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 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 and Annual Results of Operations
On March 7, 2024, Stratasys Ltd. (“we”
or “us”) announced our financial results for the fourth quarter and fiscal year ended December 31, 2023. 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 7, 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:
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 7, 2024 |
By: |
/s/ Eitan Zamir |
| |
Name: |
Eitan Zamir |
| |
Title: |
Chief Financial Officer |
2
Exhibit 99.1
Stratasys Releases Fourth Quarter and Full Year
2023 Financial Results
| ● | Fourth quarter revenue of $156.3 million, 1.3% higher than the fourth quarter 2022 excluding divestitures, and 1.9% lower than
the actual fourth quarter 2022 revenues |
| ● | Record-level recurring revenue for consumables reflects continued strong printer utilization |
| ● | Fourth quarter GAAP net loss of $15.0 million, or $0.22 per diluted share, and non-GAAP net income of $1.6 million, or $0.02
per diluted share |
| ● | Tenth straight quarter of adjusted profitability |
| ● | Full year revenue of $627.6 million, 1.3% higher than 2022, excluding divestitures, and 3.7% lower than the actual full year
2022 revenues |
| ● | Full year GAAP net loss of $123.1 million, or $1.79 per diluted share, and non-GAAP net income of $7.7 million, or $0.11 per
diluted share |
| ● | $162.6 million cash and equivalents and no debt at year-end 2023 |
| ● | Stratasys board of directors continues its comprehensive strategic alternatives process |
MINNEAPOLIS & REHOVOT, Israel - (BUSINESS WIRE) - March 7, 2024
- Stratasys Ltd. (Nasdaq: SSYS), a leader in polymer 3D printing solutions, today announced financial results for the fourth quarter and
full year 2023.
Dr. Yoav Zeif, Stratasys’ Chief Executive Officer stated, “We
continued to differentiate ourselves in 2023, achieving our tenth consecutive quarter of profitability on an adjusted basis. We also delivered
1.3% full year revenue growth when adjusted for divestitures despite a persistently challenging backdrop for our customers. Revenue in
the fourth quarter was driven by another record for consumables sales, demonstrating how utilization of our systems remains strong, while
a relentless focus on cost control contributed to improved margins.”
Dr. Zeif continued, “We are innovating and investing as we expand
our leadership in additive manufacturing. Our newest and most advanced FDM offering, the F3300, is building a strong pipeline of interest
after announcing Toyota as its first customer, and engagement across our entire suite of offerings remains robust. As macro-economic conditions
normalize and capital spending constraints ease, we believe the pent-up demand for our best-in-class offerings will unlock, driving the
next phase of outsized growth and increased profitability for our company.”
Summary - Fourth Quarter 2023 Financial Results Compared to Fourth
Quarter 2022:
| ● | Revenue of $156.3 million compared to $159.3 million. |
| ● | GAAP gross margin of 44.7%, compared to 43.1%. |
| ● | Non-GAAP gross margin of 48.8%, compared to 48.4%. |
| ● | GAAP operating income of $5.7 million, compared to operating income of $1.6 million. |
| ● | Non-GAAP operating income of $2.0 million, compared to operating income of $5.1 million. |
| ● | GAAP net loss of $15.0 million, or $0.22 per diluted share, compared to a net loss of $2.4 million, or $0.04 per diluted share. |
| ● | Non-GAAP net income of $1.6 million, or $0.02 per diluted share, compared to net income of $4.6 million, or $0.07 per diluted share. |
| ● | Adjusted EBITDA of $7.7 million, compared to $10.7 million. |
| ● | Cash used in operations of $7.7 million, compared to cash used in operations of $18.1 million. |
Summary - 2023 Financial Results Compared to
2022:
| ● | Revenue of $627.6 million compared to $651.5 million. |
