Stratasys Ltd., a leader in polymer 3D printing solutions, announced financial results for the fourth quarter and full year 2023.
Dr. Yoav Zeif, Stratasys’ Chief Executive Officer stated, “We continued to differentiate ourselves in 2023, achieving our tenth consecutive quarter of profitability on an adjusted basis. We also delivered 1.3% full year revenue growth when adjusted for divestitures despite a persistently challenging backdrop for our customers. Revenue in the fourth quarter was driven by another record for consumables sales, demonstrating how utilization of our systems remains strong, while a relentless focus on cost control contributed to improved margins.”
Dr. Zeif continued, “We are innovating and investing as we expand our leadership in additive manufacturing. Our newest and most advanced FDM offering, the F3300, is building a strong pipeline of interest after announcing Toyota as its first customer, and engagement across our entire suite of offerings remains robust. As macro-economic conditions normalize and capital spending constraints ease, we believe the pent-up demand for our best-in-class offerings will unlock, driving the next phase of outsized growth and increased profitability for our company.”
Summary - Fourth Quarter 2023 Financial Results Compared to Fourth Quarter 2022:
- Revenue of $156.3 million compared to $159.3 million.
- GAAP gross margin of 44.7%, compared to 43.1%.
- Non-GAAP gross margin of 48.8%, compared to 48.4%.
- GAAP operating income of $5.7 million, compared to operating income of $1.6 million.
- Non-GAAP operating income of $2.0 million, compared to operating income of $5.1 million.
- GAAP net loss of $15.0 million, or $0.22 per diluted share, compared to a net loss of $2.4 million, or $0.04 per diluted share.
- Non-GAAP net income of $1.6 million, or $0.02 per diluted share, compared to net income of $4.6 million, or $0.07 per diluted share.
- Adjusted EBITDA of $7.7 million, compared to $10.7 million.
- Cash used in operations of $7.7 million, compared to cash used in operations of $18.1 million.
Summary - 2023 Financial Results Compared to 2022:
- Revenue of $627.6 million compared to $651.5 million.
- GAAP gross margin of 42.5%, compared to 42.4%.
- Non-GAAP gross margin of 48.2%, compared to 48.0%.
- GAAP operating loss of $87.6 million, compared to an operating loss of $57.2 million.
- Non-GAAP operating income of $12.6 million, compared to operating income of $13.5 million.
- GAAP net loss of $123.1 million, or $1.79 per diluted share, compared to a loss of $29.0 million, or $0.44 per diluted share.
- Non-GAAP net income of $7.7 million, or $0.11 per diluted share, compared to net income of $10.3 million, or $0.15 per diluted share.
- Adjusted EBITDA of $35.0 million, compared to $36.1 million.
- Cash used in operations of $61.6 million, compared to cash used in operations of $75.4 million.
Financial Outlook:
Based on current market conditions and assuming that the impacts of global inflationary pressures, relatively high interest rates and supply chain costs do not impede economic activity further, the Company is providing the following outlook for 2024:
- Full year revenue of $630 million to $645 million, improving sequentially through the year.
- Compare to 2023 revenue of approximately $616 million excluding divestments and annualizing Covestro.
- Based on current logistics and materials costs, full year gross margins of 49.0%-49.5%, improving sequentially through the year.
- Full year operating expenses in a range of $292 million to $297 million.
- Full year non-GAAP operating margins in a range of 2.5% to 3.5%.
- GAAP net loss of $88 million to $72 million, or ($1.24) to ($1.01) per diluted share.
- Non-GAAP net income of $9 million to $14 million, or $0.12 to $0.19 per diluted share.
- Adjusted EBITDA of $40 million to $45 million.
- Capital expenditures of $20 million to $25 million.
- Positive cash flow from operating activities.
Non-GAAP earnings guidance excludes $29 million to $31 million of projected amortization of intangible assets, $26 million to $28 million of share-based compensation expense, and reorganization and other expenses of $29 million to $35 million. Non-GAAP guidance includes tax adjustments of $2 million to $3 million on the above non-GAAP items.
Appropriate reconciliations between historical 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 2023 Webcast and Conference Call Details
The Company plans to webcast its conference call to discuss its fourth quarter 2023 financial results on Thursday, March 7, 2024, 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=cZzaGlQr
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.
