Financial Data and Key Metrics Changes - In Q4 2023, consolidated revenue was $156.3 million, down 1.9% year-over-year, but up 1.3% when adjusted for divestitures [24] - For the full year 2023, consolidated revenue was $628 million, down 3.7% compared to 2022, but up 1.3% when excluding the MakerBot divestiture [10][26] - Adjusted EPS for 2023 was $0.11, with a GAAP net loss of $123.1 million or $1.79 per diluted share [31][32] - GAAP gross margin for Q4 was 44.7%, compared to 43.1% for the same period last year [27] Business Line Data and Key Metrics Changes - Product revenue in Q4 declined by 0.7% to $110.4 million, with system revenue down 13.7% to $47.4 million [24][25] - Consumables revenue reached a record $63 million in Q4, up 11.9% year-over-year, reflecting strong utilization of existing systems [25][41] - Service revenue was $45.9 million for Q4, down 4.6% year-over-year, but grew 3.6% when excluding divestitures [25][26] Market Data and Key Metrics Changes - 34% of revenues in 2023 came from manufacturing, up from 32.5% in 2022, indicating a shift towards end-part manufacturing [11][50] - The company expects pent-up demand to re-accelerate growth in system sales as macroeconomic conditions improve [10][45] Company Strategy and Development Direction - The company is focusing on advancing additive manufacturing applications and enhancing operational efficiencies to drive profitability [9][10] - The launch of the F3300 printer is expected to address pent-up demand and support scalable production [12][71] - The strategic review process is ongoing, with the Board evaluating avenues to maximize value [21] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about recovery in the macro environment, citing early signs of improvement in capital spending [45][46] - The company anticipates revenue growth in 2024 to range between $630 million to $645 million, with improved gross margins [33][34] - Management highlighted the importance of customer engagement and utilization of existing systems as indicators of future growth [41][66] Other Important Information - The company generated $7 million in operating cash flow in Q4, excluding one-time costs related to M&A activities [32] - The company ended Q4 with $162.6 million in cash and equivalents, down from $184.6 million at the end of Q3 [32] Q&A Session Summary Question: What are the prospects for consumables growth in 2024? - Management indicated that consumables revenue is expected to continue growing, with Covestro contributing approximately $4 million to $5 million per quarter [40][41] Question: Is the expected bounce back in system demand included in 2024 revenue guidance? - Management confirmed that the anticipated recovery is factored into the guidance, emphasizing the sensitivity of hardware sales to macroeconomic conditions [43][45] Question: What percentage of sales are going into production applications? - Management reported that 34% of sales were directed towards manufacturing applications, up from 32.5% the previous year, indicating a strategic focus on this area [50] Question: How does the company plan to achieve positive cash flow? - Management noted that recent quarters have shown positive operating cash flow when excluding one-time costs, and they expect this trend to continue in 2024 [52] Question: What is the growth rate in the dental market? - Management refrained from providing exact revenue figures but confirmed significant growth in the dental sector, focusing on non-discretionary restorative applications [54][56]

Company Performance - Stratasys reported quarterly earnings of $0.02 per share, missing the Zacks Consensus Estimate of $0.04 per share, and down from $0.07 per share a year ago, representing an earnings surprise of -50% [1] - The company posted revenues of $156.34 million for the quarter, missing the Zacks Consensus Estimate by 2.93%, and down from $159.26 million year-over-year [1] - Over the last four quarters, Stratasys has surpassed consensus EPS estimates two times and topped consensus revenue estimates three times [1] Future Outlook - The current consensus EPS estimate for the coming quarter is $0.07 on revenues of $157.16 million, and for the current fiscal year, it is $0.37 on revenues of $680.39 million [4] - The estimate revisions trend for Stratasys is mixed, resulting in a Zacks Rank 3 (Hold), indicating expected performance in line with the market in the near future [4] Industry Context - The Computer - Peripheral Equipment industry, to which Stratasys belongs, is currently in the bottom 30% of over 250 Zacks industries, which may negatively impact stock performance [5] - TransAct Technologies Incorporated, another company in the same industry, is expected to report a quarterly loss of $0.03 per share, reflecting a year-over-year change of -200% [5][6]