| ● | GAAP gross margin of 42.5%, compared to 42.4%. |
| ● | Non-GAAP gross margin of 48.2%, compared to 48.0%. |
| ● | GAAP operating loss of $87.6 million, compared to an operating loss of $57.2 million. |
| ● | Non-GAAP operating income of $12.6 million, compared to operating income of $13.5 million. |
| ● | GAAP net loss of $123.1 million, or $1.79 per diluted share, compared to a loss of $29.0 million, or $0.44
per diluted share. |
| ● | Non-GAAP net income of $7.7 million, or $0.11 per diluted share, compared to net income of $10.3 million,
or $0.15 per diluted share. |
| ● | Adjusted EBITDA of $35.0 million, compared to $36.1 million. |
| ● | Cash used in operations of $61.6 million, compared to cash used in operations of $75.4 million. |
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 providing the following outlook for 2024:
| ● | Full year revenue of $630 million to $645 million, improving sequentially through the year. |
| o | Compare to 2023 revenue of approximately $616 million excluding divestments and annualizing Covestro. |
| ● | Based on current logistics and materials costs, full year gross margins of 49.0%-49.5%, improving sequentially through the year. |
| ● | Full year operating expenses in a 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. |
| ● | 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 projected
amortization of intangible assets, $26 million to $28 million of share-based compensation expense, 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 historical 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. Fourth Quarter 2023 Webcast and Conference Call Details
The Company plans to webcast its conference call to discuss its fourth
quarter 2023 financial results on Thursday, March 7, 2024, 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://event.choruscall.com/mediaframe/webcast.html?webcastid=cZzaGlQr
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, 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 extent 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; the global macro-economic environment, including headwinds
caused by inflation, relatively high interest rates, unfavorable currency exchange rates and uncertain economic conditions; changes in
our overall strategy, including as related to any restructuring activities and our 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 of directors’ 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; 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 potential adverse impact of recent global
interruptions and delays involving freight carriers and other third parties on our supply chain and distribution network; global market,
political and economic conditions, and in the countries in which we operate in particular; potential adverse effects of Israel’s
retaliatory war against the terrorist organization Hamas; 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 expect to file with the U.S. Securities
and Exchange Commission, or SEC, in the coming days (the “2023 Annual Report”). Readers are urged to carefully review
and consider the various disclosures made throughout our 2023 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 2024, which will be furnished to the SEC throughout 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
and divestments related expense or gains and reorganization-related charges or gains, and legal provisions, (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, (iii) for certain non-GAAP measures, after eliminating the impact of changes attributable to currency exchange rate fluctuations,
and (iv) after excluding changes in revenues solely attributable to divestitures of former subsidiary companies. 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.
| Stratasys Ltd. |
| |
| Consolidated Balance Sheets |
| (in thousands, except share data) |
