- 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
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.
- 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.
- 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.
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
197
195
and outstanding at March 31, 2024 and December 31, 2023,
respectively
3,100,445
3,091,649
Additional paid-in capital 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 ordinaryshares 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
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240529130458/en/
Yonah Lloyd CCO & VP Investor Relations
Yonah.Lloyd@stratasys.com
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