Stratasys(SSYS)

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Stratasys(SSYS) - 2021 Q3 - Quarterly Report
2021-11-03 16:00
[Consolidated Balance Sheets](index=3&type=section&id=Consolidated%20Balance%20Sheets) The company's financial position strengthened with notable growth in total assets and equity Balance Sheet Highlights (September 30, 2021 vs. December 31, 2020) | Metric | Sep 30, 2021 (in thousands) | Dec 31, 2020 (in thousands) | Change (Absolute) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Cash and cash equivalents | $332,871 | $272,092 | $60,779 | 22.34% | | Short-term deposits | $187,000 | $27,000 | $160,000 | 592.59% | | Total current assets | $797,595 | $560,492 | $237,103 | 42.30% | | Total assets | $1,228,012 | $990,002 | $238,010 | 24.04% | | Accounts payable | $48,292 | $16,987 | $31,305 | 184.29% | | Total current liabilities | $172,768 | $132,154 | $40,614 | 30.73% | | Total liabilities | $277,559 | $230,407 | $47,152 | 20.46% | | Total equity | $950,453 | $759,368 | $191,085 | 25.16% | [Consolidated Statements of Operations and Comprehensive Loss](index=4&type=section&id=Consolidated%20Statements%20of%20Operations%20and%20Comprehensive%20Loss) Revenue grew while operating and net losses significantly narrowed for the three and nine months ended September 30, 2021 Key Financial Performance (Three Months Ended Sep 30) | Metric | 2021 (in thousands) | 2020 (in thousands) | Change (Absolute) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Revenues | $159,009 | $127,892 | $31,117 | 24.33% | | Gross profit | $68,188 | $49,769 | $18,419 | 37.01% | | Operating loss | $(21,919) | $(404,290) | $382,371 | -94.58% | | Net loss | $(18,076) | $(405,066) | $386,990 | -95.54% | | Net loss per ordinary share (basic and diluted) | $(0.28) | $(7.35) | $7.07 | -96.19% | Key Financial Performance (Nine Months Ended Sep 30) | Metric | 2021 (in thousands) | 2020 (in thousands) | Change (Absolute) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Revenues | $440,203 | $378,422 | $61,781 | 16.33% | | Gross profit | $187,035 | $153,375 | $33,660 | 21.95% | | Operating loss | $(63,001) | $(453,468) | $390,467 | -86.11% | | Net loss | $(57,146) | $(454,805) | $397,659 | -87.43% | | Net loss per ordinary share (basic and diluted) | $(0.91) | $(8.29) | $7.38 | -89.02% | [Consolidated Statements of Changes in Equity](index=5&type=section&id=Consolidated%20Statements%20of%20Changes%20in%20Equity) Total equity increased substantially, primarily driven by a public share offering and stock-based compensation Equity Changes (December 31, 2020 to September 30, 2021) | Metric | Dec 31, 2020 (in thousands) | Sep 30, 2021 (in thousands) | Change (Absolute) | | :--- | :--- | :--- | :--- | | Ordinary Shares | $155 | $182 | $27 | | Additional Paid-In Capital | $2,753,955 | $3,001,685 | $247,730 | | Accumulated Deficit | $(1,985,896) | $(2,043,042) | $(57,146) | | Accumulated Other Comprehensive Loss | $(8,846) | $(8,372) | $474 | | Total Equity | $759,368 | $950,453 | $191,085 | - Key drivers of equity increase for the nine months ended September 30, 2021, include a **public offering of ordinary shares, net ($218,875 thousand)**, and significant stock-based compensation ($7,205 thousand in Q1, $7,977 thousand in Q2, $7,958 thousand in Q3)[7](index=7&type=chunk)[8](index=8&type=chunk) [Consolidated Statements of Cash Flows](index=7&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Cash flow from operations and financing activities increased, while investing activities saw significant cash outflow Cash Flow Summary (Nine Months Ended Sep 30) | Cash Flow Activity | 2021 (in thousands) | 2020 (in thousands) | Change (Absolute) | | :--- | :--- | :--- | :--- | | Net cash provided by operating activities | $31,396 | $4,104 | $27,292 | | Net cash used in investing activities | $(191,166) | $(44,246) | $(146,920) | | Net cash provided by financing activities | $222,955 | $53 | $222,902 | | Net change in cash, cash equivalents and restricted cash | $60,772 | $(40,573) | $101,345 | | Cash, cash equivalents and restricted cash, end of period | $332,988 | $253,024 | $79,964 | - Key investing activities for the nine months ended September 30, 2021, included **investments in short-term bank deposits ($249,000 thousand)**, cash paid for acquisitions, net of cash acquired ($6,669 thousand), and purchase of property and equipment ($16,193 thousand)[12](index=12&type=chunk) - The primary financing activity for the nine months ended September 30, 2021, was **$218,850 thousand in proceeds from a public offering**, net of issuance costs[12](index=12&type=chunk) [Notes to Condensed Consolidated Interim Financial Statements](index=8&type=section&id=Notes%20to%20Condensed%20Consolidated%20Interim%20Financial%20Statements) These notes detail accounting policies, acquisitions, revenue, and other key financial statement components [1. Business Description and Basis of Presentation](index=8&type=section&id=Note%201.%20Business%20Description%20and%20Basis%20of%20Presentation) Stratasys Ltd is a global leader in polymer-based 3D printing solutions for manufacturing across various industries - Stratasys is a global leader in connected, polymer-based 3D printing solutions, leveraging approximately **1,600 granted and pending additive technology patents**, with a focus on manufacturing for industries including aerospace, automotive, healthcare, and dental[14](index=14&type=chunk) - The financial statements are unaudited and prepared in conformity with **U.S. GAAP**, requiring estimates based on current and, for some estimates, future economic and market conditions[14](index=14&type=chunk) - Accounting estimates and assumptions may change over time in response to the uncertain and rapidly changing **COVID-19 pandemic**, potentially impacting asset valuation, inventory valuation, tax rate, and credit loss allowances[14](index=14&type=chunk) [2. New Accounting Pronouncements](index=8&type=section&id=Note%202.%20New%20Accounting%20Pronouncements) The Company adopted new FASB guidance on income tax accounting with no material impact on its financial statements - Stratasys adopted new FASB guidance to simplify income tax accounting effective **January 1, 2021**[15](index=15&type=chunk) - The adoption of this new guidance had **no material impact** on the Company's consolidated financial statements[15](index=15&type=chunk) [3. Certain Transactions](index=9&type=section&id=Note%203.%20Certain%20Transactions) Stratasys completed several strategic acquisitions to expand its leadership in 3D printing technologies [Origin Acquisition](index=9&type=section&id=Origin%20acquisition) - On December 31, 2020, Stratasys acquired 3D printing start-up Origin Laboratories Inc for an aggregate purchase price of **$97.1 million** to expand its leadership in the mass production parts market with next-generation photopolymer (P3) technology[16](index=16&type=chunk)[17](index=17&type=chunk) Origin Acquisition Consideration | Component | Amount (U.S. $ in thousands) | | :--- | :--- | | Cash payments | $33,025 | | Issuance of ordinary shares | $26,636 | | Contingent consideration (estimated fair value) | $37,400 | | **Total Consideration** | **$97,061** | - Contingent consideration could reach a **maximum of $40 million**, with approximately 50% settled in cash and 50% in ordinary shares, based on performance-based earn-outs over 3 years[19](index=19&type=chunk) - An additional **$6 million payment**, subject to founders' retention, is recorded as compensation expense over 3 years, with $1.1 million and $3.3 million recognized for the three and nine months ended September 30, 2021, respectively[20](index=20&type=chunk) - The preliminary allocation of the purchase price resulted in the recognition of **$38.1 million in goodwill** and **$71.1 million in developed technology intangible assets** with a 10-year useful life[22](index=22&type=chunk) [XAAR Acquisition](index=10&type=section&id=XAAR%20acquisition) - On November 1, 2021, Stratasys acquired the remaining **55% share of XAAR 3D** for an aggregate purchase price of **$33.8 million**, including cash and additional earn-out payments and royalties for up to 15 years[23](index=23&type=chunk) [RPS Acquisition](index=10&type=section&id=RPS%20acquisition) - On February 16, 2021, Stratasys acquired RP Support Limited (RPS), a provider of industrial stereolithography 3D printers, with consideration including cash upon closing and performance-based earn-out payments over two years[24](index=24&type=chunk) [Marketable Equity Investment](index=10&type=section&id=Marketable%20equity%20investment) - The Company recognized **revaluation losses of $2.0 million and $1.2 million** for the three and nine months ended September 30, 2021, respectively, after an equity investment became public and was reclassified[24](index=24&type=chunk) [4. Revenues](index=11&type=section&id=Note%204.%20Revenues) Stratasys' revenues increased across all geographical regions for both products and services [Disaggregation of Revenues](index=11&type=section&id=Disaggregation%20of%20Revenues) Revenues by Geographical Region (Three Months Ended Sep 30) | Region | 2021 (in thousands) | 2020 (in thousands) | Change (Absolute) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Americas | $103,572 | $86,597 | $16,975 | 19.60% | | EMEA | $34,061 | $23,248 | $10,813 | 46.51% | | Asia Pacific | $21,376 | $18,047 | $3,329 | 18.45% | | **Total** | **$159,009** | **$127,892** | **$31,117** | **24.33%** | Revenues by Geographical Region (Nine Months Ended Sep 30) | Region | 2021 (in thousands) | 2020 (in thousands) | Change (Absolute) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Americas | $278,634 | $251,871 | $26,763 | 10.63% | | EMEA | $95,502 | $71,083 | $24,419 | 34.35% | | Asia Pacific | $66,067 | $55,468 | $10,599 | 19.11% | | **Total** | **$440,203** | **$378,422** | **$61,781** | **16.33%** | Revenues by Timing of Recognition (Nine Months Ended Sep 30) | Recognition Type | 2021 (in thousands) | 2020 (in thousands) | Change (Absolute) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Point in time (Products) | $299,517 | $240,597 | $58,920 | 24.49% | | Point in time (Services) | $33,781 | $29,809 | $3,972 | 13.32% | | Over time (Services) | $106,905 | $108,016 | $(1,111) | -1.03% | | **Total** | **$440,203** | **$378,422** | **$61,781** | **16.33%** | [Contract Assets and Contract Liabilities](index=12&type=section&id=Contract%20Assets%20and%20Contract%20Liabilities) Deferred Revenues | Metric | Sep 30, 2021 (in thousands) | Dec 31, 2020 (in thousands) | Change (Absolute) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Deferred revenue | $67,084 | $63,392 | $3,692 | 5.83% | - Revenue recognized in 2021 that was included in the deferred revenue balance as of December 31, 2020, amounted to **$9.7 million** for the three months and **$41.8 million** for the nine months ended September 30, 2021[32](index=32&type=chunk) [Remaining Performance Obligations](index=12&type=section&id=Remaining%20Performance%20Obligations) - As of September 30, 2021, total Remaining Performance Obligations (RPO) amounted to **$121.4 million**[33](index=33&type=chunk) - The Company expects to recognize **$102.1 million** of this RPO during the next 12 months, **$10.8 million** over the subsequent 12 months, and the remaining **$8.6 million** thereafter[33](index=33&type=chunk) [Incremental Costs of Obtaining a Contract](index=12&type=section&id=Incremental%20Costs%20of%20Obtaining%20a%20Contract) - Sales commissions for initial service type warranty contracts are deferred and amortized over the expected customer relationship period, with deferred commissions amounting to **$6.6 million** as of September 30, 2021[34](index=34&type=chunk) [5. Inventories](index=13&type=section&id=Note%205.%20Inventories) Total inventories decreased, primarily due to a reduction in finished goods and raw materials Inventory Composition | Component | Sep 30, 2021 (in thousands) | Dec 31, 2020 (in thousands) | Change (Absolute) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Finished goods | $53,576 | $61,297 | $(7,721) | -12.60% | | Work-in-process | $3,734 | $3,163 | $571 | 18.05% | | Raw materials | $62,615 | $67,212 | $(4,597) | -6.84% | | **Total** | **$119,925** | **$131,672** | **$(11,747)** | **-8.92%** | [6. Goodwill and Other Intangible Assets](index=13&type=section&id=Note%206.%20Goodwill%20and%20Other%20Intangible%20Assets) Goodwill increased due to acquisitions, while other intangible assets decreased due to amortization [Goodwill](index=13&type=section&id=Goodwill) Goodwill Changes (Nine Months Ended Sep 30, 2021) | Metric | Amount (U.S. $ in thousands) | | :--- | :--- | | Goodwill as of January 1, 2021 | $35,694 | | Goodwill acquired (RPS acquisition) | $1,716 | | Measurement period adjustments | $2,400 | | Foreign currency translation adjustments | $(60) | | **Goodwill as of September 30, 2021** | **$39,750** | - In the third quarter of 2020, a **goodwill impairment charge of $386.2 million** was recorded for the Stratasys-Objet reporting unit, driven by business reduction and market capitalization decline due to COVID-19 impacts[40](index=40&type=chunk)[41](index=41&type=chunk)[42](index=42&type=chunk) [Other Intangible Assets](index=14&type=section&id=Other%20Intangible%20Assets) Other Intangible Assets (September 30, 2021 vs. December 31, 2020) | Asset Type | Sep 30, 2021 Net Book Value (in thousands) | Dec 31, 2020 Net Book Value (in thousands) | Change (Absolute) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Developed technology | $88,942 | $97,740 | $(8,798) | -9.00% | | Patents | $9,174 | $9,212 | $(38) | -0.41% | | Trademarks and trade names | $4,094 | $4,922 | $(828) | -16.82% | | Customer relationships | $14,800 | $19,694 | $(4,894) | -24.85% | | Capitalized software development costs | $0 | $0 | $0 | 0.00% | | **Total** | **$117,010** | **$131,568** | **$(14,558)** | **-11.06%**| Estimated Amortization Expense | Period | Estimated Amortization Expense (U.S. $ in thousands) | | :--- | :--- | | Remaining 3 months of 2021 | $8,213 | | 2022 | $30,765 | | 2023 | $16,166 | | 2024 | $12,251 | | 2025 and thereafter | $49,615 | | **Total** | **$117,010** | [7. Net Loss Per Share](index=14&type=section&id=Note%207.%20Net%20Loss%20Per%20Share) Net loss per share significantly improved compared to the prior year due to a reduced net loss Net Loss Per Share (Basic and Diluted) | Period | 2021 EPS | 2020 EPS | Change (Absolute) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Three Months Ended Sep 30 | $(0.28)$ | $(7.35)$ | $7.07 | -96.19% | | Nine Months Ended Sep 30 | $(0.91)$ | $(8.29)$ | $7.38 | -89.02% | - The weighted average ordinary shares outstanding for basic and diluted net loss per share for the nine months ended September 30, 2021, was **62,888 thousand**, compared to 54,851 thousand in 2020[46](index=46&type=chunk) [8. Income Taxes](index=16&type=section&id=Note%208.%20Income%20Taxes) The Company recognized income tax benefits influenced by Israel's tax regime and geographic mix of earnings - Stratasys reported an **income tax benefit of $0.7 million** for the three months ended September 30, 2021 (vs $0.3 million in 2020) and **$6.0 million** for the nine months ended September 30, 2021 (vs $2.3 million in 2020)[49](index=49&type=chunk) - The effective tax rate was primarily impacted by the transition to the new Israeli **"Preferred Technology Enterprise" tax regime (12% tax rate)**, different geographic mixes of earnings and losses, and a valuation allowance on losses of the Company's US subsidiaries[49](index=49&type=chunk) [9. Fair Value Measurements](index=16&type=section&id=Note%209.%20Fair%20Value%20Measurements) Stratasys measures certain financial instruments at fair value, including derivatives and contingent consideration Fair Value Measurements (September 30, 2021) | Instrument | Classification | Fair Value (U.S. $ in thousands) | | :--- | :--- | :--- | | Foreign exchange forward contracts (not designated as hedging) | Level 2 | $67 | | Foreign exchange forward contracts (designated as hedging) | Level 2 | $634 | | Contingent consideration | Level 3 | $40,589 | - Foreign exchange forward contracts are classified as **Level 2**, valued using observable market inputs, while contingent consideration is classified as **Level 3**, based on significant unobservable inputs[50](index=50&type=chunk) [10. Derivative Instruments and Hedging Activities](index=17&type=section&id=Note%2010.%20Derivative%20instruments%20and%20hedging%20activities) Stratasys uses foreign currency derivatives to manage global market risks and reduce earnings volatility [Foreign Exchange Contracts Not Designated as Hedging Instruments](index=17&type=section&id=Foreign%20exchange%20contracts%20not%20designated%20as%20hedging%20instruments) - As of September 30, 2021, the notional amounts of outstanding foreign exchange forward contracts not designated as hedging instruments were **$44.2 million**[54](index=54&type=chunk) - A **gain of $0.9 million** was recognized under financial income (expenses), net, for the three months ended September 30, 2021, partially offsetting foreign currency revaluation changes[54](index=54&type=chunk) [Cash Flow Hedging - Payroll and Operating Expenses](index=17&type=section&id=Cash%20Flow%20Hedging%20-%20Hedges%20of%20forecasted%20foreign%20currency%20payroll%20and%20other%20operating%20expenses) - As of September 30, 2021, foreign exchange forward contracts for the conversion of **$6.4 million into NIS** were in effect as cash flow hedges to reduce exposure to variability in NIS-denominated expenses[55](index=55&type=chunk) [Cash Flow Hedging - Revenue](index=17&type=section&id=Cash%20Flow%20Hedging%20-%20Hedges%20of%20forecasted%20foreign%20currency%20revenue) - As of September 30, 2021, foreign exchange forward contracts for the conversion of **12.0 million Euro into U.S. dollars** were in effect as cash flow hedges for forecasted foreign currency revenue[56](index=56&type=chunk) [11. Equity](index=18&type=section&id=Note%2011.%20Equity) Equity changes were driven by stock-based compensation, a public offering, and foreign currency adjustments [Stock-Based Compensation Plans](index=18&type=section&id=Stock-based%20compensation%20plans) Stock-Based Compensation Expenses (Nine Months Ended Sep 30) | Category | 2021 (in thousands) | 2020 (in thousands) | Change (Absolute) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Cost of revenues | $2,227 | $1,370 | $857 | 62.55% | | Research and development, net | $5,058 | $3,764 | $1,294 | 34.38% | | Selling, general and administrative | $15,855 | $10,623 | $5,232 | 49.25% | | **Total** | **$23,140** | **$15,757** | **$7,383** | **46.86%** | Stock Options Activity (Nine Months Ended Sep 30, 2021) | Metric | Number of Options | Weighted Average Exercise Price | | :--- | :--- | :--- | | Options outstanding