| (Unaudited) |
| | |
December 31, | | |
December 31, | |
| | |
2023 | | |
2022 | |
| ASSETS | |
| | |
| |
| | |
| | |
| |
| Current assets | |
| | |
| |
| Cash and cash equivalents | |
$ | 82,585 | | |
$ | 150,470 | |
| Short-term bank deposits | |
| 80,000 | | |
| 177,367 | |
| Accounts receivable, net of allowance for credit losses of $1,449 and $861 as of December 31, 2023 and December 31, 2022, respectively | |
| 172,009 | | |
| 144,739 | |
| Inventories | |
| 192,976 | | |
| 194,054 | |
| Prepaid expenses | |
| 7,929 | | |
| 5,767 | |
| Other current assets | |
| 24,596 | | |
| 27,823 | |
| | |
| | | |
| | |
| Total current assets | |
| 560,095 | | |
| 700,220 | |
| | |
| | | |
| | |
| Non-current assets | |
| | | |
| | |
| Property, plant and equipment, net | |
| 197,552 | | |
| 195,063 | |
| Goodwill | |
| 100,051 | | |
| 64,953 | |
| Other intangible assets, net | |
| 127,781 | | |
| 121,402 | |
| Operating lease right-of-use assets | |
| 18,895 | | |
| 18,122 | |
| Long-term investments | |
| 115,083 | | |
| 141,610 | |
| Other non-current assets | |
| 14,448 | | |
| 18,420 | |
| | |
| | | |
| | |
| Total non-current assets | |
| 573,810 | | |
| 559,570 | |
| | |
| | | |
| | |
| Total assets | |
$ | 1,133,905 | | |
$ | 1,259,790 | |
| | |
| | | |
| | |
| LIABILITIES AND EQUITY | |
| | | |
| | |
| | |
| | | |
| | |
| Current liabilities | |
| | | |
| | |
| Accounts payable | |
$ | 46,785 | | |
$ | 72,921 | |
| Accrued expenses and other current liabilities | |
| 36,656 | | |
| 45,912 | |
| Accrued compensation and related benefits | |
| 33,877 | | |
| 34,432 | |
| Deferred revenues - short-term | |
| 52,610 | | |
| 50,220 | |
| Operating lease liabilities - short-term | |
| 6,498 | | |
| 7,169 | |
| | |
| | | |
| | |
| Total current liabilities | |
| 176,426 | | |
| 210,654 | |
| | |
| | | |
| | |
| Non-current liabilities | |
| | | |
| | |
| Deferred revenues - long-term | |
| 23,655 | | |
| 25,214 | |
| Deferred income taxes | |
| 723 | | |
| 5,638 | |
| Operating lease liabilities - long-term | |
| 12,162 | | |
| 10,670 | |
| Contingent consideration | |
| 11,900 | | |
| 23,707 | |
| Other non-current liabilities | |
| 24,200 | | |
| 24,475 | |
| | |
| | | |
| | |
| Total non-current liabilities | |
| 72,640 | | |
| 89,704 | |
| | |
| | | |
| | |
| Total liabilities | |
| 249,066 | | |
| 300,358 | |
| | |
| | | |
| | |
| Equity | |
| | | |
| | |
| Ordinary shares, NIS 0.01 nominal value, authorized 180,000 shares;
69,656 shares and 67,086 shares issued and outstanding at December 31, 2023 and December 31, 2022, respectively | |
| 195 | | |
| 187 | |
| Additional paid-in capital | |
| 3,091,649 | | |
| 3,048,915 | |
| Accumulated other comprehensive loss | |
| (7,079 | ) | |
| (12,818 | ) |
| Accumulated deficit | |
| (2,199,926 | ) | |
| (2,076,852 | ) |
| Total Equity | |
| 884,839 | | |
| 959,432 | |
| | |
| | | |
| | |
| Total liabilities and equity | |
$ | 1,133,905 | | |
$ | 1,259,790 | |
| Stratasys Ltd. |
| |
| Consolidated Statements of Operations |
| (in thousands, except per share data) |
| (Unaudited) |
| | |
Three Months Ended December 31, | | |
Twelve Ended December 31, | |
| | |
2023 | | |
2022 | | |
2023 | | |
2022 | |
| | |
| | |
| | |
| | |
| |
| Revenues | |
| | |
| | |
| | |
| |
| Products | |
$ | 110,388 | | |
$ | 111,197 | | |
$ | 433,741 | | |
$ | 452,124 | |
| Services | |
| 45,949 | | |
| 48,062 | | |
| 193,857 | | |
| 199,359 | |
| | |
| 156,337 | | |
| 159,259 | | |
| 627,598 | | |
| 651,483 | |
| | |
| | | |
| | | |
| | | |
| | |
| Cost of revenues | |
| | | |
| | | |
| | | |
| | |
| Products | |
| 58,275 | | |
| 58,180 | | |
| 226,510 | | |
| 234,601 | |
| Services | |
| 28,304 | | |
| 32,431 | | |
| 134,064 | | |
| 140,415 | |
| | |
| 86,579 | | |
| 90,611 | | |
| 360,574 | | |
| 375,016 | |
| | |
| | | |
| | | |
| | | |
| | |
| Gross profit | |
| 69,758 | | |
