SSYS Stratasys Ltd

 

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 May 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 Results of Operations

 

On May 29, 2024, Stratasys Ltd. (“Stratasys”, “we” or “us”) announced our financial results for the first quarter ended March 31, 2024.  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 May 29, 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 May 29, 2024 announcing the financial results of Stratasys Ltd. for the first quarter ended March 31, 2024
99.2		Slide presentation providing supplemental information to be referenced on the conference call of Stratasys Ltd. discussing its quarterly financial results, being held on May 29, 2024

 

 

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: May 29, 2024	By:	/s/ Eitan Zamir
	Name:	Eitan Zamir
	Title:	Chief Financial Officer

 

 

2

Exhibit 99.1

 

 

Stratasys Releases First Quarter 2024 Financial Results

 

●

Revenue of $144.1 million, flat year over year excluding the impact of divestitures

 

●

Record recurring consumables revenue reflects continued strong printer utilization

 

●

GAAP net loss of $26.0 million, or $0.37 per diluted share, and non-GAAP net loss of $1.7 million, or $0.02 per diluted share

 

●

$7.3 million in cash generated from operations and positive free cash flow of $4.3 million

 

●

Strong F3300 pipeline ahead of expectations

 

●

Reiterates 2024 outlook

 

MINNEAPOLIS & REHOVOT, Israel - (BUSINESS WIRE) - May 29, 2024 - Stratasys Ltd. (Nasdaq: SSYS) (“Stratasys” or the “Company”), a leader in polymer 3D printing solutions, today announced financial results for the first quarter 2024.

 

First Quarter 2024 Financial Results Compared to First Quarter 2023:

 

●

Revenue of $144.1 million compared to $149.4 million.

 

●

GAAP gross margin of 44.4%, compared to 43.8%.

 

●

Non-GAAP gross margin of 48.6%, compared to 47.3%.

 

●

GAAP operating loss of $24.5 million, compared to an operating loss of $16.8 million.

 

●

Non-GAAP operating loss of $1.2 million, compared to non-GAAP operating income of $1.5 million.

 

●

GAAP net loss of $26.0 million, or $0.37 per diluted share, compared to a net loss of $22.2 million, or $0.33 per diluted share.

 

●

Non-GAAP net loss of $1.7 million, or $0.02 per diluted share, compared to non-GAAP net income of $1.1 million, or $0.02 per diluted share.

 

●

Adjusted EBITDA of $4.1 million, compared to $7.0 million.

 

●

Cash generated by operating activities of $7.3 million, compared to cash used by operating activities of $17.9 million in the year-ago quarter.

 

Dr. Yoav Zeif, Stratasys’ Chief Executive Officer, stated, “We delivered solid first quarter operating and financial results that included record consumables revenues, improved gross margins and positive operating and free cash flow, despite the ongoing challenges posed by our customers’ capital spending constraints. We continue to see increased traction for our newest technology, the F3300 FDM system, as leading companies such as Nissan, BAE Systems and Sikorsky have joined Toyota as early customers that will benefit with faster, lower-cost manufacturing of end-use parts.”

 

Dr. Zeif continued, “Our healthy balance sheet, and financial and operating discipline, provide stability to weather the current environment. And when the macro environment eases and capital spending returns to normal levels, our differentiated portfolio and leading go-to-market strength position us to meaningfully accelerate profitable growth, driving long-term shareholder returns.”

 

 

 

2024 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 reiterating its outlook for 2024 as follows:

 

●

Full-year revenue of $630 million to $645 million.

 

o

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

 

●

Full-year non-GAAP gross margins of 49.0% to 49.5%, improving sequentially throughout the year.

 

●

Full-year operating expenses in the 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.

 

o

Includes one-time extraordinary costs associated with Stratasys’ strategic alternatives process.

 

●

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 share-based compensation expense, $26 million to $28 million of projected amortization of intangible assets, 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 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. First Quarter 2024 Webcast and Conference Call Details

 

The Company plans to webcast its conference call to discuss its first quarter 2024 financial results on Wednesday, May 29, 2024, at 5:00 p.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=H13Rjkjs

 

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.

 

 

 

To learn more about Stratasys, visit www.stratasys.com, the Stratasys blog, X.com (formerly 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 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 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; 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 global macro-economic environment, including headwinds caused by inflation, relatively high interest rates, unfavorable currency exchange rates and other growth-inhibiting conditions; 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; 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 filed with the U.S. Securities and Exchange Commission, or SEC, on March 11, 2024 (the “2023 Annual Report”). Readers are urged to carefully review and consider the various disclosures made throughout our 2023 Annual Report and the Report of Foreign Private Issuer on Form 6-K that attaches Stratasys’ unaudited, condensed consolidated financial statements and its review of its results of operations and financial condition, for the quarterly period ended March 31, 2024, which will be furnished to the SEC on or about May 30, 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.

