefully review and consider the various disclosures made throughout our 2020 Annual Report 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, for the quarterly periods throughout 2021, which will be furnished to the SEC over the course of 2021, 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 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.

 

 

 

 

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 (x) on an ongoing basis after excluding mergers, acquisitions and divestments related expense or gains and reorganization-related charges or gains, and (y) 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 the corresponding tax effect of those items. 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.

 

Contact:
Yonah Lloyd
CCO / VP, Investor Relations
[email protected]

 

 

Stratasys Ltd.

Consolidated Balance Sheets

(Unaudited)

(in thousands, except share data)

 

		December 31,				December 31,
		2020				2019
ASSETS
Current assets
Cash and cash equivalents		$	272,092			$	293,484
Short-term deposits			27,000				28,300
Accounts receivable, net			106,068				132,558
Inventories			131,672				168,504
Prepaid expenses			6,717				6,567
Other current assets			16,943				29,659
Total current assets			560,492				659,072
Non-current assets
Property, plant and equipment, net			201,232				189,706
Goodwill			35,694				385,658
Other intangible assets, net			131,569				87,328
Operating lease right-of-use assets			21,298				20,936
Other non-current assets			39,717				38,819
Total non-current assets			429,510				722,447
Total assets		$	990,002			$	1,381,519
LIABILITIES AND EQUITY
Current liabilities
Accounts payable		$	16,987			$	35,818
Accrued expenses and other current liabilities			31,061				28,528
Accrued compensation and related benefits			25,659				34,013
Deferred revenues - short-term			49,165				52,268
Operating lease liabilities - short-term			9,282				9,292
Total current liabilities			132,154				159,919
Non-current liabilities
Deferred revenues - long-term			14,227				16,039
Operating lease liabilities - long term			12,567				12,445
Other non-current liabilities			71,459				35,343
Total non-current liabilities			98,253				63,827
Total liabilities			230,407				223,746
Redeemable non-controlling interests			227				622
Equity
Ordinary shares, NIS 0.01 nominal value, authorized 180,000 thousands shares; 56,617 thousands shares and 54,441 thousands shares issued and outstanding at December 31, 2020 and 2019, respectively			155				148
Additional paid-in capital			2,753,955				2,706,894
Accumulated other comprehensive loss			(8,846	)			(7,716	)
Accumulated deficit			(1,985,896	)			(1,542,175	)
Total equity			759,368				1,157,151
Total liabilities and equity		$	990,002			$	1,381,519

 

 

Stratasys Ltd.

Consolidated Statements of Operations

(in thousands, except per share data)

 

		Three Months Ended December 31,								Twelve Months Ended December 31,
		2020				2019				2020				2019
		(unaudited)				(unaudited)				(unaudited)				(unaudited)
Net sales
Products		$	99,185			$	108,968			$	339,782			$	430,746
Services			43,210				51,189				181,035				205,334
			142,395				160,157				520,817				636,080
Cost of sales
Products			44,679				46,825				171,235				182,430
Services			31,697				34,673				130,188				139,958
			76,376				81,498				301,423				322,388
Gross profit			66,019				78,659				219,394				313,692
Operating expenses
Research and development, net			18,953				24,019				84,012				94,253
Selling, general and administrative			49,595				57,921				205,224				231,138
Goodwill impairment			-				-				386,154				-
			68,548				81,940				675,390				325,391
Operating loss			(2,529	)			(3,281	)			(455,996	)			(11,699	)
Financial income (expense), net			273				1,760				(575	)			4,555
Loss before income taxes			(2,256	)			(1,521	)			(456,571	)			(7,144	)
Income tax expenses (benefit)			(14,144	)			439				(16,394	)			3,523
Share in profits (losses) of associated companies			(1,200	)			(907	)			(3,939	)			(412	)
Net income (loss)			10,688				(2,867	)			(444,116	)			(11,079	)
Net loss attributable to non-controlling interests			(341	)			(78	)			(395	)			(230	)
Net income (loss) attributable to Stratasys Ltd.		$	11,029			$	(2,789	)		$	(443,721	)		$	(10,849	)
Net income (loss) per ordinary share attributable to Stratasys Ltd.
Basic		$	0.20			$	(0.05	)		$	(8.08	)		$	(0.20	)
Diluted		$	0.20			$	(0.05	)		$	(8.08	)		$	(0.20	)
Basic			55,118				54,435				54,918				54,260
Diluted			55,318				54,435				54,918				54,260