| 68,648 | | |
| 267,024 | | |
| 276,467 | |
| | |
| | | |
| | | |
| | | |
| | |
| Operating expenses | |
| | | |
| | | |
| | | |
| | |
| Research and development, net | |
| 25,078 | | |
| 21,387 | | |
| 94,425 | | |
| 92,876 | |
| Selling, general and administrative | |
| 39,006 | | |
| 45,665 | | |
| 260,179 | | |
| 240,750 | |
| | |
| 64,084 | | |
| 67,052 | | |
| 354,604 | | |
| 333,626 | |
| | |
| | | |
| | | |
| | | |
| | |
| Operating income (loss) | |
| 5,674 | | |
| 1,596 | | |
| (87,580 | ) | |
| (57,159 | ) |
| | |
| | | |
| | | |
| | | |
| | |
| Gain from deconsolidation of subsidiary | |
| - | | |
| - | | |
| - | | |
| 39,136 | |
| Financial income, net | |
| 846 | | |
| 2,309 | | |
| 2,993 | | |
| 229 | |
| | |
| | | |
| | | |
| | | |
| | |
| Income (loss) before income taxes | |
| 6,520 | | |
| 3,905 | | |
| (84,587 | ) | |
| (17,794 | ) |
| | |
| | | |
| | | |
| | | |
| | |
| Income tax expense | |
| (637 | ) | |
| (2,658 | ) | |
| (5,782 | ) | |
| (5,454 | ) |
| | |
| | | |
| | | |
| | | |
| | |
| Share in losses of associated companies | |
| (20,839 | ) | |
| (3,637 | ) | |
| (32,705 | ) | |
| (5,726 | ) |
| | |
| | | |
| | | |
| | | |
| | |
| Net loss | |
$ | (14,956 | ) | |
$ | (2,390 | ) | |
$ | (123,074 | ) | |
$ | (28,974 | ) |
| | |
| | | |
| | | |
| | | |
| | |
| Net loss per share | |
| | | |
| | | |
| | | |
| | |
| Basic | |
$ | (0.22 | ) | |
$ | (0.04 | ) | |
$ | (1.79 | ) | |
$ | (0.44 | ) |
| Diluted | |
$ | (0.22 | ) | |
$ | (0.04 | ) | |
$ | (1.79 | ) | |
$ | (0.44 | ) |
| | |
| | | |
| | | |
| | | |
| | |
| Weighted average ordinary shares outstanding | |
| | | |
| | | |
| | | |
| | |
| Basic | |
| 69,375 | | |
| 66,908 | | |
| 68,666 | | |
| 66,491 | |
| Diluted | |
| 69,375 | | |
| 66,908 | | |
| 68,666 | | |
| 66,491 | |
| | |
| |
Three Months Ended December 31, |
|
| | |
| |
2023 | |
Non-GAAP | |
2023 | |
2022 | |
Non-GAAP | |
2022 |
|
| | |
| |
GAAP | |
Adjustments | |
Non-GAAP | |
GAAP | |
Adjustments | |
Non-GAAP |
|
| | |
| |
U.S. dollars and shares in thousands (except per share amounts) |
|
| | |
Gross profit (1) | |
$ | 69,758 | | |
$ | 6,565 | | |
$ | 76,323 | | |
$ | 68,648 | | |
$ | 8,423 | | |
$ |
77,071 |
|
| | |
Operating income (1,2) | |
| 5,674 | | |
| (3,659 | ) | |
| 2,015 | | |
| 1,596 | | |
| 3,456 | | |
|
5,052 |
|
| | |
Net income (loss) (1,2,3) | |
| (14,956 | ) | |
| 16,604 | | |
| 1,648 | | |
| (2,390 | ) | |
| 6,940 | | |
|
4,550 |
|
| | |
Net income (loss) per diluted share (4) | |
$ | (0.22 | ) | |
$ | 0.24 | | |
$ | 0.02 | | |
$ | (0.04 | ) | |
$ | 0.11 | | |
$ |
0.07 |
|
| | |
| |
| | | |
| | | |
| | | |
| | | |
| | |
|
|
|
|
| (1) | |
Acquired intangible assets amortization expense | |
| | | |
| 5,446 | | |
| | | |
| | | |
| 7,297 | |
|
|
|
|
| | |
Non-cash stock-based compensation expense | |
| | | |
| 879 | | |
| | | |
| | | |
| 1,041 | |
|
|
|
|
| | |
Restructuring and other related costs | |
| | | |
| 240 | | |
| | | |
| | | |
| 85 | |
|
|
|
|
| | |
| |
| | | |
| 6,565 | | |
| | | |
| | | |
| 8,423 | |
|
|
|
|
| | |
| |
| | | |
| | | |
| | | |
| | | |
| | |
|
|
|
|
| (2) | |
Acquired intangible assets amortization expense | |
| | | |
| 1,688 | | |
| | | |
| | | |
| 2,370 | |
|
|
|
|
| | |
Non-cash stock-based compensation expense | |
| | | |
| 6,997 | | |
| | | |
| | | |
| 7,664 | |
|
|
|
|
| | |
Restructuring and other related costs | |
| | | |
| 461 | | |
| | | |
| | | |
| 874 | |
|
|
|
|
| | |
Revaluation of investments | |
| | | |
| - | | |
| | | |
| | | |
| 560 | |
|
|
|
|
| | |
Contingent consideration | |
| | | |
| (23,206 | ) | |
| | | |
| | | |
| (19,490 | ) |
|
|
|
|
| | |
Legal, consulting and other expenses | |
| | | |
| 3,836 | | |
| | | |
| | | |
| 3,056 | |
|
|
|
|
| | |
| |
| | | |
| (10,224 | ) | |
| | | |
| | | |
| (4,967 | ) |
|
|
|
|
| | |
| |
| | | |
| (3,659 | ) | |
| | | |
| | | |
| 3,456 | |
|
|
|
|
| | |
| |
| | | |
| | | |
