- First quarter revenue of $163.4 million, 22% growth over
first quarter 2021, highest first quarter revenue in six
years
- First quarter GAAP net loss of $20.9 million, or $0.32 per
diluted share, and non-GAAP net income of $1.2 million, or $0.02
per diluted share
- $475.6 million cash and equivalents and no debt as of March
31, 2022
Stratasys Ltd. (Nasdaq: SSYS), a leader in polymer 3D printing
solutions, today announced financial results for the first quarter
of 2022.
Summary - First Quarter 2022 Financial Results Compared to
First Quarter 2021:
- Revenue of $163.4 million, compared to $134.2 million.
- GAAP gross margin of 42.6%, compared to 41.4%.
- Non-GAAP gross margin of 47.3%, compared to 46.7%.
- GAAP operating loss of $19.6 million, compared to a GAAP
operating loss of $18.4 million.
- Non-GAAP operating income of $2.0 million, compared to non-GAAP
operating loss of $2.6 million.
- GAAP net loss of $20.9 million, or $0.32 per diluted share,
compared to net loss of $18.9 million, or $0.32 per diluted
share.
- Non-GAAP net income of $1.2 million, or $0.02 per diluted
share, compared to non-GAAP net loss of $3.8 million, or $0.06 per
diluted share.
- Adjusted EBITDA of $8.1 million, compared to $3.5 million.
- $16.1 million of cash used by, compared to $22.8 million of
cash generated from, operating activities, reflecting more
inventory purchasing and increase in accounts receivable.
Dr. Yoav Zeif, Stratasys’ Chief Executive Officer, stated, “Our
strong start to the year, with our highest first quarter revenue
total in six years, was anchored by 22% revenue growth that
included improved contributions from all our technologies.
Importantly, systems was the main driver, up 36.7% for its
strongest first quarter in five years, and 16.4% higher than the
same period in pre-COVID 2019. We also achieved exceptional results
in both consumables and services, driven by strength in our growing
install base. And we are particularly excited by the early momentum
and contributions from our new Origin P3, H350 SAF and Neo systems,
designed for high-volume production of end-use parts.”
Dr. Zeif continued, “We have advanced a number of strategic
initiatives thus far in 2022, including the announced MakerBot
business combination with Ultimaker, the publishing of our
inaugural ESG Sustainability Report, and our annual flagship
manufacturing event where we showcased new offerings in materials,
upgrades to existing printing platforms, and an expansion of our
software capabilities. We are relentless about our focus on
execution in our drive to grow our leadership position in polymer
3D printing. With our combination of best-in-class talent, systems
offerings, Go-to-Market and support infrastructure, combined with a
robust balance sheet, Stratasys is positioned to build on our first
quarter growth across the balance of 2022 and beyond.”
Financial Outlook:
Based on current market conditions and assuming that the impact
of the COVID-19 pandemic or global supply chain costs do not impede
economic activity further, the Company is tightening its revenue
guidance range for 2022:
- Full year revenue of $685 million to $695 million.
- Sequential quarterly revenue growth.
- Second quarter revenue growth expected to reach low to
mid-teens as a percentage over second quarter of 2021.
- Based on current logistics and materials costs, full-year gross
margins of flat to slightly higher than in 2021, with improved
year-over-year growth in the second half of 2022.
- Full year-operating expenses that are $20 million to $25
million higher than 2021, primarily due to ongoing investments in
new products to drive higher revenue.
- Full year non-GAAP operating margins slightly above 2%.
- GAAP net loss of $74 million to $67 million, or ($1.11) to
($1.00) per diluted share.
- Non-GAAP net income of $10 million to $13 million, or $0.14 to
$0.19 per diluted share.
- Adjusted EBITDA of $38 million to $41 million.
- Capital expenditures of $20 million to $25 million.
Non-GAAP earnings guidance excludes $37 million to $38 million
of projected amortization of intangible assets, $31 million to $33
million of share-based compensation expense, and reorganization and
other expenses of $14 million to $15 million. Non-GAAP guidance
includes tax adjustments of $2 million to $1 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 2022 Webcast and Conference Call
Details
The Company plans to webcast its conference call to discuss its
first quarter 2022 financial results on Monday, May 16, 2022, at
4:30 p.m. (ET).
The investor conference call will be available via live webcast
on the Stratasys website at investors.stratasys.com, or directly at
the following web address:
https://services.choruscall.com/mediaframe/webcast.html?webcastid=QiDdBAQK
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 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 Stratasys’ projected future
financial performance, including the financial guidance concerning
its expected results for 2022 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 degree
of our success at locating and acquiring additional
value-enhancing, inorganic technology that furthers our business
plan to lead in the realm of polymers; the potential adverse impact
that recent global interruptions and delays involving freight
carriers and other third parties may have on our supply chain and
distribution network, and, consequently, our ability to
successfully sell both our existing and newly-launched 3D printing
products; the strength and duration of, and degree of recovery from
and resilience to, the COVID-19 pandemic and/or adverse
macro-economic trends that are, in part, by-products of that
pandemic, such as inflation, which may have significant
consequences for our operations, financial position, cash flows,
and those of our customers and suppliers going forward; 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); 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, 2021, which we filed with the U.S. Securities and
Exchange Commission, or SEC, on February 24, 2022 (the “2021
Annual Report”). Readers are urged to carefully review and
consider the various disclosures made throughout our 2021 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 2022,
which will be furnished to the SEC throughout 2022, 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, 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. 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.