 

 

			Three Months Ended December 31,
			2020				Non-GAAP				2020				2019				Non-GAAP				2019
			GAAP				Adjustments				Non-GAAP				GAAP				Adjustments				Non-GAAP
			U.S. dollars and shares in thousands (except per share amounts)
	Gross profit (1)		$	66,019			$	4,520			$	70,539			$	78,659			$	5,294			$	83,953
	Operating income (loss) (1,2)			(2,529	)			10,861				8,332				(3,281	)			13,436				10,155
	Net income (loss) attributable to Stratasys Ltd. (1,2,3)			11,029				(4,001	)			7,028				(2,789	)			12,741				9,952
	Net income (loss) per diluted share attributable to Stratasys Ltd. (4)		$	0.20			$	(0.07	)		$	0.13			$	(0.05	)		$	0.23			$	0.18
(1)	Acquired intangible assets amortization expense							3,411												4,770
	Non-cash stock-based compensation expense							347												478
	Restructuring and other related costs							762												46
								4,520												5,294
(2)	Acquired intangible assets amortization expense							2,290												2,985
	Non-cash stock-based compensation expense							3,962												4,325
	Restructuring and other related costs							449												556
	Other expenses (income)							(360	)											276
								6,341												8,142
								10,861												13,436
(3)	Corresponding tax effect							(1,002	)											(721	)
	Release of valuation allowance							(14,007	)											-
	Equity method related amortization, divestments and impairments							483												26
	Adjustments attributable to non-controlling interest							(336	)											-
							$	(4,001	)										$	12,741
(4)	Weighted average number of ordinary shares outstanding-Diluted			55,318								55,318				54,435								54,738

 

 

			Twelve Months Ended December 31,
			2020				Non-GAAP				2020				2019				Non-GAAP				2019
			GAAP				Adjustments				Non-GAAP				GAAP				Adjustments				Non-GAAP
			U.S. dollars and shares in thousands (except per share amounts)
	Gross profit (1)		$	219,394			$	28,582			$	247,976			$	313,692			$	19,074			$	332,766
	Operating income (loss) (1,2)			(455,996	)			446,848				(9,148	)			(11,699	)			45,812				34,113
	Net income (loss) attributable to Stratasys Ltd. (1,2,3)			(443,721	)			429,820				(13,901	)			(10,849	)			41,315				30,466
	Net income (loss) per diluted share attributable to Stratasys Ltd. (4)		$	(8.08	)		$	7.83			$	(0.25	)		$	(0.20	)		$	0.76			$	0.56
(1)	Acquired intangible assets amortization expense							15,607												16,484
	Non-cash stock-based compensation expense							1,771												1,848
	Restructuring and other related costs							5,948												742
	Impairment charges of intangible assets							5,256												-
								28,582												19,074
(2)	Acquired intangible assets amortization expense							8,720												8,673
	Non-cash stock-based compensation expense							18,433												18,716
	Goodwill impairment							386,154												-
	Gain from divestiture, net of transaction costs							-												(3,578	)
	Restructuring and other related costs							4,312												2,655
	Other expenses							647												272
								418,266												26,738
								446,848												45,812
(3)	Corresponding tax effect							(3,398	)											(2,919	)
	Release of valuation allowance							(14,007	)											-
	Equity method related amortization, divestments and impairments							713												(1,578	)
	Adjustments attributable to non-controlling interest							(336	)											-
							$	429,820											$	41,315
(4)	Weighted average number of ordinary shares outstanding-Diluted			54,918								54,918				54,260								54,713

 

 

Exhibit 99.2

 

Q4 and FY 2020 | Conference call & webcast details February 2021 Speakers Yoav Zeif – CEO Lilach Payorski – CFO Yonah Lloyd – VP Investor Relations Live dial - in information US Toll - Free dial - in: 1 - 877 - 407 - 0619 International dial - in: +1 - 412 - 902 - 1012 Live webcast and replay: [https://…….] US Toll - Free dial - in: 1 - 877 - 407 - 0619 International dial - in +1 - 412 - 902 - 1012 Live webcast and replay: https://78449.themediaframe.com/dataconf/productusers/ssys/mediaframe/43687/indexl.html Live dial - in information Conference call & webcast details

