Stratasys Ltd. announced financial results for the second quarter 2024.
Second Quarter 2024 Financial Results Compared to Second Quarter 2023:
- Revenue of $138.0 million, compared to $159.8 million ($154.6 million net of divestments).
- GAAP gross margin of 43.8%, compared to 41.5%.
- Non-GAAP gross margin of 49.0%, compared to 48.5%.
- GAAP operating loss of $26.0 million, compared to an operating loss of $33.7 million.
- Non-GAAP operating loss of $3.2 million, compared to non-GAAP operating income of $5.0 million.
- GAAP net loss of $25.7 million, or $0.36 per diluted share, compared to a net loss of $38.6 million, or $0.56 per diluted share.
- Non-GAAP net loss of $3.0 million, or $0.04 per diluted share, compared to non-GAAP net income of $2.5 million, or $0.04 per diluted share.
- Adjusted EBITDA of $2.3 million, compared to $10.6 million.
- Cash used in operating activities of $2.4 million, compared to $23.2 million.
Business Update:
Following a comprehensive strategic review, Stratasys is taking focused restructuring actions to further strengthen its industry leading balance sheet and robust business model to more effectively weather all market cycles. The initiatives are expected to support ongoing focused innovation investments and facilitate wider adoption of additive manufacturing.
Effective immediately, the Company will streamline operations and enhance its go to market strategy to focus on the highest growth potential products, materials and software solutions. By the end of this year, the Company will have rightsized its workforce by approximately 15%. These steps are expected to produce approximately $40 million in annual cost savings beginning in the first quarter of 2025, along with annualized EBITDA margins of 8% at current revenue levels. Furthermore, in addition to sustainable profitability, the Company will remain well-positioned to act upon opportunities that may arise.
Dr. Yoav Zeif, Stratasys’ Chief Executive Officer, stated, “For the Company to maintain its industry leadership, we continuously evaluate and assess our business model to ensure we are optimally aligned with evolving market conditions. We are confident that our efforts will enable our customers to more effectively address their biggest manufacturing challenges, which should lead to increased adoption of our additive technologies. This realignment is critical to ensure that we can achieve our objectives to deliver sustained profitability and cash flow, while remaining ready to capture opportunities when the spending cycle improves, positioning Stratasys to deliver outsized shareholder value.”
Dr. Zeif continued, “During the quarter we achieved strong consumables sales, and strengthened our market position with the addition of leading products, including the H350 version 1.5 printer, the J5 Digital Anatomy printer, and many exciting new software offerings. We understand the importance of a disciplined approach to balancing investment in innovation with staying focused on delivering the most impactful additive manufacturing applications to our customers and value to shareholders.”
2024 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 updating its outlook for the full year 2024 as follows:
- Revenue of $570 million to $580 million.
- Third quarter revenue slightly higher than second quarter revenue.
- Non-GAAP gross margin of 48.7% to 49.0%.
- Operating expenses of $276 million to $278 million.
- Non-GAAP operating margin of 0.5% to 1.0%.
- GAAP net loss of $106 million to $91 million, or ($1.50) to ($1.29) per diluted share.
- Includes one-time extraordinary costs associated with Stratasys’ strategic alternatives process.
- Non-GAAP net income of $1 million to $4 million, or $0.01 to $0.05 per diluted share.
- Adjusted EBITDA of $24 million to $27 million.
- Capital expenditures of $20 million to $25 million.
Non-GAAP earnings guidance excludes $30 million to $32 million of share-based compensation expense, $25 million to $27 million of projected amortization of intangible assets, and reorganization and other expenses of $39 million to $45 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. Second Quarter 2024 Webcast and Conference Call Details
The Company plans to webcast its conference call to discuss its second quarter 2024 financial results on Thursday, August 29, 2024, 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=2xc8Kb5W
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.
