Stratasys Ltd., a leader in polymer 3D printing solutions, announced financial results for the third quarter of 2022.
Third Quarter 2022 Financial Results Compared to Third Quarter 2021:
- Consolidated revenue of $162.2 million, up 2.0% compared to $159.0 million; adjusted revenue excluding divestitures and on a constant currency basis increased 7.8%.
- GAAP gross margin of 43.6% versus 42.9%.
- Non-GAAP gross margin of 48.5%, compared to 48.2%.
- GAAP operating loss of $15.6 million, compared to a GAAP operating loss of $21.9 million.
- Non-GAAP operating income of $4.5 million, versus non-GAAP operating income of $1.8 million.
- GAAP net income of $18.7 million, or $0.28 per diluted share, compared to net loss of $18.1 million, or ($0.28) per diluted share.
- Non-GAAP net income of $3.3 million, or $0.05 per diluted share, versus non-GAAP net income of $0.5 million, or $0.01 per diluted share.
- Adjusted EBITDA of $9.9 million, compared to $7.8 million.
- $18.4 million of cash used by, compared to $3.0 million of cash generated from, operating activities, reflecting cash use for a continued augmentation of inventories.
Dr. Yoav Zeif, Stratasys’ Chief Executive Officer, said “We delivered our highest third quarter revenue in seven years. This was driven by 18.9% growth in our systems, excluding divestitures and on a constant currency basis. We have now achieved five consecutive quarters of positive earnings, demonstrating our unique ability to generate profitable growth even while navigating a challenging global economic backdrop that includes prolonged customer sales cycles and delayed consumables purchases.”
“As the leading provider of comprehensive polymer additive manufacturing products, software, and services solutions, we continue to enhance our core competencies and evolve our offerings to outpace our customers’ expanding needs. We are excited about the significant expansion of our materials portfolio across multiple technologies, which we believe will drive higher-margin consumables sales in the coming years. In addition, as part of our growth strategy we will keep selectively adding and incubating complementary new technology-driven businesses that we expect will spur incremental growth in the future. Stratasys is ideally positioned to provide the necessary solutions to catalyze our customers’ ongoing transformation from prototyping to additive manufacturing at scale while creating long-term value for all of our shareholders,” Dr. Zeif concluded.
Financial Outlook:
Based on current market conditions, and assuming that the collective impact of global supply chain costs, rising interest rates, currency risk and inflation does not further worsen economic activity, the Company is updating its outlook for 2022 to include the impact of $17 million from its MakerBot divestiture as follows:
- Full year 2022 revenue of $648 million to $652 million, which includes the impact of approximately $13 million to reflect the anticipated impact of customer-related delays in the purchasing of systems and materials due to anticipated, ongoing economic uncertainty as well as ongoing pressure on foreign exchange rates. The updated outlook represents approximately 10% full year growth over 2021 after adjusting for the MakerBot divestiture.
- Full-year 2022 gross margins flat to slightly higher compared to full-year 2021, based on current logistics and materials costs.
- Full year-operating expenses $5 million to $10 million higher than 2021, primarily due to the divestiture of MakerBot and by improved efficiencies.
- Full year non-GAAP operating margins slightly above 2%.
- GAAP net loss of $48 million to $39 million, or ($0.72) to ($0.59) per diluted share.
- Non-GAAP net income of $6 million to $8 million, or $0.09 to $0.12 per diluted share.
- Adjusted EBITDA of $34 million to $37 million.
- Capital expenditures of $15 million to $20 million.
Non-GAAP earnings outlook excludes $37 million to $38 million of anticipated amortization of intangible assets, $33 million to $35 million of non-cash share-based compensation expense, $39 million gain from deconsolidation of MakerBot, and reorganization and other expenses of $14 million to $16 million. Non-GAAP outlook includes tax adjustments of $3 million to $5 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 this press release and slide presentation, with itemized detail concerning the non-GAAP financial measures.
Stratasys Ltd. Third Quarter 2022 Webcast and Conference Call Details:
The Company plans to webcast its conference call to discuss its third quarter 2022 financial results on Thursday, November 10, 2022, at 8:30 a.m. (ET).
The investor conference call will be available via live webcast on the Stratasys website at investors.stratasys.com, or directly at the following web address:
https://event.choruscall.com/mediaframe/webcast.html?webcastid=Aau6uFJK
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.
