FARO® Technologies, Inc., a global leader in 4D digital reality solutions, announced its financial results for the fourth quarter and full year ended December 31, 2022.
"Improving fourth quarter customer demand, with strength in Laser Scanners and the European market, as well as the addition of GeoSLAM resulted in year-on-year revenue growth of 10% to $110.5 million on a constant currency basis. Due to a stronger US dollar relative to last year, sales on an actual currency basis were $103.9 million, up 4% compared to the prior year period," stated Michael Burger, President and Chief Executive Officer. "With our recent acquisition of SiteScape, which enables iOS based low-resolution LiDAR 3D capture, FARO now offers one of the broadest sets of 3D capture devices and technology in the market. Together with the success of our recent product releases and the launch of FARO Sphere, I am excited by the increasing level of customer engagement and the enormous market opportunity represented by digitalizing the physical world."
Fourth Quarter 2022 Financial Summary
- Total sales of $103.9 million, up 4% compared to the prior year period
- Non-GAAP total sales on a constant currency basis of $110.5 million, up 10% compared to the prior year period
- Software sales, of $12.9 million or 13% of revenue, declined 5% year on year on an actual currency basis primarily as a result of the strengthening US dollar exchange rates as well as the conversion of license revenue to subscription
- Recurring revenue of $18.1 million or 17% of revenue, up from 16% in the prior year period
- Gross margin of 49.1%, compared to 55.6% in the prior year period with the reduction primarily a result of the stronger US dollar to foreign currency exchange rates
- Non-GAAP gross margin of 52.8%, compared to 55.8% in the prior year period
- Operating expenses of $52.7 million, compared to $51.8 million in the prior year period
- Non-GAAP operating expenses of $45.8 million, compared to $44.2 million in the prior year period
- Net loss of $2.2 million, or ($0.12) per share compared to $31.7 million, or ($1.74) per share in the prior year period
- Non-GAAP net income of $7.1 million, or $0.38 per share compared to net income of $8.7 million, or $0.48 per share in the prior year period
- Adjusted EBITDA of $11.7 million, or 11.3% of total sales compared to $14.2 million, or 14.2% of total sales in the prior year period
- Cash and short-term investments of $37.8 million, compared to $48.5 million as of September 30, 2022
* A reconciliation of the non-GAAP financial measures to the most directly comparable GAAP financial measures is provided in the financial schedules portion at the end of this press release. An additional explanation of these measures is included below under the heading "Non-GAAP Financial Measures".
Full Year 2022 Financial Summary
- Total sales of $345.8 million, up 2% compared to the prior year period
- Non-GAAP total sales on a constant currency basis of $361.0 million, up 8% compared to the prior year period
- Net loss of $26.8 million, or ($1.46) per share compared to net loss of $40.0 million, or ($2.20) per share in the prior year period
- Non-GAAP net income of $4.6 million, or $0.25 per share compared to non-GAAP net income of $10.2 million, or $0.56 per share in the prior year period
Outlook for the First Quarter 2023
For the first quarter ending March 31, 2023, FARO currently expects:
- Revenue in the range of $81 to $89 million
- Non-GAAP loss per share in the range of -$0.22 to -$0.02
Note: Revenue performance on a constant currency basis is provided such that users of the financial statements may assess our underlying performance excluding the effect of foreign currency rate fluctuations. To present this information, current period performance for entities reporting in currencies other than U.S. dollars are converted to United States dollars at the exchange rates in effect on December 31, 2021.
Conference Call
The Company will host a conference call to discuss these results on Wednesday, February 15, 2023, at 5:00 p.m. ET. Interested parties can access the conference call by dialing (800) 245-3047 (U.S.) or +1 (203) 518-9765 (International) and using the passcode FARO. A live webcast will be available in the Investor Relations section of FARO's website at: https://www.faro.com/en/About-Us/Investor-Relations/Financial-Events-and-Presentations
A replay webcast will be available in the Investor Relations section of the company's web site approximately two hours after the conclusion of the call and will remain available for approximately 30 calendar days.