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]

EDEN PRAIRIE, Minn. & REHOVOT, Israel--(BUSINESS WIRE)--Stratasys Ltd. (NASDAQ: SSYS), a leader in polymer 3D printing solutions, today announced it is launching two new software packages, GrabCAD Streamline Pro™ and a new version of GrabCAD Print Pro™ for PolyJet™. These packages bring the power of Stratasys’ GrabCAD software to additional customers to help increase their efficiency and reduce costs through improved workflows. The first version of GrabCAD Print Pro for FDM and SAF has increased hardware ...

Stratasys (SSYS) has announced the acquisition of Arevo’s technology and intellectual property. Arevo, previously based in Silicon Valley, stopped operating in 2023.The acquisition of the IP estate includes several essential patents in carbon fiber printing, improving strength using localized laser melting and roller compaction, real-time monitoring during printing and hardware design. By integrating this technology into Stratasys FDM® print systems, the company expands the range of manufacturing applicatio ...

Core Insights - Stratasys Ltd. has acquired Arevo's technology portfolio, including its Intellectual Property (IP) estate, which enhances its capabilities in polymer 3D printing solutions [1][2] - The acquisition includes foundational patents in carbon fiber printing, localized laser melting, AI build monitoring, and hardware design, allowing Stratasys to expand its manufacturing applications [1] - This move aligns with Stratasys' strategy to invest in innovation, both organically and through acquisitions, to provide practical value to its customers [2] Company Overview - Stratasys is a leader in additive manufacturing, providing innovative 3D printing solutions across various industries such as aerospace, automotive, consumer products, and healthcare [3] - The company offers smart and connected 3D printers, polymer materials, and a software ecosystem, delivering competitive advantages throughout the product value chain [3] - Stratasys aims to transform product design, enhance manufacturing agility, and improve patient care through its advanced solutions [3]

Patient from the Oklahoma Dental Association Mission of Mercy event for people in need getting new Stratasys TrueDent 3D printed denture. Stratasys partnered with Oklahoma-based Express Labs to provide the TrueDent denture material. (Photo: Business Wire)Patient from the Oklahoma Dental Association Mission of Mercy event for people in need getting new Stratasys TrueDent 3D printed denture. Stratasys partnered with Oklahoma-based Express Labs to provide the TrueDent denture material. (Photo: Business Wire)Pa ...

EDEN PRAIRIE, Minn. & REHOVOT, Israel--(BUSINESS WIRE)--Three senior executives from Stratasys LTD (NASDAQ: SSYS) will speak in four sessions at the Additive Manufacturing Strategies conference, February 6-8 in New York City, the company announced today. The company is also a Diamond Sponsor of this annual in-person event that brings together additive manufacturing stakeholders from all over the world. During the three-day conference, Stratasys leaders will share information and insights based on their e ...

EDEN PRAIRIE, Minn. & REHOVOT, Israel--(BUSINESS WIRE)--Stratasys Ltd. (Nasdaq: SSYS), a leader in polymer 3D printing solutions, today announced that German service bureau PartsToGo has invested in another four stereolithography (SLA) printers. They selected three Neo800 printers and one Neo450 to complement their existing Neo450 and Neo800 to produce high-quality, accurate and repeatable parts for their customers’ industrial-level application needs. The investment brings PartsToGo’s total Neo fleet to six ...

3D printing company Stratasys (SSYS 13.04%) is now in play, and investors quickly got into the action on Tuesday. On news that a peer has made a preliminary offer at a generous premium, those folks piled into the stock and pushed its price 13% higher on the day. That was well above the 0.4% increase of the S&P 500 index across the trading session.Buyout offer receivedOn Sunday, Stratasys divulged in a press release that it received an unsolicited, preliminary buyout offer from specialty electronics company ...