| | | |
| | | |
| | |
|
|
|
|
| (3) | |
Corresponding tax effect and other expenses | |
| | | |
| 489 | | |
| | | |
| | | |
| 1,770 | |
|
|
|
|
| | |
Equity method related amortization, divestments and impairments | |
| | | |
| 19,790 | | |
| | | |
| | | |
| 1,714 | |
|
|
|
|
| | |
Finance expenses | |
| | | |
| (16 | ) | |
| | | |
| | | |
| - | |
|
|
|
|
| | |
| |
| | | |
$ | 16,604 | | |
| | | |
| | | |
$ | 6,940 | |
|
|
|
|
| | |
| |
| | | |
| | | |
| | | |
| | | |
| | |
|
|
|
|
| (4) | |
Weighted average number of ordinary shares outstanding - Diluted | |
| 69,375 | | |
| | | |
| 69,801 | | |
| 66,908 | | |
| | | |
67,231 |
|
| | |
| |
Twelve Months Ended December 31, |
|
| | |
| |
2023 | |
Non-GAAP | |
2023 | |
2022 | |
Non-GAAP | |
2022 |
|
| | |
| |
GAAP | |
Adjustments | |
Non-GAAP | |
GAAP | |
Adjustments | |
Non-GAAP |
|
| | |
| |
U.S. dollars and shares in thousands (except per share amounts) |
|
| | |
Gross profit (1) | |
$ | 267,024 | | |
$ | 35,764 | | |
$ | 302,788 | | |
$ | 276,467 | | |
$ | 36,016 | | |
$ |
312,483 |
|
| | |
Operating income (loss) (1,2) | |
| (87,580 | ) | |
| 100,207 | | |
| 12,627 | | |
| (57,159 | ) | |
| 70,691 | | |
|
13,532 |
|
| | |
Net income (loss) (1,2,3) | |
| (123,074 | ) | |
| 130,783 | | |
| 7,709 | | |
| (28,974 | ) | |
| 39,235 | | |
|
10,261 |
|
| | |
Net income (loss) per diluted share (4) | |
$ | (1.79 | ) | |
$ | 1.90 | | |
$ | 0.11 | | |
$ | (0.44 | ) | |
$ | 0.59 | | |
$ |
0.15 |
|
| | |
| |
| | | |
| | | |
| | | |
| | | |
| | |
|
|
|
|
| (1) | |
Acquired intangible assets amortization expense | |
| | | |
| 19,603 | | |
| | | |
| | | |
| 28,158 | |
|
|
|
|
| | |
Non-cash stock-based compensation expense | |
| | | |
| 3,701 | | |
| | | |
| | | |
| 4,082 | |
|
|
|
|
| | |
Restructuring and other related costs | |
| | | |
| 12,460 | | |
| | | |
| | | |
| (174 | ) |
|
|
|
|
| | |
Impairment charges | |
| | | |
| - | | |
| | | |
| | | |
| 3,949 | |
|
|
|
|
| | |
| |
| | | |
| 35,764 | | |
| | | |
| | | |
| 36,016 | |
|
|
|
|
| | |
| |
| | | |
| | | |
| | | |
| | | |
| | |
|
|
|
|
| (2) | |
Acquired intangible assets amortization expense | |
| | | |
| 9,167 | | |
| | | |
| | | |
| 8,950 | |
|
|
|
|
| | |
Non-cash stock-based compensation expense | |
| | | |
| 27,917 | | |
| | | |
| | | |
| 29,378 | |
|
|
|
|
| | |
Restructuring and other related costs | |
| | | |
| 7,087 | | |
| | | |
| | | |
| 2,737 | |
|
|
|
|
| | |
Revaluation of investments | |
| | | |
| 4,880 | | |
| | | |
| | | |
| 3,777 | |
|
|
|
|
| | |
Contingent consideration | |
| | | |
| (22,329 | ) | |
| | | |
| | | |
| (18,293 | ) |
|
|
|
|
| | |
Legal, consulting and other expenses | |
| | | |
| 37,721 | | |
| | | |
| | | |
| 8,126 | |
|
|
|
|
| | |
| |
| | | |
| 64,443 | | |
| | | |
| | | |
| 34,676 | |
|
|
|
|
| | |
| |
| | | |
| 100,207 | | |
| | | |
| | | |
| 70,691 | |
|
|
|
|
| | |
| |
| | | |
| | | |
| | | |
| | | |
| | |
|
|
|
|
| (3) | |
Corresponding tax effect | |
| | | |
| 3,894 | | |
| | | |
| | | |
| 4,988 | |
|
|
|
|
| | |
Equity method related amortization, divestments and impairments | |
| | | |
| 24,871 | | |
| | | |
| | | |
| 2,285 | |
|
|
|
|
| | |
Finance expenses | |
| | | |
| 1,811 | | |
| | | |
| | | |
| 406 | |
|
|
|
|
| | |
Net gain from sale of business | |
| | | |
| - | | |
| | | |
| | | |
| (39,136 | ) |
|
|
|
|
| | |
| |
| | | |
$ | 130,783 | | |
| | | |
| | | |
$ | 39,235 | |
|
|
|
|
| | |
| |
| | | |
| | | |
| | | |
| | | |
| | |
|
|
|
|
| (4) | |
Weighted average number of ordinary shares outstanding - Diluted | |
| 68,666 | | |
| | | |
| 69,233 | | |
| 66,491 | | |
| | | |
|
67,068 |
|