 

 

 

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, divestments and strategic process-related expense or gains and reorganization-related charges or gains, and legal provisions and (ii) excluding non-cash items such as share-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. 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 view of our performance that is comparable to those of 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.

 

 

Stratasys Ltd.

 

Consolidated Balance Sheets (Unaudited)

(in thousands, except share data)        

 

		March 31,				December 31,
		2024				2023
ASSETS
Current assets
Cash and cash equivalents		$	91,089			$	82,585
Short-term bank deposits			70,000				80,000
Accounts receivable, net of allowance for credit losses of $1,455 and $1,449 as of March 31, 2024 and December 31, 2023, respectively			155,349				172,009
Inventories			195,060				192,976
Prepaid expenses			9,507				7,929
Other current assets			21,090				24,596
Total current assets			542,095				560,095
Non-current assets
Property, plant and equipment, net			189,942				197,552
Goodwill			99,121				100,051
Other intangible assets, net			121,195				127,781
Operating lease right-of-use assets			17,577				18,895
Long-term investments			116,285				115,083
Other non-current assets			13,820				14,448
Total non-current assets			557,940				573,810
Total assets		$	1,100,035			$	1,133,905
LIABILITIES AND EQUITY
Current liabilities
Accounts payable		$	37,806			$	46,785
Accrued expenses and other current liabilities			32,620				36,656
Accrued compensation and related benefits			37,402				33,877
Deferred revenues - short-term			54,480				52,610
Operating lease liabilities - short-term			5,898				6,498
Total current liabilities			168,206				176,426
Non-current liabilities
Deferred revenues - long-term			19,193				23,655
Deferred income taxes - long-term			537				723
Operating lease liabilities - long-term			11,392				12,162
Contingent consideration - long-term			11,569				11,900
Other non-current liabilities			22,988				24,200
Total non-current liabilities			65,679				72,640
Total liabilities			233,885				249,066
Equity
Ordinary shares, NIS 0.01 nominal value, authorized 180,000 shares; 70,440 shares and 69,656 shares issued and outstanding at March 31, 2024 and December 31, 2023, respectively			197				195
Additional paid-in capital			3,100,445				3,091,649
Accumulated other comprehensive loss			(8,583	)			(7,079	)
Accumulated deficit			(2,225,909	)			(2,199,926	)
Total Equity			866,150				884,839
Total liabilities and equity		$	1,100,035			$	1,133,905

 

 

Stratasys Ltd.

Consolidated Statements of Operations

(in thousands, except per share data)

 

		Three Months Ended March 31,
		2024				2023
		unaudited				unaudited
Revenues
Products		$	99,196			$	100,971
Services			44,854				48,406
			144,050				149,377
Cost of revenues
Products			49,757				51,113
Services			30,396				32,869
			80,153				83,982
Gross profit			63,897				65,395
Operating expenses
Research and development, net			23,977				21,475
Selling, general and administrative			64,373				60,717
			88,350				82,192
Operating income (loss)			(24,453	)			(16,797	)
Financial income, net			1,217				773
Income (loss) before income taxes			(23,236	)			(16,024	)
Income tax expense			(716	)			(3,775	)
Share in losses of associated companies			(2,031	)			(2,425	)
Net loss		$	(25,983	)		$	(22,224	)
Net loss per share
Basic		$	(0.37	)		$	(0.33	)
Diluted		$	(0.37	)		$	(0.33	)
Weighted average ordinary shares outstanding
Basic			69,993				67,583
Diluted			69,993				67,583

 

 

				Three Months Ended March 31,
				2024				Non-GAAP				2024				2023				Non-GAAP				2023
				GAAP				Adjustments				Non-GAAP				GAAP				Adjustments				Non-GAAP
				U.S. dollars and shares in thousands (except per share amounts)
		Gross profit (1)		$	63,897			$	6,139			$	70,036			$	65,395			$	5,299			$	70,694
		Operating income (loss) (1,2)			(24,453	)			23,254				(1,199	)			(16,797	)			18,315				1,518
		Net income (loss) (1,2,3)			(25,983	)			24,299				(1,684	)			(22,224	)			23,306				1,082
		Net income (loss) per diluted share (4)		$	(0.37	)		$	0.35			$	(0.02	)		$	(0.33	)		$	0.35			$	0.02
(1)		Acquired intangible assets amortization expense							5,084												4,001
		Non-cash stock-based compensation expense							952												932
		Restructuring and other related costs							103												366
									6,139												5,299
(2)		Acquired intangible assets amortization expense							2,459												2,194
		Non-cash stock-based compensation expense							7,697												7,308
		Restructuring and other related costs							920												1,798
		Revaluation of investments							1,900												580
		Contingent consideration							511												265
		Legal, consulting and other expenses							3,628												871
									17,115												13,016
									23,254												18,315
(3)		Corresponding tax effect and other expenses							234												3,038
		Equity method related amortization							964												1,490
		Finance (income) expenses							(153	)											463
								$	24,299											$	23,306
(4)		Weighted average number of ordinary shares outstanding - Diluted			69,993								69,993				67,583								68,080