Stratasys Ltd. Consolidated Balance Sheets
(Unaudited) (in thousands, except share data)
March 31,
December 31,
2022
2021
ASSETS
Current assets Cash and cash
equivalents
$
293,649
$
243,179
Short-term deposits
182,000
259,000
Accounts receivable, net of allowance for credit losses of $0.7
million and $0.5 million as of March 31, 2022 and December 31, 2021
136,444
129,382
Inventories
143,116
129,147
Prepaid expenses
8,477
6,871
Other current assets
24,185
33,123
Total current assets
787,871
800,702
Non-current assets
Property, plant and equipment, net
200,627
203,295
Goodwill
65,089
65,144
Other intangible assets, net
143,317
152,244
Operating lease right-of-use assets
14,162
14,651
Long-term investments
28,667
28,667
Other non-current assets
16,651
12,519
Total non-current assets
468,513
476,520
Total assets
$
1,256,384
$
1,277,222
LIABILITIES AND EQUITY
Current liabilities
Accounts payable
$
59,010
$
51,976
Accrued expenses and other current liabilities
44,198
55,358
Accrued compensation and related benefits
38,341
44,684
Deferred revenues - short term
52,337
51,174
Operating lease liabilities - short term
7,158
7,276
Total current liabilities
201,044
210,468
Non-current liabilities
Deferred revenues - long term
22,026
21,133
Deferred income taxes - long term
6,258
7,341
Operating lease liabilities - long term
7,220
7,693
Contingent consideration
53,648
53,478
Other non-current liabilities
23,487
21,095
Total non-current liabilities
112,639
110,740
Total liabilities
313,683
321,208
Equity Ordinary shares,
NIS 0.01 nominal value, authorized 180,000 thousands
shares; 66,408 thousands shares and 65,667 thousands shares issued
and outstanding at March 31, 2022 and December 31,
2021, respectively
185
182
Additional paid-in capital
3,021,166
3,012,481
Accumulated other comprehensive loss
(9,824
)
(8,771
)
Accumulated deficit
(2,068,826
)
(2,047,878
)
942,701
956,014
Total liabilities and equity
$
1,256,384
$
1,277,222
Stratasys Ltd. Consolidated Statements of Operations
(in thousands, except per share data)
Three Months Ended March
31,
2022
2021
(unaudited)
(unaudited)
Net sales Products
$
113,073
$
90,324
Services
50,356
43,865
163,429
134,189
Cost of sales Products
59,373
46,920
Services
34,379
31,692
93,752
78,612
Gross profit
69,677
55,577
Operating expenses
Research and development, net
23,998
20,601
Selling, general and administrative
65,263
53,334
89,261
73,935
Operating loss
(19,584
)
(18,358
)
Financial expense, net
(1,362
)
(377
)
Loss before income taxes
(20,946
)
(18,735
)
Income tax benefit
73
942
Share in losses of associated companies
(75
)
(1,118
)
Net loss
$
(20,948
)
$
(18,911
)
Net loss per share Basic
$
(0.32
)
$
(0.32
)
Diluted
$
(0.32
)
$
(0.32
)
Weighted average ordinary shares
outstanding Basic
65,721
58,616
Diluted
65,721
58,616
Three Months Ended March
31,
2022
Non-GAAP
2022
2021
Non-GAAP
2021
GAAP
Adjustments
Non-GAAP
GAAP
Adjustments
Non-GAAP
U.S. dollars and shares in
thousands (except per share amounts)
Gross profit (1)
$
69,677
$
7,689
$
77,366
$
55,577
$
7,069
$
62,646
Operating income (loss) (1,2)
(19,584
)
21,607
2,023
(18,358
)
15,785
$
(2,573
)
Net income (loss) attributable to Stratasys Ltd. (1,2,3)
(20,948
)
22,158
1,210
(18,911
)
15,111
$
(3,800
)
Net income (loss) per diluted share attributable to Stratasys Ltd.
(4)
$
(0.32
)
$
0.34
$
0.02
$
(0.32
)
$
0.26
$
(0.06
)
(1)
Acquired intangible assets amortization expense
6,966
5,356
Non-cash stock-based compensation expense
900
634
Restructuring and other related costs
(177
)
1,079
7,689
7,069
(2)
Acquired intangible assets amortization expense
2,225
2,192
Non-cash stock-based compensation expense
7,633
6,571
Restructuring and other related costs
555
1,810
Revaluation of investments
1,061
(3,670
)
Contingent consideration
207
191
Other expenses
2,237
1,622
13,918
8,716
21,607
15,785
(3)
Corresponding tax effect and other expenses
551
(674
)
$
22,158
$
15,111
(4)
Weighted average number of ordinary shares outstanding- Diluted
65,721
67,060
58,616
58,616
View source
version on businesswire.com: https://www.businesswire.com/news/home/20220516005369/en/
Yonah Lloyd CCO, VP Investor Relations
Yonah.Lloyd@stratasys.com
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