Stratasys Ltd. announced financial results for the fourth quarter and full year 2020.
Fourth Quarter 2020 Financial Results Summary Compared to Fourth Quarter 2019:
- Revenue was $142.4 million, compared to $160.2 million.
- GAAP gross margin was 46.4%, compared to 49.1%.
- Non-GAAP gross margin was 49.5%, compared to 52.4%.
- GAAP operating loss was $2.5 million, compared to an operating loss of $3.3 million.
- Non-GAAP operating income was $8.3 million, compared to $10.2 million.
- GAAP net income was $11.0 million, or $0.20 per diluted share, compared to a net loss of $2.8 million, or $(0.05) per diluted share.
- Non-GAAP net income was $7.0 million, or $0.13 per diluted share, compared to $10.0 million, or $0.18 per diluted share.
- Adjusted EBITDA was $14.6 million, compared to $16.6 million.
- Generated $23.7 million of cash from operations.
Dr. Yoav Zeif, Chief Executive Officer of Stratasys, commenting on the results, stated, “Our results reflect the resilience and diversification of our business model. We delivered sequential revenue growth in the back half of the year and this quarter produced the highest operating cash flow in almost three years. We believe both our industry and company are starting to enter a meaningful, sustained trajectory of unprecedented growth and are excited to capitalize on the opportunities ahead.”
Dr. Zeif continued, “In 2020, we implemented a new strategy to be the first choice for polymer 3D printing, with a specific focus on expanding into fast-growing manufacturing applications. We rightsized the company and enhanced our operating model to be application-centric, allowing our team to better leverage synergies. Stratasys is well-positioned to grow, armed with a strong balance sheet with no debt. This year we will add three new technology platforms and will continue to prudently execute on our capital allocation strategy to meaningfully accelerate revenue, earnings and cash flow as our investments begin to contribute in the years ahead and, in turn, drive value for our shareholders.”
2020 Financial Results Summary Compared to 2019:
- Revenue for 2020 was $520.8 million compared to $636.1 million.
- GAAP gross margin in 2020 was 42.1%, compared to 49.3%.
- Non-GAAP gross margin in 2020 was 47.6%, compared to 52.3%.
- GAAP operating loss for 2020 was $456.0 million, primarily due to $386.2 million goodwill impairment in the third quarter,compared to $11.7 million operating loss.
- Non-GAAP operating loss for 2020 was $9.1 million, compared to $34.1 million operating income.
- Adjusted EBITDA in 2020 was $16.0 million, compared to $60.0 million.
- GAAP net loss for 2020 was $443.7 million, or ($8.08) per diluted share, primarily due to a $386.2 million goodwill impairment in the third quarter, compared to a loss of $10.8 million, or ($0.20) per diluted share.
- Non-GAAP net loss for 2020 was $13.9 million, or $(0.25) per diluted share, compared to non-GAAP net income of $30.5 million, or $0.56 per diluted share.
- Generated $27.8 million in cash from operations in 2020 compared to $11.2 million used.
Financial Outlook:
Given the dynamic and evolving impact of the pandemic on the Company's operations, and uncertainty around the timing and extent of an anticipated recovery, the Company is providing the following information based on its pipeline, current market and industry conditions, and previously communicated information:
- First quarter 2021 revenue is anticipated to track relatively similar to the first quarter of 2020.
- Second quarter 2021 revenue should approximate mid-teens percentage growth year-over-year, assuming current consumption trends and the impact of the pandemic persist.
- Full year operating expense is expected to increase over 2020 by approximately $25 million primarily due to the return from a four-day to a five-day work week as of January 1st, 2021, as well as the impact of recent acquisitions. Longer term, the Company expects to realize significant leverage benefits from its investments as revenue growth accelerates in 2022 and beyond.
- Capital expenditures are anticipated to range from $24 million to $30 million.
Stratasys Ltd. Fourth Quarter 2020 Webcast and Conference Call Details
The Company plans to webcast its conference call to discuss its fourth quarter and full year 2020 financial results on Monday, March 1, 2021 at 8:30 a.m. (ET).
The investor conference call will be available via live webcast on the Stratasys web site.
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 6 months at investors.stratasys.com, or by accessing the above-provided web address.