 

 

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

 

 

Exhibit 99.2

 

Make additive work for you Q1 2024 Results Speakers Dr. Yoav Zeif, CEO Eitan Zamir, CFO Yonah Lloyd, CCO & VP IR May 29 , 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=H 13 Rjkjs 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, filed with the SEC on March 11, 2024 (the “2023 Annual Report”). Readers are urged to carefully review and consider the various disclosures made throughout our 2023 Annual Report and the Report 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 quarter ended March 31, 2024, which Stratasys will furnish to the SEC on or about May 30, 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, divestments and strategic process - 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 ▪ Revenue flat relative to Q1 2023 after backing out divestitures ▪ Improved Gross Margins of 48.6% vs. 47.3% in Q1 2023 ▪ Highest - ever Consumables recurring revenue reflects strong usage, demonstrates impact of revenue stream ▪ Generated $7M+ in operating cash flow + FCF positive ▪ Financial discipline strong differentiator in our sector ▪ Healthy balance sheet provides stability and optionality to support our growth ▪ As capital spending normalizes, our differentiated, industry - leading solutions position us to meaningfully accelerate growth and drive shareholder returns Make additive work for you

H350 launched v.1.5 New SAF HighDef printing capabilities provides additional applications and use cases for a growing set of manufacturing sectors, without compromising speed or quality F3300 establishes a new FDM standard for industrial MFG with up to 2X throughput of standard FDM Strong customer pipeline Toyota - first customer BAE Systems – Europe’s largest defense contractor to drive production improvements Sikorsky - world leader in vertical flight seeks faster, cost - effective production of end - use parts Nissan – F3300 replacing 3DP competitor for multiple use cases Industrial Manufacturing Systems Update – F3300 and H350 Make additive work for you

Published 2 nd ESG and Sustainability report Sustainability is at the heart of what 3D Printing can mean for the world, and of who we are at Stratasys Proud to lead our industry on this front, and invite you to review the report Leading the shift to Mindful Manufacturing Promotion of our new COO, Amir Kleiner – 12+ years at Stratasys Will lead Global Operations, MIS, and Quality team, while continuing to manage the Customer Success team Strengthening the connection between the Customer Success organization and the Operations and Supply Chain divisions. Recent Events – New COO / Second Sustainability Report FBFFFFFFÏB FBFFFFFFÏB Make additive work for you

CFO Eitan Zamir ▪ Encouraged by multiple improvements relative to Q1 2023 ▪ Despite relatively flat revenues, gross margins improved, thanks in part to another record - level in sales of our consumables ▪ Generated over $7 million in operating cash and over $4 million in free cash flow Make additive work for you

Note: $ in millions unless noted otherwise. All numbers and percentages rounded Financial Results Make additive work for you Q1-23 Q1-24 Change Y/Y Q1-23 Q1-24 Change Y/Y Total Revenue 149.4 144.1 -3.5% 149.4 144.1 -3.5% Gross Profit 65.4 63.9 (1.5) 70.7 70.0 (0.7) ▪ % Margin 43.8% 44.4% 0.6% 47.3% 48.6% 1.3% Operating Income (Loss) (16.8) (24.5) (7.7) 1.5 (1.2) (2.7) ▪ % Margin -11.2% -17.0% -5.8% 1.0% -0.8% -1.8% Net Income (Loss) (22.2) (26.0) (3.8) 1.1 (1.7) (2.8) ▪ % Margin -14.9% -18.0% -3.1% 0.7% -1.2% -1.9% Diluted EPS (0.33) (0.37) (0.04) 0.02 (0.02) (0.04) Diluted Shares 67.6 70.0 3.6% 68.1 70.0 2.8% GAAP Non-GAAP

Revenues – Q 1 ’ 2 * Adjusted for divestments Quarterly Trend 101.0 109.1 113.2 110.4 99.2 48.4 50.7 48.9 45.9 44.9 149.4 159.8 162.1 156.3 144.1 Q1' 23 Q2'23 Q3'23 Q4'23 Q1'24 Product Service Note: $ in millions unless noted otherwise. All numbers and percentages rounded Revenue Y/Y Y/Y Adjusted* Product - $99.2M -1.8% -0.9% ▪ Systems - $32.9M -18.7% -17.8% ▪ Consumables - $66.3M 9.6% 10.3% Services - $44.9M -7.3% 1.8% ▪ Customer Support - $31.2M 3.3% 3.3% Make additive work for you Revenues – Record Consumables Sales

