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 - Provides 2024 Outlook
Dr.
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.-
Compare to 2023 revenue of approximately
$616 million excluding divestments and annualizing Covestro.
-
Compare to 2023 revenue of approximately
- 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
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.
The Company plans to webcast its conference call to discuss its fourth quarter 2023 financial results on
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
To learn more about
Cautionary Statement Regarding Forward-Looking Statements
The statements in this press release regarding
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.
|
|||||||||
Consolidated Balance Sheets | |||||||||
(in thousands, except share data) | |||||||||
(Unaudited) | |||||||||
|
|
||||||||
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 |
|
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 |
|
|||
|
|
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, |
|||||||||
shares; 69,656 shares and 67,086 shares issued |
|
195 |
|
|
187 |
|
|||
and outstanding at |
|
3,091,649 |
|
|
3,048,915 |
|
|||
Additional paid-in capital | |||||||||
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 |
|
|
||||||||||||||||
Consolidated Statements of Operations | ||||||||||||||||
(in thousands, except per share data) | ||||||||||||||||
(Unaudited) | ||||||||||||||||
Three Months Ended |
Twelve Ended |
|||||||||||||||
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 |
|||||||||||||||||||||||
2023 |
|
Non-GAAP |
|
2023 |
|
2022 |
|
Non-GAAP |
|
2022 |
|||||||||||||
GAAP | Adjustments | Non-GAAP | GAAP | Adjustments | Non-GAAP | ||||||||||||||||||
|
|||||||||||||||||||||||
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 |
|||||||||||||||||||||||
2023 |
|
Non-GAAP |
|
2023 |
|
2022 |
|
Non-GAAP |
|
2022 |
|||||||||||||
GAAP | Adjustments | Non-GAAP | GAAP | Adjustments | Non-GAAP | ||||||||||||||||||
|
|||||||||||||||||||||||
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 |
|
|||
Reconciliation of GAAP to Non-GAAP Forward Looking Guidance | |||
Fiscal Year 2024 | |||
(in millions, except per share data) | |||
GAAP net loss | ( |
||
Adjustments | |||
Stock-based compensation expense |
|
||
Intangible assets amortization expense |
|
||
Reorganization and other |
|
||
Tax expense (benefit) related to Non-GAAP adjustments |
|
||
Non-GAAP net income |
|
||
GAAP loss per share | ( |
||
Non-GAAP diluted earnings per share |
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20240307647578/en/
CCO, VP Investor Relations
Yonah.Lloyd@stratasys.com
Source: