Stratasys, Ltd.

Hello, and welcome to the Stratasys Q2 2022 conference call and webcast. At this time, all participants are in listen-only mode. A question and answer session will follow the formal presentation. We ask you to please ask one question and one follow-up, then return to the queue. If anyone should require operator assistance, please press star zero on your telephone keypad. As a reminder, this conference is being recorded. It's now my pleasure to turn the call over to Yona Lloyd, CCO, and Vice President, Investor Relations. Yonah, please go ahead, sir.

Good morning, everyone, and thank you for joining us to discuss our 2022 second quarter financial results. On the call with us today are our CEO, Dr. Yoav Zaif, and our CFO, Eitan Zamir. I would like to remind you that access to today's call, including the slide presentation, is available online at the web address provided in our press release. In addition, a replay of today's call, including access to the slide presentation, will also be available and can be accessed through the investor relations section of our website. Please note that some of the information you will hear during our discussion today will consist of forward-looking statements, including, without limitation, those regarding our expectations as to our future revenue, gross margin, operating expenses, taxes, and other future financial performance, and our expectations for our business outlook. All statements that speak to future performance, events, expectations, or results are forward-looking statements. Actual results or trends could differ materially from our forecast. For risks that could cause actual results to be materially different from those set forth in forward-looking statements, please refer to the risk factors discussed or referenced in Stratasys' annual report on Form 20F for the 2021 year. Please also refer to our operating and financial review and prospects for the 2021 year. and for the second quarter of 2022, which are included as item five of that annual report and in exhibit 99.2 to the report on Form 6-K that we are furnishing to the SEC today, respectively. Please also see the press release that announces our earnings for the second quarter of 2022, which is attached as exhibit 99.1 to a separate report on Form 6-K that we are furnishing to the SEC today. In order to obtain updated information throughout the year concerning our quarterly results of operations, and the risks and other factors that most impact those results, please see the quarterly earnings press releases and our quarterly operating and financial review and prospects, each of which will be attached as an exhibit to a report on Form 6-K that we will furnish to the SEC on a quarterly basis over the course of the year. Stratasys assumes no obligation to update any forward-looking statements or information which speak as of their respective dates. As in previous quarters, today's call will include GAAP and non-GAAP financial measures. The non-GAAP financial measures should be read in combination with our GAAP metrics to evaluate our performance. Non-GAAP to GAAP reconciliations are provided in tables in our slide presentation and today's press release. I will now turn the call over to our Chief Executive Officer, Dr. Yoav Zaif. Yoav?

Thank you, Your Honor. Good morning, everyone, and thank you for joining us. Our second quarter results reflect a continuation of our ongoing business momentum. I am proud of the strategy team. As we delivered our strongest second quarter in four years, revenues of $166.6 million were up 13.3% versus the prior year quarter, 16.4% taking FX into account. and ahead sequentially over first quarter these metrics are aligned with our prior outlook we saw particular trend in system revenues which grew by over 29 percent compared to the second quarter of 2021 with year-over-year growth across all printer technologies importantly our balance sheet has us well positioned with 441.5 million of cash and equivalents and no debt. We are operating in an environment of supply chain constraints, global economic uncertainty around inflation, raising interest rates and slowing GDP. As we face these challenges, our ongoing laser focus on execution of the business plan continues to help us deliver positive financial results and drive progress towards our stated goal of growing our leadership position in polymer additive manufacturing. The first half of 2022 saw us advance our strategy on several fronts. We continue expanding our penetration into applications for aerospace, automotive, healthcare, and fashion. We tailored industry-specific solutions for customers like PepsiCo, Toyota, and Rady Children's Hospital in San Diego. As noted on our last call, we have launched two new composite-ready 3D printers in Q2, along with the new tech-style printer for the fashion industry. In addition, we launched GrabCat software on the origin line of 3D printers and introduced a broad array of new materials. This breadth of manufacturing expertise is leading to new business opportunities. We recently made two exciting announcements in the auto racing industry. Specifically, Stratasys was named a NASCAR Competitive Partner, where we are teaming with NASCAR to provide the first ever 3D printed parts to be used on all of their next generation cars. Those parts utilize Stratasys high-yield PA11 material derived from sustainable sources and are manufactured at Stratasys Direct using our H350 3D printer. Other parts are produced by NASCAR on our Focus 450 MC system. We also became the official 3D printing partner of Toyota Racing Development. Our 3D printed parts will be used in the Toyota GR86 vehicle for competition in 2023. Stratasys F370 and the new F370CR system are expected to be utilized as part of this partnership. And similar to the NASCAR relationship, Toyota Racing Development will also utilize Stratasys Direct to print PA11 parts on the H350. Auto racing is an excellent development proving ground that can ultimately lead to mainstream production runs for millions of consumer and commercial vehicles. We have demonstrated the suitability of the H350 using our SAP technology for producing a wide variety of automotive parts. This can include DACs, front grids, side mirrors, electric cables, and electrical connectors, among many others. As we execute our materials ecosystem strategy, we will be opening up even more automotive use cases. We are seeing similar momentum in other areas. In dental, we continue to see strength in the J5 dental jet line that we launched last year. In Q2, we released an updated version that doubles the throughput without sacrificing quality, makes improvements in resin consumption, reduces support usage and waste, and increases the number of parts the customer can place on the print rate. And on the medical side, in early July, we released radiometrics for our digital anatomy printer, which uniquely lets healthcare professionals and medical device companies visualize 3D printed models under x-rays and CT scans in unique ways. This attention to the need of healthcare professionals is helping us grow our presence in the market. For instance, we recently shared how the University Hospital of Southern Denmark went from a single-material XLA printer to our multi-material, full-color J5 MediJet printer. And now the surgeons are saying they no longer want to do surgical procedures without 3D printed guides. I'd also like to update you that we are progressing on the merger of MakerBot with Ultimaker and we expect it to close during the third quarter. As we previously announced, once the transaction closes, we will hold approximately 45.6% of the combined company post-merger and will account for the combined company via the equity method, rather than by consolidating it within our own results. This change is not expected to have a material impact on our consolidated revenues. I will now turn the call over to our CFO, Eitan Zamil, to share the financial results and update our outlook for the rest of 2022. Eitan?