as of Jan 1, 2021 | 2,102,529 | $28.06 | | Granted | 46,366 | $3.15 | | Exercised | (209,819) | $20.05 | | Forfeited | (40,548) | $41.82 | | Options outstanding as of Sep 30, 2021 | 1,898,528 | $28.04 | RSUs and PSUs Activity (Nine Months Ended Sep 30, 2021) | Metric | Number of RSUs and PSUs | Weighted Average Grant Date Fair Value | | :--- | :--- | :--- | | Unvested as of Jan 1, 2021 | 2,801,116 | $21.08 | | Granted | 1,272,386 | $33.91 | | Vested | (709,434) | $21.88 | | Forfeited | (284,276) | $21.98 | | Unvested as of Sep 30, 2021 | 3,079,792 | $26.11 | - As of September 30, 2021, unrecognized compensation cost for unvested equity-classified stock options was **$2.5 million** (expected over 3.2 years), and for RSUs and PSUs was **$60 million** (expected over 2.34 years)[60](index=60&type=chunk)[63](index=63&type=chunk) [Accumulated Other Comprehensive Loss](index=19&type=section&id=Accumulated%20other%20comprehensive%20loss) Changes in AOCI (Nine Months Ended Sep 30, 2021) | Component | Jan 1, 2021 Balance (in thousands) | Other Comprehensive Income (Loss) (in thousands) | Sep 30, 2021 Balance (in thousands) | | :--- | :--- | :--- | :--- | | Unrealized Gain (Loss) on Cash Flow Hedges | $(1,673) | $2,579 | $906 | | Foreign Currency Translation Adjustments | $(7,173) | $(2,105) | $(9,278) | | **Total** | **$(8,846)** | **$474** | **$(8,372)** | [Public Offering of Ordinary Shares](index=20&type=section&id=Public%20offering%20of%20ordinary%20shares) - In March 2021, Stratasys completed a public offering of 7,931,034 ordinary shares, raising **$218.9 million net** of underwriting discounts and offering expenses[69](index=69&type=chunk) [12. Contingencies](index=20&type=section&id=Note%2012.%20Contingencies) Stratasys has provisioned for a preliminary settlement and faces other legal proceedings not expected to be significant - Subsequent to September 30, 2021, the Company reached a **preliminary settlement on an employee-related matter** in the US, for which a provision has been included in the third-quarter financial statements[70](index=70&type=chunk) - Management believes that the outcome of various other legal proceedings the Company is party to will **not have a significant effect** on its financial position, profitability, or cash flows[70](index=70&type=chunk)
Stratasys(SSYS) - 2021 Q2 - Earnings Call Presentation
2021-08-07 17:35
Financial Highlights - Second quarter revenue increased by 25% year-over-year to $147 million[8, 21] - Hardware revenue grew by 32% year-over-year[8, 24] - Consumables revenue increased by 39% year-over-year[8, 24] - Generated $5.6 million in operating cash flow[20] Business Updates - Over 4,500 customers and partners joined the live event on Additive Manufacturing 20 offerings[9] - Customer Hub facilitated over $25 million in orders placed globally in Q2[17] - Customer Hub has over 2,000 customer and partner account activations[17] Financial Outlook - Third quarter 2021 revenue is expected to grow 17%-18% compared to third quarter 2020[42] - Capital expenditures in 2021 are expected to range from $24 million to $30 million[42] Balance Sheet - Balance sheet strengthened to $522.7 million in cash and equivalents[38]
Stratasys(SSYS) - 2021 Q2 - Earnings Call Transcript
2021-08-05 19:59
Stratasys Ltd. (NASDAQ:SSYS) Q2 2021 Earnings Conference Call August 5, 2021 8:30 AM ET Company Participants Yonah Lloyd - CCO and VP, IR Yoav Zeif - CEO Lilach Payorski - CFO Conference Call Participants Shannon Cross - Cross Research Wamsi Mohan - Bank of America Brian Drab - William Blair Noelle Dilts - Stifel Paul Chung - JP Morgan Troy Jensen - Lake Street Capital Markets Jim Ricchiuti - Needham & Company Ananda Baruah - Loop Capital Greg Palm - Craig-Hallum Operator Hello and welcome to Stratasys' Q2 ...