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 Q4 and FY 2023 Results Speakers Dr. Yoav Zeif, CEO Eitan Zamir, CFO Yonah Lloyd, CCO & VP IR March 7, 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=cZzaGlQr 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, to be filed with the SEC in early March 2024 (the “2023 Annual Report”). Readers are urged to carefully review and consider the various disclosures made throughout our 2023 Annual Report (once it is filed) 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 on a quarterly basis, which Stratasys will furnish to the SEC throughout 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 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. 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 ▪ Profitable results in a CapEx - constrained environment ▪ Another record Consumables quarter, testament to strong usage ▪ Tenth consecutive quarter of adjusted profitability reflects business model discipline that differentiates Stratasys ▪ Laying foundation for meaningful use - cases that will significantly contribute to financial performance. ▪ Best - in - class technologies increasingly broaden MFG applications ▪ Pent - up demand to re - accelerate growth as macro environment improves and CapEx patterns normalize ▪ 2023 revenues up 1.3% YoY after backing out divestitures ▪ 2023 GM improvement reflects cost - control and efficiency focus ▪ Healthy balance sheet to support our growth ▪ 2023 revenues from MFG was 34%, up from 32.5% in 2022 We expect this to grow stronger as macro conditions improve - majority of our business will eventually come from MFG Make additive work for you
Daimler Truck North America adds H 350 to Stratasys fleet MFG support parts, functional prototypes Shifting more to MFG Furthering FDM leadership with innovative new F 3300 Double the speed, greater accuracy, focus on MFG Toyota first customer – strong engagement pipeline Q4 Customer Success: Industrial Whirlpool becomes Neo customer PartsToGo Service Bureau adds four more Neo systems Neo is prototyping today, next - gen for end - part MFG planned for 2025 Formula One penetration – multi - unit sales to Toyota, McLaren, others Wind - tunnel testing and tooling Interior design for Mercedes - Benz, Maserati, VW, Stellantis Make additive work for you
Dental – Accelerated Growth Coming ▪ One of the largest and most exciting growth avenues for the 3D printing industry ▪ Expanding our customer base with new product offerings to address a broader range of applications, including Dentures, Implant Models, Surgical Guides ▪ TrueDent is the only solution that offers permanent, multi - color, monolithic dentures at scale, at more than 50% lower cost ▪ Customers expanding printer fleets and increasing consumables utilization Medical – Imaging and Surgical Innovation ▪ Partnership with Siemens Healthineers for a landmark research project on advanced medical imaging phantoms for computed tomography imaging to ensure optimal CT scanner performance ▪ University Hospital Birmingham in England exclusively using our J5 printer to create cutting guides to improve surgical outcomes for head and neck cancer patients ▪ Stratasys J5 DentaJet, J5MediJet and J850 Digital Anatomy printers win the “Medical, Dental or Healthcare Application” category at prestigious 3D Printing Industry Awards in London Q 4 Dental and Medical Advances Make additive work for you
Monetizing GrabCAD ▪ GC has 40K+ users – continuing to add recurring revenue streams ▪ Early success with GC Print Pro, achieving faster, more accurate and economical prints across multiple systems simultaneously ▪ Helps service bureaus and internal 3DP shops rapidly and accurately estimate the cost and time of printed parts ▪ Available now on FDM/SAF, PolyJet announced, P3/Neo in the future First “Weatherability” Material ▪ Origin One DLP for automotive parts manufacturing ▪ Somos WeatherX 100, our first material using SAE automotive industry standards tested for weatherability, UV, durability and dimensional accuracy ▪ Introducing additional materials in 2024 to strengthen our position in DLP and open more MFG use cases Q4 Software and Materials Expansion Make additive work for you
