Stratasys (SSYS) has introduced its latest innovation, the J5 Digital Anatomy 3D printer, which is designed to meet the rising need for affordable and high-fidelity anatomical models. This advanced printer aims to help hospitals, medical device manufacturers and research institutions improve patient outcomes, streamline their operations and accelerate the time-to-market for new products.Key benefits of the J5 Digital Anatomy printer include enhanced surgical planning through the production of life-like and ...

Stratasys (SSYS) could be a solid choice for investors given its recent upgrade to a Zacks Rank #2 (Buy). This rating change essentially reflects an upward trend in earnings estimates -- one of the most powerful forces impacting stock prices.The sole determinant of the Zacks rating is a company's changing earnings picture. The Zacks Consensus Estimate -- the consensus of EPS estimates from the sell-side analysts covering the stock -- for the current and following years is tracked by the system.Individual in ...

Core Viewpoint - Stratasys is experiencing ongoing losses and declining revenue primarily due to a challenging macroeconomic environment, rather than company-specific issues. The stock has seen a decline of over 30% year-to-date, and while the company is managing to reduce cash burn and maintain a healthy balance sheet, the outlook remains cautious [1][2][9]. Market Conditions - The additive manufacturing sector, including Stratasys, is facing a constrained customer capital expenditure environment, leading to delays in purchases and longer sales cycles. This trend is expected to persist throughout 2024 [1][4]. - Stratasys believes it is gaining market share despite flat revenue outside of divestitures, with a modest improvement in sales cycles reported in Q1 [1][4]. Business Updates - Stratasys has launched new products aimed at mass production, including the F3300, which offers double the throughput of standard FDM systems and targets high-end markets. Initial orders have exceeded expectations, with significant revenue anticipated in the second half of the year [4]. - The company has also introduced the H350 version 1.5 and new materials for FDM, expanding applications in industries such as aerospace and medical [4]. Financial Analysis - In Q1, Stratasys generated $144 million in revenue, a decline of 3.5% year-over-year, with product revenue down approximately 2%. System revenue fell roughly 19% year-over-year, while consumables revenue increased by about 10% [5]. - The company expects revenue in 2024 to be between $630 million and $645 million, representing approximately 1.6% growth at the midpoint, although skepticism exists regarding achieving this target due to ongoing macroeconomic challenges [5][9]. Profitability and Cash Flow - Stratasys' gross profit margins have remained stable, supported by strong consumables revenue. Operating expenses increased by roughly 7% year-over-year, impacting profitability, but the company generated $7 million in cash from operations and was free cash flow positive in Q1 [7][9]. - The company maintains around $160 million in cash and cash equivalents, providing flexibility amid ongoing challenges [9]. Acquisition Offer - An acquisition offer from Nano Dimension remains on the table, providing a potential safety net for Stratasys if business struggles continue. The offer represents a significant premium compared to the current share price [10].

Core Insights - Stratasys (SSYS) is enhancing its additive manufacturing capabilities through regular updates, indicating strong long-term prospects for the company [1][2] - The company has established a new Fused Deposition Modeling (FDM) standard with the release of the F3300, achieving up to 2X throughput compared to standard FDM [1] - Stratasys has launched new products and software aimed at improving efficiency and expanding material options in additive manufacturing [4][5] Financial Projections - For 2024, management projects revenues between $630 million and $645 million, with non-GAAP earnings per share expected to be in the range of 12-19 cents [3] - The Zacks Consensus Estimate for Stratasys' 2024 revenues is $634.66 million, reflecting a year-over-year growth of 1.13% [3] - The consensus estimate for 2024 earnings is 15 cents per share, indicating a year-over-year growth of 36.36% [3] Product Innovations - The introduction of SAF HighDef Printing capabilities and the H350 V1.5 printer aims to enhance precision and detail in additive manufacturing, particularly for aerospace, automotive, and healthcare sectors [4] - The Direct-to-Garment solution for the J850 TechStyle printer allows full-color multi-material 3D printing directly on garments, promoting customization and sustainability [4] - The validation of Somos NeXt resin for NEO stereolithography printers expands material options for automotive and consumer products [2] Market Position and Competition - Stratasys holds a 7% market share in the additive manufacturing sector, significantly lower than competitors like Seiko Epson (33%), Konica Minolta (19%), and Hewlett Packard Enterprise (5%) [6] - The company has faced a 32.3% decline in share price year-to-date, contrasting with the 19.3% growth of the Zacks Computer and Technology sector, attributed to intense competition [5] Customer Engagement - Stratasys has established an Industrial Customer Advisory Board to gather feedback and insights from customers, aimed at fostering innovation in the additive manufacturing sector [6]