Forward - looking statements 2 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 2021, 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 degree of growth of the 3D printing market generally; the duration and degree of severity of, and strength of recovery from, the global COVID - 19 pandemic; 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 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 changes in our management and board of directors; global market, political and economic conditions, and in the countries in which we operate in particular (including risks related to the impact of coronavirus on our supply chain and business); 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; 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, 2020 (the “ 2020 Annual Report ”), which we expect to file with the Securities and Exchange Commission (the “ SEC ”) on March 1, 2021. Readers are urged to carefully review and consider the various disclosures made throughout our 2020 Annual Report 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, for the quarterly periods throughout 2021, which will be furnished to the SEC over the course of 2021, 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 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.

Use of non - GAAP financial information 3 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 (x) on an ongoing basis after excluding mergers, acquisitions and divestments related expense or gains and reorganization - related charges or gains, and (y) 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 the corresponding tax effect of those items. 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.

Agenda 1 | Annual review 2 | Financial highlights

CEO Opening Remarks 5 Unprecedented industry growth trajectory – driven by secular change Strong sequential improvement in revenue and cash flow Early phases of recovery from COVID - 19 Foundation for growth established Yoav Zeif CEO

Focused Strategy to Lead the Polymer 3D Printing Market 6 Broadest technology offering in sector Deep application engineering expertise Unmatched go - to - market infrastructure Resilient business model designed to scale Growing software partner ecosystem Five best - in - class technologies for every step in the product lifecycle – from concept through manufacturing Network of over 200 channel partners – largest and most experienced in the industry Deep application engineer expertise to educate customers and drive innovation Corporate and GTM infrastructure can absorb and scale new business with operating leverage Industry 4.0 - ready systems with API integration to leading manufacturing software applications Delivering innovative, next - generation technologies to address the fastest growing manufacturing applications

Broadest advanced technology offering in the industry 7 Engineering / Manufacturing Design / Engineering / Medical Modeling / Dental Tooling / Manufacturing / Dental Manufacturing Engineering / Tooling / Dental Proven reproducibility and dependability Powerful industrial - grade materials Detailed, multi color, multi - material realism for functional and visual models World - class accuracy and resolution for mass production Unmatched material breadth Consistent and cost - effective volume production Fast, cost - effective parts of all sizes Broad range of open materials P3 PBF SL (3 Models) FDM (14 Models) Polyjet (13 Models) Neo450s F900 J55 OriginOne Recent initiatives increase addressable market

2020 Highlights: Strong execution 8 Strategic focus Acquisition of Origin Operational improvement Financial performance Implementation of new strategy around polymers Business aligned to deliver comprehensive solutions for manufacturing applications Reconstitution of the executive team and Board Best - in - class photopolymer solution for manufacturing - oriented applications Key growth driver as we pivot to manufacturing solutions Expected to generate up to $ 200 mm revenue by 2025 Enhanced operating model to be application - centric ~$30mm annual run - rate cost savings, enabling reinvestment in higher profit areas of business 11.3% sequential Q/Q revenue growth $ 23.7mm operating cash flow – highest since Q1’18 Net cash position of approximately $300mm

Increasing our presence in manufacturing – a multi trillion dollar addressable market 9 Over 25% of 2020 revenue related directly to manufacturing applications Launch of P3, PBF planned this year / future updated FDM systems and Healthcare and Dental applications Manufacturing revenue to grow low double digits this year and 20% annually medium/long term 2.8 25.4 2015 2025 Manufacturing AM market, $b +$23b +807% 1.9 14.8 2015 2025 Prototyping AM market, $b +$13b +679% 5 6 7 10 12 15 19 24 30 38 48 60 76 95 120 149 2015 2017 2019 2021 2023 2025 2027 2029 ’20 - ’30 CAGR: +26% In $billions. Source: Stratasys market analysis drawn from Context AM3DP Printer Shipment and Forecast. Report Q2 2020, Wohlers Report 2020, IDC. Total AM market (2015 - 2030)