CFO Eitan Zamir CFO Remarks ▪ Achieved solid results in the fourth quarter against what has continued to be a challenging backdrop of adverse macroeconomic factors and related pressures ▪ Confident that the high level of demand we are seeing in our customer engagements will translate into meaningful growth once these headwinds abate ▪ Results demonstrate the resilience our diversified offering provides, which led to our tenth consecutive quarter of profitability Make additive work for you
10 Non - GAAP GAAP Change Y/Y Q4 - 23 Q4 - 22 Change Y/Y Q4 - 23 Q4 - 22 - 1.9% 156.3 159.3 - 1.9% 156.3 159.3 Total Revenue (0.8) 76.3 2 69.8 68.6 Gross Profit 0. % 48. % % . % 4 . % 43. % ▪ % Margin ( 1 ) 4.1 5.7 1.6 Operating Income - % % % 2.6% 3.6% 1.0% ▪ % Margin (3.0) (12.6) (15.0) (2.4) Net Income (Loss) - 9 % 1.0% 2. % - 8.1% - 9.6% - 1.5% ▪ % Margin ( 0.0 ) 0.0 0.0 (0.18) (0.22) (0.04) Diluted EPS 3.9% 69.8 67. 3.7% 69.4 6 6.9 Diluted Shares Note: $ in millions unless noted otherwise. All numbers and percentages rounded Financial Results Make additive work for you Non - GAAP GAAP Change Y/Y FY - 23 FY - 22 Change Y/Y FY - 23 FY - 22 - 3.7% 627.6 651.5 - 3.7% 627.6 651.5 Total Revenue (9.7) 302.8 312.5 (9.5) 267.0 276.5 Gross Profit 0.2% 48.2% 48.0% 0.1% 42.5% 42.4% ▪ % Margin (0.9) 12.6 13.5 ( 3 .4 ) ( .6 ) (57.2) Operating Income - 0.1% 2.0% 2.1% - 5. % - 14. % - 8.8% ▪ % Margin (2.6) 7.7 10.3 ( ) ( 1 . ) (29.0) Net Income (Loss) - 0.4% 1.2% 1.6% - 1 % - 1 % - 4.4% ▪ % Margin (0.04) 0.11 0.15 ( 1. ) ( 1. ) (0.44) Diluted EPS 3.1% 69.2 67.1 3.3% 68.7 66.5 Diluted Shares
Note: $ in millions unless noted otherwise. All numbers and percentages rounded Quarterly Trend Revenues – Q 4 ’ 2 111.2 101.0 109.1 113.2 110.4 48.1 48.4 50.7 48.9 45.9 159.3 149.4 159.8 162.1 156.3 Q4' 22 Q1' 23 Q2'23 Q3'23 Q4'23 Product Service Y/Y Revenue - 0.7 % Product - $110.4M - 13.7 % ▪ Systems - $47.4M 11.9% ▪ Consumables - $63.0M - 4.6% Services - $45.9M 1.6% ▪ Customer Support - $30.7M Q 4 2023 Revenue ▪ Revenue of $ 156.3 million, up 1.3 % excluding divestitures from Stratasys Direct ( down 1.9 % vs. Q 4 2022 as reported) ▪ Product revenue down 0.7 % vs. Q 4 2022 . Consumables revenue of $ 63.0 M up 11.9 % ▪ Services revenue up 3.6 % excluding divestitures from Stratasys Direct ( down 4.6 % vs. Q 4 2022 as reported) Make additive work for you
Revenues – 202 Y/Y Revenue - 4.1 % Product - $433.7M - 16.4 % ▪ Systems - $187.7M % ▪ Consumables - $246.0M - 2. % Services - $193.9M % ▪ Customer Support - $30.6M FY 2023 Revenue Make additive work for you ▪ Revenue of $ 627.6 million up 1.3 % excluding MakerBot and Stratasys Direct divestitures ( down 3.7 % vs. 2022 as reported) ▪ Product revenue was down 1.1 % excluding MakerBot ( down 4.1 % vs. 2022 as reported) ▪ Services revenue up . % excluding Stratasys Direct divestments (down 2.8 % vs. 2022 as reported) Quarterly Trend 430.7 339.8 417.6 452.1 433.7 205.4 181.0 189.7 199.4 193.9 636.1 520.8 607.2 651.5 627.6 2019 2020 2021 2022 2023 Product Service * Reflects ~$26M of MakerBot revenue. Excluding divestment, 2022 revenues of ~$625.5M Note: $ in millions unless noted otherwise. All numbers and percentages rounded
GAAP Non - GAAP 43.1 % 43.8 % 41.5% 40.5 % 44.7% 47.7 % 49.4% 47.2 % 47.4 % 47.2 % 32.5% 32.1 % 29.0% 24.4 % 38.4% Q4 '22 Q1 '23 Q2 '23 Q3-23 Q4-23 48.4 % 47.3 % 48.5 % 48.3% 48.8 % 54.7% 53.8 % 52.3% 52.5 % 52.6 % 33.7 % 33.8% 40.4 % 38.4% 39.8 % Q4 '22 Q1 '23 Q2 '23 Q3-23 Q4-23 Service Gross Margin Product Gross Margin Total Gross Margin All percentages rounded Gross margins expected to continue improving with revenue growth Make additive work for you Gross Margins Improving