Core Viewpoint - Stratasys reported a narrower loss in Q1 2024 compared to expectations, but revenues declined year over year, missing consensus estimates due to divestitures and unfavorable currency impacts [1][2]. Financial Performance - The company recorded a loss of 2 cents per share, better than the Zacks Consensus Estimate of a loss of 4 cents, and non-GAAP earnings were 2 cents per share in the same quarter last year [1]. - Revenues decreased by 3.5% year over year to $144.05 million, falling short of the consensus mark by 2.36% [1]. - Product revenues fell by 1.8% to $99.19 million, with System revenues down 18.7% to $32.9 million, while Consumables revenues increased by 9.6% to $66.3 million [2]. - Service revenues decreased by 7.3% to $44.9 million, although Customer Support revenues rose by 3.3% to $31.2 million [2]. - Non-GAAP gross profit decreased by 0.9% to $70.03 million, with a gross margin expansion of 130 basis points to 48.6% [2]. - Non-GAAP operating expenses increased by 2.9% to $71.2 million, leading to a non-GAAP operating loss of $1.2 million compared to a profit of $1.5 million in the prior year [2]. - Adjusted EBITDA fell by 41.4% to $4.1 million [2]. Balance Sheet & Cash Flow - At the end of Q4, Stratasys had cash and short-term deposits of $184.5 million, unchanged from the previous quarter [3]. - The company reported an operating cash flow utilization of $7.7 million, down from $18.1 million in the prior-year quarter [3]. 2024 Outlook - For 2024, Stratasys projects revenues between $630 million and $645 million, with non-GAAP earnings per share expected in the range of 12-19 cents [4]. - The company anticipates a gross margin between 49% and 49.5%, and a non-GAAP operating margin of 2.5-3.5% [4]. - Operating expenses are estimated to be between $292 million and $297 million, with adjusted EBITDA projected at $40-$45 million [4].

Revenue Performance - Fourth quarter revenue of $156.3 million, 1.3% higher than Q4 2022 excluding divestitures, and 1.9% lower than actual Q4 2022 revenues[1] - Full year revenue of $627.6 million, 1.3% higher than 2022 excluding divestitures, and 3.7% lower than actual full year 2022 revenues[1] - Total revenues for the twelve months ended December 31, 2023, were $627,598 thousand, down from $651,483 thousand in 2022, a decrease of 3.7%[20] - 2024 revenue outlook of $630 million to $645 million, improving sequentially through the year[6] Net Income and Loss - Fourth quarter GAAP net loss of $15.0 million, or $0.22 per diluted share, and non-GAAP net income of $1.6 million, or $0.02 per diluted share[1] - Full year GAAP net loss of $123.1 million, or $1.79 per diluted share, and non-GAAP net income of $7.7 million, or $0.11 per diluted share[1] - Net loss for the twelve months ended December 31, 2023, was $123,074 thousand, compared to a net loss of $28,974 thousand in 2022, a substantial increase in loss[20] - Net income for 2023 under GAAP was a loss of $123,074 million, but Non-GAAP adjustments resulted in a profit of $7,709 million[22] - For 2024, the company expects a GAAP net loss of $88 to $72 million, but Non-GAAP adjustments are projected to result in a net income of $9 to $14 million[24] - The company anticipates a GAAP loss per share of $1.24 to $1.01 for 2024, with Non-GAAP diluted earnings per share expected to be $0.12 to $0.19[24] Gross Margin - Fourth quarter GAAP gross margin of 44.7%, compared to 43.1% in Q4 2022[3] - Full year GAAP gross margin of 42.5%, compared to 42.4% in 2022[4] - 2024 full year gross margins expected to be 49.0%-49.5%, improving sequentially[7] - Gross profit for the twelve months ended December 31, 2023, was $267,024 thousand, down from $276,467 thousand in 2022, a decrease of 3.4%[20] - Gross profit for 2023 was $267,024 million under GAAP, with Non-GAAP adjustments adding $35,764 million, resulting in a total Non-GAAP gross profit of $302,788 million[22] Operating Income and Expenses - Operating income (loss) for the twelve months ended December 31, 2023, was a loss of $87,580 thousand, compared to a loss of $57,159 thousand in 2022, a worsening of 53%[20] - Operating income for 2023 under GAAP was a loss of $87,580 million, but Non-GAAP adjustments turned this into a profit of $12,627 million[22] - Research and development expenses increased from $92,876 thousand in 2022 to $94,425 thousand in 2023, reflecting a 1.7% rise[20] - Selling, general, and administrative expenses rose from $240,750 thousand in 2022 to $260,179 thousand in 2023, an increase of approximately 8%[20] - Stock-based compensation expense for 2024 is projected to be between $29 and $31 million[24] - Intangible assets amortization expense for 2024 is expected to range from $26 to $28 million[24] - Reorganization and other expenses for 2024 are estimated to be between $29 and $35 million[24] - Tax expense related to Non-GAAP adjustments for 2024 is forecasted to be $2 to $3 million[24] Financial Position - Total assets decreased from $1,259,790 thousand in 2022 to $1,133,905 thousand in 2023, a decline of approximately 10%[17] - Cash and cash equivalents dropped significantly from $150,470 thousand in 2022 to $82,585 thousand in 2023, a reduction of about 45%[17] - Total current liabilities decreased from $210,654 thousand in 2022 to $176,426 thousand in 2023, a reduction of about 16%[17] - Accumulated deficit increased from $2,076,852 thousand in 2022 to $2,199,926 thousand in 2023, indicating a growing financial shortfall[18]

Financial Data and Key Metrics - Consolidated revenue for Q1 2024 was $144.1 million, down 3.5% YoY, but relatively flat excluding divestitures [17] - Product revenue was $99.2 million, down 0.9% YoY excluding divestitures, with system revenue declining 17.8% and consumables revenue growing 9.6% to $66.3 million [17][18] - Service revenue was $44.9 million, up 1.8% YoY excluding divestitures, with customer support revenue up 3.3% [18] - GAAP gross margin improved to 44.4% from 43.8% YoY, while non-GAAP gross margin increased to 48.6% from 47.3% [19] - GAAP operating loss was $24.5 million, compared to a loss of $16.8 million YoY, while non-GAAP operating loss was $1.2 million, compared to income of $1.5 million YoY [20] - GAAP net loss was $26 million, or $0.37 per diluted share, compared to a net loss of $22.2 million, or $0.33 per diluted share YoY [20] - Adjusted EBITDA was $4.1 million, down from $7 million YoY, with $7.3 million generated from operating cash flow and $4.3 million in free cash flow [21] Business Line Performance - Consumables revenue reached a record high of $66.3 million, reflecting strong system utilization and customer reliance on 3D printing for manufacturing applications [9][18] - The F3300, a new industrial 3D printing system, has seen growing sales momentum with key customers like Toyota, BAE Systems, Sikorsky, and Nissan [11][12] - The company introduced new SAF HighDef printing capabilities with the H350 version 1.5, expanding manufacturing applications [12] Market Performance - The company maintained stability in a challenging macroeconomic environment, with flat YoY revenue excluding divestitures and increased market share over the past three years [9][39] - The F3300 pipeline is strong, with accelerating interest and engagement levels, and orders surpassing expectations in the first half of 2024 [12] Strategy and Industry Competition - The company is focused on driving innovation in additive manufacturing, with investments in technology, sales channels, and partnerships to support long-term industry leadership [15] - The F3300 is positioned as a disruptive technology in the high-end, large-part FDM market, offering double the speed and throughput at half the cost [53] - The company is leveraging its ESG leadership and sustainability initiatives to support customer decarbonization and supply chain optimization [13][14] Management Commentary on Operating Environment and Future Outlook - Management highlighted the resilience of the business model despite constrained capital spending across the industry, with strong consumables performance and system utilization [9][10] - The company expects the challenging macroeconomic environment to persist in 2024, with delayed purchases and longer sales cycles, but anticipates sequential revenue growth in the second half of the year [22][23] - Full-year 2024 guidance includes revenue of $630 million to $645 million, gross margins of 49% to 49.5%, and adjusted EBITDA of $40 million to $45 million [23][24] Other Key Information - The company promoted Amir Kleiner to COO, strengthening the connection between customer success and operations [13] - Stratasys published its second ESG and sustainability report, emphasizing its commitment to environmental impact, employee health, diversity, and governance [13][14] - The company is conducting a strategic review to maximize shareholder value, with updates to be provided when appropriate [16] Q&A Session Summary Question: Q2 seasonality and F3300 revenue impact [27] - Q2 revenue is expected to show slight improvement sequentially, with F3300 revenue becoming more significant in the second half of the year [28][30] Question: Long-term deferred revenue trends [31] - No specific trend in long-term deferred revenue, with fluctuations due to contract mix [32] Question: Strategic review update [33] - The company is making progress on the strategic review but cannot share details until it culminates [34] Question: Sales cycle and market visibility [37] - Sales cycles are stabilizing, with no significant improvement yet, but the company is leveraging new products like the F3300 to drive engagement [38] Question: Covestro's contribution to consumables growth [40] - Covestro contributed $4 million to $5 million per quarter, with overall consumables growth driven by higher system utilization [41][42] Question: F3300 consumables usage [47] - The F3300 is designed for high-performance materials and high utilization, targeting manufacturing applications with large parts [48] Question: F3300 order performance and mid-market opportunities [50][52] - F3300 orders have surpassed expectations, with strong interest from blue-chip customers and traction in the mid-market for manufacturing applications [51][53] Question: Customer engagement trends [55] - Customer engagement has become more specific, focusing on application requirements and the value of additive manufacturing [56][57] Question: Key focus areas for the second half of 2024 [58] - The industry should focus on delivering real value through reliable machines, materials, and software, with Stratasys well-positioned to lead [59][60] Question: System shipment trends [61] - System shipments are a mix of replacements, fleet expansions, and new customers, with a strong install base supporting sales even in tough times [62] Question: Outlook assumptions on customer CapEx [63] - The outlook assumes no significant change in customer CapEx patterns, based on current visibility [64]