GAAP Non - GAAP 49.4 % 47.2% 47.4 % 47.2% 49.8% 32.1 % 29.0% 24.4% 38.4 % 32.2% 43.8 % 41.5% 40.5% 44.7 % 44.4% Q1 '23 Q2 '23 Q3 '23 Q4 '23 Q1 '24 47.3% 48.5 % 48.3% 48.8 % 48.6% 53.8% 52.3 % 52.5% 52.6% 55.5 % 33.8% 40.4 % 38.4% 39.8% 33.4 % Q1 '23 Q2 '23 Q3 '23 Q4 '23 Q1-24 Service Gross Margin Product Gross Margin Total Gross Margin All percentages rounded Gross margins expected to further improve with revenue growth Gross Margins Make additive work for you

Operating Expenses GAAP operating expenses (absolute and as a percentage of revenues) Non - GAAP operating expenses (absolute and as a percentage of revenues) 82.2 88.4 Q1'23 Q1'24 61.3% 69.2 71.2 Q1'23 Q1'24 49.5% Note: $ in millions unless noted otherwise. All numbers and percentages rounded 55.0% 46.3 % Make additive work for you

(22.2) (26.0) ( 16.8 ) (24.5) Non - GAAP operating income (loss) ( 1.0 % in Q 1 ’ 23 vs ( 0.8 )% in Q 1 ’ 24 out of total revenue) GAAP operating loss Non - GAAP net income (loss) GAAP net loss Note: $ in millions unless noted otherwise. All numbers and percentages rounded Q1’23 Q 1 ’ 24 4.1 7.0 (1.7) Non - GAAP EBITDA ( 4.7 % in Q 1 ’ 23 vs 2.9 % in Q 1 ’ 24 out of total revenue) 1.5 (1.2) 1.1 Q 1 ’ 23 Q1’24 Q 1 ’ 23 Q1’24 Q 1 ’ 23 Q1’24 Q1’23 Q1’24 Make additive work for you Earnings

Balance sheet items Cash flow from operating activities 14 Note: $ in millions unless noted otherwise. All numbers and percentages rounded (17.9) 7.3 Q1'23 Q1'24 ( 75.4 ) (62.3) Make additive work for you Balance Sheet and Positive Operating Cash Flow Q1-23 Q4-23 Q1-24 Cash and Cash Equivalents and Short-term deposits 287.6 162.6 161.1 Accounts Receivable 144.5 172.0 155.3 Inventories 202.0 193.0 195.1 Net Working Capital 462.9 383.3 373.9

Revenue Compare to ~$616M 2023 revenue excluding divestitures and annualizing Covestro Gross Margins Non - GAAP Operating Expenses Non - GAAP Operating Margins EPS - diluted - adjusted ($ 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 $ 20 M - $ 25 M $40M - $45M Make additive work for you 2024 Outlook Reiterated

CEO Dr. Yoav Zeif Summary ▪ Solid quarter in a challenging environment ▪ Past systems sales strength flows through to record consumables ▪ Heavy utilization will drive replacement by higher performance, more advanced systems ▪ Investments in innovation will meet customer needs and drive growth when the spending cycle turns ▪ Laser focused commitment to deliver differentiated products and solutions across a wide array of use cases ▪ Relentless focus on execution setting the stage to drive relative outperformance and enhance shareholder value Make additive work for you

THANK YOU. Make additive work for you

Appendix Note: $ in thousands unless noted otherwise. All numbers and percentages rounded GAAP Adjustments Non-GAAP GAAP Adjustments Non-GAAP Gross Profit (1) $ 63,897 $ 6,139 $ 70,036 $ 65,395 $ 5,299 $ 70,694 Operating income (Loss) (1,2) (24,453) 23,254 (1,199) (16,797) 18,315 1,518 Net income (Loss) (1,2,3) (25,983) 24,299 (1,684) (22,224) 23,306 1,082 Net income (Loss) per diluted share (4) $ (0.37) $ 0.35 $ (0.02) $ (0.33) $ 0.35 $ 0.02 1) Acquired intangible assets amortization expense 5,084 4,001 Non-cash stock-based compensation expense 952 932 Restructuring and other related costs 103 366 6,139 5,299 2) Acquired intangible assets amortization expense 2,459 2,194 Non-cash stock-based compensation expense 7,697 7,308 Restructuring and other related costs 920 1,798 Revaluation of investment 1,900 580 Contingent consideration 511 265 Legal, consulting and other expenses 3,628 871 17,115 13,016 23,254 18,315 3) Corresponding tax effect 234 3,038 Equity method related amortization 964 1,490 Finance (income) expenses (153) 463 $ 24,299 $ 23,306 4) Weighted average number or ordinary shares outstanding – Diluted 69,993 69,993 67,583 68,080 Three months ended March 31, 2024 Three months ended March 31, 2023

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