Stratasys Ltd., a leader in polymer 3D printing solutions, announced financial results for the first quarter 2023.
First Quarter 2023 Financial Results Compared to First Quarter 2022:
- Revenue of $149.4 million, 8.6% lower versus first quarter 2022.
- GAAP gross margin of 43.8%, compared to 42.6%.
- Non-GAAP gross margin of 47.3%, compared to 47.3%.
- GAAP operating loss of $16.8 million, compared to an operating loss of $19.6 million.
- Non-GAAP operating income of $1.5 million, compared to non-GAAP operating income of $2.0 million.
- GAAP net loss of $22.2 million, or $0.33 per diluted share, compared to a net loss of $20.9 million, or $0.32 per diluted share.
- Non-GAAP net income of $1.1 million, or $0.02 per diluted share, compared to non-GAAP net income of $1.2 million, or $0.02 per diluted share.
- Adjusted EBITDA of $7.0 million, compared to $8.1 million.
- Planned inventory spending resulted in cash used in operations of $17.9 million, compared to cash used in operations of $16.1 million in the year-ago quarter.
Dr. Yoav Zeif, Stratasys’ Chief Executive Officer stated, “Stratasys continues to execute our winning strategy, driven by our broad, global, diverse set of systems, materials, and software solutions. Utilization of our systems is growing, resulting in our highest ever quarter for recurring revenues from both consumables and customer service, even as clients’ capital budgets remain constrained. Our margin profile remains strong, and we delivered our seventh consecutive quarter of positive adjusted earnings per share, demonstrating the resiliency of our business model.”
Dr. Zeif continued, “Engagement with our customers across our entire suite of existing and new technologies remains robust, and we were excited to introduce transformative new dental hardware and materials offerings that will stimulate meaningful future growth. We expect the recently closed addition of Covestro’s Additive Manufacturing business to expand our leading position in higher-margin consumables offerings and significantly increase our recurring stream of revenue. Supported by our strong balance sheet, we continue to make the investments to drive disruptive innovation, such as our partnership with CollPlant to transform regenerative medicine. We expect to deliver outsized growth and industry share gains when macroeconomic headwinds subside and the additive manufacturing industry expands.”
2023 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 raising its revenue guidance and reiterating the remainder of its outlook for 2023:
- Full year revenue of $630 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 a majority of the year-over-year improvement in the second half of 2023.
- Full year-operating expenses in the range of $290 million to $300 million.
- Full year non-GAAP operating margins in a range 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.
2023 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. 2023 non-GAAP guidance includes tax adjustments of $2 million to $3 million on the above non-GAAP items.
Medium Term Financial Forecast:
In addition, the Company is providing the following forecast for key annual financial metrics:
- 2024 gross margin above 50% and positive free cash flow.
- 2026 revenues to grow organically to greater than $1 billion, with adjusted EBITDA margin over 15%.
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. First Quarter 2023 Webcast and Conference Call Details
The Company plans to webcast its conference call to discuss its first quarter 2023 financial results on Tuesday, May 16, 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=f4rFQOPp
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.