Technology and innovation support growth 10 Programmable PhotoPolymerization technology + 3 bn TAM across Dental, Medical, Tooling and Auto/Aero Expands manufacturing TAM across Commercial and Consumer Goods, Auto and Service Bureaus nTopology KeyShot GrabCAD Origin acquisition Xaar Joint Venture Software ecosystem RPS / Carbon Fiber Stereolithography technology expanding Dental, Medical and Design application capabilities Carbon fiber material added to F123 Series

Customers continue to express confidence in Stratasys 11 Technology leverages advanced materials for prototyping auto interiors and exteriors Antero 800NA J850 printers Jaquard Wearable Platform Delivering results to Google ATAP‘s Jacquard Wearable Platform High - temperature FDM material to be used on airplane construction First material from Stratasys qualified by Boeing for chemical resistant or fatigue requirements Automotive Consumer electronics Aerospace Jacquard Wearable Platform

Financial highlights Lilach Payorski CFO Solid H 2 sequential recovery Improved revenue, gross margins and cash generation Good signs of economic recovery

Financial results Q4 2020 13 GAAP Non - GAAP Q4 - 19 Q4 - 20 Change Y/Y Q4 - 19 Q4 - 20 Change Y/Y Total Revenue 160.2 142.4 - 11.1% 160.2 142.4 - 11.1% Gross Profit 78.7 66.0 - 12.7 84.0 70.5 - 13.5 % Margin 49.1% 46.4% - 2.7% 52.4% 49.5% - 2.9% Operating Income (Loss) - 3.3 - 2.5 0.8 10.2 8.3 - 1.9 % Margin - 2.0% - 1.8% 0.2% 6.3% 5.9% - 0.5% Net Income (Loss) attributed to SSYS Ltd. - 2.8 11.0 13.8 10.0 7.0 - 3.0 % Margin - 1.7% 7.7% 9.4% 6.2% 4.9% - 1.3% Diluted EPS - 0.05 0.20 0.25 0.18 0.13 - 0.05 Diluted Shares 54.4 55.3 1.6% 54.7 55.3 1.1% FY 2020 GAAP Non - GAAP FY - 2019 FY - 2020 Change Y/Y FY - 2019 FY - 2020 Change Y/Y Total Revenue 636.1 520.8 - 18.1% 636.1 520.8 - 18.1% Gross Profit 313.7 219.4 - 94.3 332.8 248.0 - 84.8 % Margin 49.3% 42.1% - 7.2% 52.3% 47.6% - 4.7% Operating Income (Loss) - 11.7 - 456.0¹ - 444.3 34.1 - 9.1 - 43.3 % Margin - 1.8% - 87.6% - 85.7% 5.4% - 1.8% - 7.1% Net Income (Loss) attributed to SSYS Ltd. - 10.8 - 443.7¹ - 432.9 30.5 - 13.9 - 44.4 % Margin - 1.7% - 85.2% - 83.5% 4.8% - 2.7% - 7.5% Diluted EPS - 0.20 - 8.08¹ - 7.88 0.56 - 0.25 - 0.81 Diluted Shares 54.3 54.9 1.2% 54.7 54.9 0.4% Note: $ in millions unless noted otherwise. All numbers and percentages rounded. ¹ Mainly due to goodwill impairment of $386.2.

Revenue grew 11.3% sequentially 14 Note: $ in millions unless noted otherwise. All numbers and percentages rounded. Quarterly trend 109 83.2 73.9 83.6 99.2 51.2 49.7 43.7 44.3 43.2 160.2 132.9 117.6 127.9 142.4 Q4'19 Q1'20 Q2'20 Q3'20 Q4'20 Product Service Revenue Growth – Q4’20 Revenue Y/Y Y/Y (exc. FX) Product - 9.0% - 10.7% System - 8.3% - 9.8% Consumables - 9.6% - 11.6% Service - 15.6% - 16.6% Customer Support - 3.7% - 5.6% +11.3%

Gross margin improvement trend 15 All percentages rounded. GAAP Non - GAAP 49.1% 45.0% 37.2% 38.9% 46.4% 57.0% 52.8% 45.9% 43.3% 55.0% 32.3% 32.1% 22.5% 30.6% 26.6% Q4 '19 Q1 '20 Q2 '20 Q3 '20 Q4' 20 52.4% 48.4% 45.4% 46.8% 49.5% 61.6% 57.9% 52.9% 54.9% 58.7% 32.9% 32.4% 32.7% 31.3% 28.5% Q4 '19 Q1 '20 Q2 '20 Q3 '20 Q4' 20 Total Gross Margin Product Gross Margin Service Gross Margin

Operating expenses improvement trend 16 81.9 68.5 Q4'19 Q4'20 - 16.3% 73.8 62.2 Q4'19 Q4'20 Non - GAAP Operating expenses - 15.7% GAAP Operating expenses

Operating income and net earnings 17 $ in millions unless noted otherwise. All percentages rounded. GAAP Operating income / (loss) Non - GAAP Operating income / (loss) (3.3) (2.5) Q4'19 Q4'20 10.2 8.3 Q4'19 Q4'20 GAAP Net income / (loss) Non - GAAP Net income / (loss) (2.8) 11.0 Q4'19 Q4'20 10.0 7.0 Q4'19 Q4'20

Strong balance sheet / $23.7m OCF – highest since Q1 2018 18 $ in millions unless noted otherwise. All percentages rounded. Balance sheet items Cash Flow From Operating Activities (3.4) 23.7 (11.2) 27.8 Q4' 19 Q4' 20 2019 2020 Q4 - 19 Q3 - 20 Q4 - 20 Cash and Cash Equivalents and Short term deposits 321.8 308.2 299.1 Accounts Receivable 132.6 103.7 106.1 Inventories 168.5 152.7 131.7 Net Working Capital 499.2 456.9 428.3 Highest since Q1’18

2021 Outlook 19 Building foundation for strong growth Revenue for the current quarter tracking relatively similar to Q1 2020 , despite current continued softness from key sectors like automotive and commercial aerospace, driven by the pandemic Expect 2Q revenue growth in mid teens compared to 2Q 2020 if current consumption trends continue $25M - $30M higher Operating expenses in ’21 to reflect return to full - time work and associated costs plus acquisitions - still below '19 costs Significant operating leverage from recent investments and strategic initiatives – majority of growth expected to come from manufacturing applications in 2022 and beyond

CEO Summary Additive manufacturing poised for exceptional growth 2020 internal reorganization + organic/inorganic activities position Stratasys to broaden leadership Strong momentum – well positioned for growth

Thank You: Q&A

Appendix

GAAP to Non - GAAP Reconciliation 23 Results of operations Stratasys Ltd Three months ended December 31, 2020 Three months ended December 31, 2019 GAAP Adjustments Non - GAAP GAAP Adjustments Non - GAAP Gross Profit (1) $66,019 $4,520 $70,539 $78,659 $5,294 $83,953 Operating income (Loss) (1,2) (2,529) 10,861 8,332 (3,281) 13,436 10,155 Net income (Loss) attributable to Stratasys Ltd (1,2,3) 11,028 (4,001) 7,027 (2,788) 12,741 9,953 Net income (Loss) per diluted share attributable to Stratasys Ltd (4) $0.20 ($0.07) $0.13 ($0.05) $0.23 $0.18 1) Acquired intangible assets amortization expense 3,411 4,770 Non - cash stock - based compensation expense 347 478 Restructuring and other related costs 46 4,520 5,294 2) Acquired intangible assets amortization expense 2,290 2,985 Non - cash stock - based compensation expense 3,963 4,325 Restructuring and other related costs 448 556 Other expenses (income) (360) 276 6,341 8,142 10,861 13,436 3) Corresponding tax effect (1,002) (721) Release of valuation allowance (14,007) - Equity method related amortization, divestments and impairments 483 26 Adjustment attributable to non - controlling interest (336) - ($4,001) 12,741 4) Weighted average number or ordinary shares outstanding - Diluted 55,318 55,318 54,435 54,738

---

Serious News for Serious Traders! Try StreetInsider.com Premium Free!

---

You May Also Be Interested In

• Stratasys (SSYS) Unveils Direct-to-Garment Solution
• Nationwide Insurance to Showcase How they are Driving Proactive Risk Management Using iLearningEngines’ Enterprise AI Platform at the 2024 Insurance Innovators Conference
• Two Top Rating Agencies Reaffirm Metropolitan’s Strong Credit Ratings