Stratasys Releases First Quarter 2024 Financial Results
-
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
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.
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.
-
Compare to 2023 revenue of approximately
- 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
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.
The Company plans to webcast its conference call to discuss its first quarter 2024 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=H13Rjkjs
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, 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.
|
||||||||
Consolidated Balance Sheets (Unaudited) | ||||||||
(in thousands, except share data) | ||||||||
|
|
|||||||
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 |
|
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 |
|
||
|
|
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, |
||||||||
shares; 70,440 shares and 69,656 shares issued |
|
197 |
|
|
195 |
|
||
and outstanding at |
|
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 |
|
|
||||||||
Consolidated Statements of Operations | ||||||||
(in thousands, except per share data) | ||||||||
Three Months Ended |
||||||||
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 |
||||||||||||||||||||||
2024 |
|
Non-GAAP |
|
2024 |
|
2023 |
|
Non-GAAP |
|
2023 |
||||||||||||
GAAP |
|
Adjustments |
|
Non-GAAP |
|
GAAP |
|
Adjustments |
|
Non-GAAP |
||||||||||||
|
||||||||||||||||||||||
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 ordinary shares outstanding - Diluted |
|
69,993 |
|
|
69,993 |
|
|
67,583 |
|
|
68,080 |
|
||
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/20240529130458/en/
CCO & VP Investor Relations
Yonah.Lloyd@stratasys.com
Source: