Stratasys Ltd., a leader in polymer 3D printing solutions, announced financial results for the fourth quarter and full year 2022.
Dr. Yoav Zeif, Stratasys’ Chief Executive Officer stated, “Stratasys grew 11.4% in 2022, adjusting for divestitures and currency impacts, while delivering our sixth consecutive quarter of profitability on an adjusted basis against an increasingly challenging macroeconomic environment. Strong execution by our team and a relentless focus on controlling costs contributed to our effective efforts to overcome these challenges.”
Dr. Zeif continued, “We are encouraged by the strong future demand indicators from our customers for our additive manufacturing polymer systems and consumables. Our high engagement levels across our innovative products, along with the strength of our customer service revenues, provide us with the confidence that once capital spending restrictions are lifted and utilization levels increase, our efforts will be rewarded. With our broad-based technology portfolio and an unmatched go-to-market capability, we are positioned well to gain increased share when macroeconomic headwinds subside. Armed with a strong balance sheet and a disciplined approach to capital allocation, we are well prepared to build on our industry leadership in the coming years.”
Summary - Fourth Quarter 2022 Financial Results Compared to Fourth Quarter 2021:
- Revenue of $159.3 million compared to $167.0 million.
- GAAP gross margin of 43.1%, compared to 43.7%.
- Non-GAAP gross margin of 48.4%, compared to 48.7%.
- GAAP operating income of $1.6 million, compared to an operating loss of $16.2 million.
- Non-GAAP operating income of $5.1 million, compared to non-GAAP operating income of $1.7 million.
- GAAP net loss of $2.4 million, or $0.04 per diluted share, compared to a net loss of $4.8 million, or $0.07 per diluted share.
- Non-GAAP net income of $4.6 million, or $0.07 per diluted share, compared to non-GAAP net income of $0.5 million, or $0.01 per diluted share.
- Adjusted EBITDA of $10.7 million, compared to $7.9 million.
- Planned inventory build resulted in cash used in operations of $18.1 million, compared to cash generated of $4.4 million year over year.
Summary - 2022 Financial Results Compared to 2021:
- Revenue of $651.5 million compared to $607.2 million.
- GAAP gross margin of 42.4%, compared to 42.8%.
- Non-GAAP gross margin of 48.0%, compared to 47.8%.
- GAAP operating loss of $57.2 million, compared to a $79.2 million operating loss.
- Non-GAAP operating income of $13.5 million, compared to a $1.7 million non-GAAP operating loss.
- Adjusted EBITDA of $36.1 million, compared to $22.6 million.
- GAAP net loss of $29.0 million, or ($0.44) per diluted share, compared to a loss of $62.0 million, or ($0.98) per diluted share.
- Non-GAAP net income of $10.3 million, or $0.15 per diluted share, compared to non-GAAP net loss of $4.3 million, or $(0.07) per diluted share.
- Planned inventory build resulted in cash used in operations of $75.4 million, compared to cash provided by operations of $35.8 million.
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Non-GAAP Adjustments: |
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Quarter Ended |
Year Ended |
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Revenue Growth Rates (%) as reported |
(4.6 |
%) |
7.3 |
% |
|
|
Adjusted Revenue Growth Rates (%) excluding divestitures |
(0.3 |
%) |
9.0 |
% |
|
|
Adjusted Revenue Growth Rates (%) excluding divestitures and FX effects |
1.7 |
% |
11.4 |
% |
|
Financial Outlook:
Based on current market conditions and assuming that the impacts of global inflationary pressures, interest rate hikes and supply chain costs do not impede economic activity further, the Company is providing the following outlook for 2023:
- Full year revenue of $620 million to $670 million.
- Sequential quarterly revenue growth, notably higher in the second half
- Based on current logistics and materials costs, full year gross margins of 48.0% to 49.0%, with improved year-over-year growth in the second half of 2023.
- Full year-operating expenses of $290 million to $300 million.
- Full year non-GAAP operating margins of 2.5% to 3.5% with improving profitable contribution through the year.
- GAAP net loss of $78 million to $57 million, or ($1.12) to ($0.83) per diluted share.
- Non-GAAP net income of $9 million to $17 million, or $0.12 to $0.24 per diluted share.
- Adjusted EBITDA of $35 million to $50 million.
- Capital expenditures of $20 million to $25 million.
Non-GAAP earnings guidance excludes $30 million to $32 million of projected amortization of intangible assets, $28 million to $30 million of share-based compensation expense, and reorganization and other expenses of $15 million to $22 million. Non-GAAP guidance includes tax adjustments of $2 million to $3 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 our press release and slide presentation, with itemized detail concerning the non-GAAP financial measures.
Stratasys Ltd. Fourth Quarter 2022 Webcast and Conference Call Details
The Company plans to webcast its conference call to discuss its fourth quarter 2022 financial results on Thursday, March 2, 2023, at 8:30 a.m. (ET).
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=K6UFH5he
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.