Stratasys (SSYS) came out with a quarterly loss of $0.02 per share versus the Zacks Consensus Estimate of a loss of $0.04. This compares to earnings of $0.02 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 50%. A quarter ago, it was expected that this maker of 3D printers would post earnings of $0.04 per share when it actually produced earnings of $0.02, delivering a surprise of -50%.Over the last four quarters, the company ha ...

Company Overview - Stratasys (SSYS) has launched its Direct-to-Garment (D2G) solution for the J850 TechStyle 3D printer, merging personalized fashion with sustainability [1] - The D2G solution allows full-color and multi-material 3D prints directly on assembled garments made from various fabrics, catering to the demand for customization in the fashion industry [1][2] Product Innovation - The D2G tray kits come in two sizes, enabling personalization of garments and promoting sustainable practices by reducing material waste [2] - The Urban Tattoo collection, showcasing the collaboration with designers, transforms ordinary garments into unique pieces of wearable art [2][3] Market Context - The 3D printing market is projected to grow at a compound annual growth rate of 23.5% from 2024 to 2030, valued at $20.37 billion in 2023 [4] - Stratasys shares have decreased by 30.3% year to date, contrasting with the Zacks Computer and Technology sector's 9% growth [4] Competitive Landscape - Stratasys faces competition from companies like Altair Engineering, Xometry, and 3D Systems, which have advanced capabilities and extensive networks [5] - Altair Engineering's partnership with Gen3D enhances its 3D printing capabilities, posing a challenge to Stratasys [5] Financial Outlook - The Zacks Consensus Estimate for Stratasys' 2024 revenues is $637.64 million, indicating a year-over-year growth of 1.6% [7] - The consensus estimate for 2024 earnings is 15 cents per share, reflecting a year-over-year growth of 36.36% [7] Strategic Direction - To maintain competitiveness, Stratasys must continue to innovate and diversify its offerings, as demonstrated by the D2G solution and Urban Tattoo collection [6]

Stratasys (SSYS) has entered into an agreement to be the exclusive polymer 3D printing partner of Select Additive Technologies, a division of Morris Group, Inc. and a major player in machine tool distribution in the United States.With more than 80 years of experience in serving the metalworking industry, Select Additive is well-equipped to help manufacturers transition from traditional metal removal methods to the rapidly advancing world of additive manufacturing. This partnership will provide Select Additi ...