6-K

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 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 Results of Operations

On May 5, 2021, Stratasys Ltd. (“we” or “us”) announced our financial results for the first quarter ended March 31, 2021.  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 5, 2021 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 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.

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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 5, 2021	By:	/s/ Lilach Payorski
	Name:	Lilach Payorski
	Title:	Chief Financial Officer

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EXHIBIT INDEX

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

Exhibit	Description
99.1	Press release dated May 5, 2021 announcing the financial results of Stratasys Ltd. for the first quarter ended March 31, 2021
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 5, 2021

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EX-99.1

Exhibit 99.1

Stratasys Releases First Quarter 2021 Financial Results

● Revenue of $134.2 million

● GAAP net loss of $18.9 million, or $0.32 per diluted share, and non-GAAP net loss of $3.8 million, or $0.06 per diluted share

● Generated $22.8 million of cash from operations

● Completed growth capital raise of $230 million in gross proceeds

● $530.4 million cash and no debt at quarter end

MINNEAPOLIS & REHOVOT, Israel--(BUSINESS WIRE) - May 5, 2021 Stratasys Ltd. (NASDAQ: SSYS) announced financial results for the first quarter of 2021.

First Quarter 2021 Financial Results Summary Compared to First Quarter 2020:

● Revenue of $134.2 million compared to $132.9 million.

● GAAP gross margin was 41.4%, compared to 45.0%.

● Non-GAAP gross margin was 46.7%, compared to 48.4%.

● GAAP operating loss was $18.4 million, compared to an operating loss of $19.9 million.

● Non-GAAP operating loss was $2.6 million, compared to an operating loss of $8.4 million.

● GAAP net loss was $18.9 million, or $0.32 per diluted share, compared to a net loss of $21.7 million, or $0.40 per diluted share.

● Non-GAAP net loss was $3.8 million, or $0.06 per diluted share, compared to a net loss of $10.6 million, or $0.19 per diluted share.

● Adjusted EBITDA was $3.5 million, compared to $(2.1) million.

● Cash from operations of $22.8 million, compared to $11.3 million.

“I am pleased with our performance in the first quarter that drove 41% growth in system revenues. Thanks to our team’s dedication and successful execution, Stratasys delivered solid results and is well-positioned at the forefront of our industry, as end markets continue to recover and 3D printing industry growth accelerates,” stated Dr. Yoav Zeif, Chief Executive Officer of Stratasys.

Dr. Zeif continued, “3D printing is migrating from being primarily a prototyping tool to providing full-scale, digital manufacturing platforms at mass production levels. With our focused business model, we continue to make progress on our strategy to grow our manufacturing applications, which will solidify our position as the first choice in polymer 3D printing. We recently hosted an unprecedented online event for over 4,500 customers, resellers and partners, where we introduced three next-generation manufacturing systems that address a large portion of the multibillion-dollar market opportunity in additive manufacturing of end-use parts and will play an integral role in positioning the business for future growth. Looking to the rest of 2021, we will continue to prioritize strategic investments that we expect to yield significant returns and sustained profitability in the years to come. With a fortress balance sheet and multiple growth opportunities in front of us, we are poised to build incremental value for our shareholders,” concluded Dr. Zeif.

Financial Outlook:

The Company is reiterating and updating its outlook as follows:

● Second quarter 2021 revenue of mid-teens percentage growth year-over-year.

● Full year operating expenses expected to rise approximately $25 million to $30 million compared to 2020, likely closer to the high end of the range, primarily due to the return of employees to a full-time schedule starting January 1, 2021, as well as the impact of recent acquisitions.

● Full year capital expenditures anticipated range from $24 million to $30 million.

● Longer term, the Company continues to expect significant leverage benefit from its investments as revenue growth should accelerate in 2022 and beyond.

Stratasys Ltd. First Quarter 2021 Webcast and Conference Call Details

The Company plans to webcast its conference call to discuss its first quarter 2021 financial results on Wednesday, May 5, 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/44880/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.

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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 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 acquisitions or investments in new businesses, technologies, products or services; the strength and duration of, and degree of recovery from, the COVID-19 pandemic in the markets in which we operate; 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 the coronavirus on our supply chain and business); 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, which we filed with the U.S. Securities and Exchange Commission, or SEC, on March 1, 2021 (the “2020 Annual Report”). 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 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 throughout 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 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 and divestments related expense or gains and reorganization-related charges or gains, 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, 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 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.

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Stratasys Ltd.