Stratasys Ltd. (SSYS) CEO Yoav Zeif Presents at Stifel 2021 Virtual Cross Sector Insight Conference (Transcript)
2021-06-09 23:29
Summary of Stratasys Ltd. Conference Call Company Overview - **Company**: Stratasys Ltd. (NASDAQ: SSYS) - **Market Cap**: $1.6 billion [2] - **Participants**: - Yoav Zeif - CEO - Lilach Payorski - CFO [1][3] Industry Insights - **Industry**: Additive Manufacturing (3D Printing) - **Current Trends**: Increased activity and interest in the 3D printing industry, with a notable shift from prototyping to production [4][8] - **Technological Evolution**: The additive manufacturing industry has significantly evolved over the past six years, with improvements in accuracy, quality, and cost-effectiveness [5][6] - **Supply Chain Resilience**: The pandemic highlighted the need for flexible and agile production methods, which additive manufacturing can provide [7] Company Strategy and Focus - **Focus on Polymers**: Stratasys is concentrating on the polymer 3D printing market, which is expected to represent 60-65% of overall market demand by 2025 [16][17] - **Technological Leadership**: The company has developed five technologies to address customer needs from prototyping to mass manufacturing [17] - **Recent Acquisitions**: - **Origin**: A DLP machine company that enhances Stratasys's capabilities in manufacturing [26][28] - **RPS**: Known for heavy-duty industrial SLA machines, expanding Stratasys's presence in the medical sector [30] Market Recovery and Growth - **Recovery Dynamics**: The recovery from the pandemic varies by region, with the U.S. recovering faster than Europe and Japan [13][14] - **End Market Performance**: The medical industry is recovering the fastest, followed by aerospace and automotive sectors [14] - **Sales Growth**: Stratasys reported a 41% increase in hardware sales in Q1, driven by a growing installed base [14] Product Innovations - **New Technologies**: Introduction of new systems aimed at manufacturing, expected to drive growth rates above 20% in the coming years [19][20] - **DentaJet and MetaJet**: New dental and medical 3D printers that enhance Stratasys's offerings in the healthcare sector [32][35] Financial Outlook - **Gross Margin Challenges**: The company anticipates continued gross margin headwinds due to global economic constraints and rising material costs [41][43] - **Capital Allocation**: Stratasys has a strong cash position with no debt, allowing for investments in product development and market expansion [45][46] - **Long-term Growth Strategy**: Emphasis on profitable growth through infrastructure scaling and leveraging innovative technologies [48] Key Takeaways - **Inflection Point**: The additive manufacturing industry is at a critical juncture, transitioning towards production capabilities [8] - **Customer Relationships**: Strong long-term relationships with major customers in aerospace and automotive sectors [37][39] - **Future Focus**: Stratasys aims to capitalize on its technological advancements and market position to drive profitable growth over the next three years and beyond [48]
Stratasys(SSYS) - 2021 Q1 - Earnings Call Transcript
2021-05-06 00:22
Stratasys Ltd. (NASDAQ:SSYS) Q1 2021 Earnings Conference Call May 5, 2021 8:30 AM ET Company Participants Yonah Lloyd – Vice President Investor Relations Yoav Zeif – Chief Executive Officer Lilach Payorski – Chief Financial Officer Conference Call Participants Shannon Cross – Cross Research Troy Jensen – Lake Street Capital David Mizrahi – Berenberg Noelle Dilts – Stifel Greg Palm – Craig-Hallum Capital Group Brian Drab – William Blair Wamsi Mohan – Bank of America Ananda Baruah – Loop Capital Markets Opera ...
Stratasys(SSYS) - 2020 Q4 - Earnings Call Transcript
2021-03-01 18:51
Stratasys Ltd. (NASDAQ:SSYS) Q4 2020 Results Earnings Conference Call March 1, 2021 8:30 AM ET Company Participants Yonah Lloyd - Vice President of Investor Relations Yoav Zeif - Chief Executive Officer Lilach Payorski - Chief Financial Officer Conference Call Participants Shannon Cross - Cross Research Ananda Baruah - Loop Capital Markets James Ricchiuti - Needham & Company Noelle Dilts - Stifel Greg Palm - Craig Hallum Capital Group Wamsi Mohan - Bank of America Merrill Lynch Troy Jensen - Lake Street Cap ...