Stratasys and Ricoh co-sponsor clinical study comparing the efficacy of 3D printed models to traditional CT or MRI scanning for bone tumor excision planningEXTON, Pa. and EDEN PRAIRIE, Minn. and REHOVOT, Israel, June 26, 2024 /PRNewswire/ -- Ricoh USA, Inc. and Stratasys Ltd. (NASDAQ: SSYS) today announced the enrollment of the first patient in a groundbreaking clinical study aimed to evaluate the use of 3D printed models for orthopedic oncology. The study will assess the efficacy of patient-specific 3D pri ...

Stratasys (SSYS) has announced a strategic partnership with AM Craft to expand the demand for flight-certified 3D printed parts in the aviation industry. This collaboration involves a definitive commercial agreement and a strategic investment by Stratasys in AM Craft.The appeal of additive manufacturing as a supply chain solution is particularly strong due to the long sustainment life of aircraft and the challenges associated with forecasting and stocking replacement parts.Through this partnership, Stratasy ...

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 ...