Consolidated Balance Sheets

(Unaudited)

(in thousands, except share data)

	March 31,			December 31,
	2021			2020
ASSETS
Current assets
Cash and cash equivalents	$	421,398		$	272,092
Short-term deposits		109,000			27,000
Accounts receivable, net of allowance for credit losses of $0.9 million as of March 31, 2021 and December 31, 2020		102,780			106,068
Inventories		124,199			131,672
Prepaid expenses		10,345			6,717
Other current assets		16,745			16,943
Total current assets		784,467			560,492
Non-current assets
Property, plant and equipment, net		199,382			201,232
Goodwill		38,074			35,694
Other intangible assets, net		131,619			131,569
Operating lease right-of-use assets		19,089			21,298
Other non-current assets		43,299			39,717
Total non-current assets		431,463			429,510
Total assets	$	1,215,930		$	990,002
LIABILITIES AND EQUITY
Current liabilities
Accounts payable	$	28,062		$	16,987
Accrued expenses and other current liabilities		29,283			31,061
Accrued compensation and related benefits		30,937			25,659
Deferred revenues - short term		49,413			49,165
Operating lease liabilities - short term		8,941			9,282
Total current liabilities		146,636			132,154
Non-current liabilities
Deferred revenues - long term		14,074			14,227
Operating lease liabilities - long term		10,501			12,567
Contingent consideration		40,234			37,400
Other non-current liabilities		32,470			34,059
Total non-current liabilities		97,279			98,253
Total liabilities		243,915			230,407
Redeemable non-controlling interests		227			227
Equity
Ordinary shares, NIS 0.01 nominal value, authorized 180,000 thousands shares; 65,218 thousands shares and 56,617 thousands shares issued and outstanding at March 31, 2021 and December 31, 2020, respectively		181			155
Additional paid-in capital		2,984,048			2,753,955
Accumulated other comprehensive loss		(7,634	)		(8,846	)
Accumulated deficit		(2,004,807	)		(1,985,896	)
Total equity		971,788			759,368
Total liabilities and equity	$	1,215,930		$	990,002

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Stratasys Ltd.

Consolidated Statements of Operations

(in thousands, except per share data)

	Three Months Ended March 31,
	2021			2020
	(unaudited)			(unaudited)
Net sales
Products	$	90,324		$	83,172
Services		43,865			49,735
		134,189			132,907
Cost of sales
Products		46,920			39,248
Services		31,692			33,789
		78,612			73,037
Gross profit		55,577			59,870
Operating expenses
Research and development, net		20,601			24,194
Selling, general and administrative		53,334			55,576
		73,935			79,770
Operating loss		(18,358	)		(19,900	)
Financial expense, net		(377	)		(829	)
Loss before income taxes		(18,735	)		(20,729	)
Income tax expenses (benefit)		(942	)		221
Share in losses of associated companies		(1,118	)		(838	)
Net loss		(18,911	)		(21,788	)
Net loss attributable to non-controlling interests		-			(85	)
Net loss attributable to Stratasys Ltd.	$	(18,911	)	$	(21,703	)
Net loss per ordinary share attributable to Stratasys Ltd.
Basic	$	(0.32	)	$	(0.40	)
Diluted	$	(0.32	)	$	(0.40	)
Weighted average ordinary shares outstanding
Basic		58,616			54,544
Diluted		58,616			54,544

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		Three Months Ended March 31,
		2021			Non-GAAP			2021			2020			Non-GAAP			2020
		GAAP			Adjustments			Non-GAAP			GAAP			Adjustments			Non-GAAP
		U.S. dollars and shares in thousands (except per share amounts)
	Gross profit (1)	$	55,577		$	7,069		$	62,646		$	59,870		$	4,414		$	64,284
	Operating income (loss) (1,2)		(18,358	)		15,785			(2,573	)		(19,900	)		11,491			(8,409	)
	Net income (loss) attributable to Stratasys Ltd. (1,2,3)		(18,911	)		15,111			(3,800	)		(21,703	)		11,137			(10,566	)
	Net income (loss) per diluted share attributable to Stratasys Ltd. (4)	$	(0.32	)	$	0.26		$	(0.06	)	$	(0.40	)	$	0.21		$	(0.19	)
(1)	Acquired intangible assets amortization expense					5,356									4,065
	Non-cash stock-based compensation expense					634									402
	Restructuring and other related costs					1,079									(53	)
						7,069									4,414
(2)	Acquired intangible assets amortization expense					2,192									2,142
	Non-cash stock-based compensation expense					6,571									4,503
	Restructuring and other related costs					1,810									31
	Revaluation of investments					(3,670	)								-
	Contingent consideration					191									-
	Other expenses					1,622									401
						8,716									7,077
						15,785									11,491
(3)	Corresponding tax effect					(757	)								(431	)
	Equity method related amortization, divestments and impairments					83									77
					$	15,111								$	11,137
(4)	Weighted average number of ordinary shares outstanding- Diluted		58,616						58,616			54,544						54,544

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EX-99.2

Exhibit 99.2