GAAP operating expenses (absolute and as a percentage of revenues) Non - GAAP operating expenses (absolute and as a percentage of revenues) 67.1 64.1 Q4'22 Q4'23 4 . 0 % 72 .0 74.3 Q4'22 Q4'23 47.5% Note: $ in millions unless noted otherwise. All numbers and percentages rounded 42.1 % 45.2 % Make additive work for you Q 4 Operating Expenses Up Due Primarily To Covestro Acquisition
( 2.4 ) ( 15.0 ) 1.6 5.7 Non - GAAP operating income ( 3.2 % in Q 4 ’ 22 vs 1.3 % in Q 4 ’ 23 out of total revenue) GAAP operating gain Non - GAAP net income GAAP net loss Note: $ in millions unless noted otherwise. All numbers and percentages rounded Q 4 ’ 22 Q4’23 Q 4 ’ 22 Q 4 ’ 23 Q 4 ’ 22 Q4’23 Q 4 ’ 22 Q 4 ’ 23 Q 4 ’ 22 Q4’23 7.7 10.7 1.6 Non - GAAP EBITDA ( 6.7 % in Q 4 ’ 22 vs 4.9 % in Q 4 ’ 23 out of total revenue) 5.1 2.0 4.6 Make additive work for you Tenth Straight Quarter of Positive Adjusted EPS
Balance sheet items Cash flow from operating activities* Q - 23 Q3 - 23 Q4 - 22 162.6 184.6 327.8 Cash and Cash Equivalents and Short - term deposits 172.0 164.1 7 Accounts Receivable 193.0 197.4 194.1 Inventories 383.3 382.9 351.8 Net Working Capital 16 *Operating Cash Flow would have been ~$ 7 million after excluding ~$ 15 M in costs related to mergers and acquisitions activities and takeover defense Note: $ in millions unless noted otherwise. All numbers and percentages rounded Make additive work for you ( 18.1 ) (7.7) (75.4) ( 61.6 ) Q 4 - 22 Q 4 - 23 2022 2023 Healthy Balance Sheet Positioned for Opportunities
Revenue Compare to ~$ 616 M 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 $20M - $25M $ 40 M - $ 45 M Make additive work for you 2024 Outlook
CEO Dr. Yoav Zeif CEO Summary ▪ Thanks to our global teams for their professionalism and dedication to help drive continued profitability as our business grows, creating long term value for all our stakeholders ▪ Particularly proud of our Israeli employees and families, many of whom were called to military service for most of the fourth quarter, as well as our employees worldwide, who stepped up valiantly to carry the additional workload to help ensure that our business operation was uninterrupted, with no material impact ▪ We differentiate ourselves with best - in - class technologies, an unparalleled go to market infrastructure, and an ongoing focus on operating efficiencies ▪ Challenging market conditions slowing pace of purchasing is only a delay in the inevitable widespread adoption of 3D printing ▪ Continued high utilization of existing systems and levels of engagement provide optimism as we continue to lay the foundation for expanded applications to drive accelerated growth Make additive work for you
19 THANK YOU. Make additive work for you
Appendix Note: $ in thousands unless noted otherwise. All numbers and percentages rounded Three months ended December 31 , 2022 Three months ended December 31 , 2023 Non - GAAP Adjustments GAAP Non - GAAP Adjustments GAAP $ 77,071 $ (8,423) $ 68,648 $ 76,323 $6,565 $69,758 Gross Profit (1) 5,052 3,456 1,596 2,015 - 3,659 5,674 Operating income (Loss) (1,2) 4,550 6,940 (2,390) 1,648 16,604 (14,956) Net income (Loss) (1,2,3) $ 0.07 $0.11 $ ( 0.04 ) $ 0.02 $0.24 $ (0.22) Net income (Loss) per diluted share (4) 7,297 5,446 1) Acquired intangible assets amortization expense 1,041 879 Non - cash stock - based compensation expense 85 240 Restructuring and other related costs 8,423 6,565 2,370 1,688 2) Acquired intangible assets amortization expense 7,664 6,997 Non - cash stock - based compensation expense 874 461 Restructuring and other related costs 560 0 Revaluation of investment (19,490) (23,206) Contingent consideration 3,056 3,836 Legal, consulting and other expenses (4,967) (10,224) 3,456 (3,659) 1,770 489 3) Corresponding tax effect and other expenses 1,714 19,790 Equity method related amortization, impairment and other (16) Finance expenses $6,940 $16,604 67,262 66,908 69,801 69,375 4) Weighted average number or ordinary shares outstanding – Diluted
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