Stratasys(SSYS) - 2024 Q1 - Quarterly Report

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]