FARO Technologies(US:FARO)2025-02-24 21:14Financial Performance - Q4 2024 revenue was $93.5 million, down 5% year-over-year, but at the upper end of guidance range [4] - Q4 2024 net loss was $1.0 million, or $(0.05) per share, compared to net income of $1.6 million, or $0.08 per share in the prior year period [5] - Full year 2024 total sales were $342.4 million, down 5% compared to the prior year period [11] - Full year 2024 net loss was $9.1 million, or $(0.47) per share, compared to a net loss of $56.6 million, or $(2.99) per share in the prior year [11] - The company reported a net loss of $9.1 million for the twelve months ended December 31, 2024, compared to a net loss of $56.6 million in 2023, indicating a positive trend in financial recovery [31] Adjusted Metrics - Adjusted EBITDA for Q4 2024 was $16.7 million, or 17.9% of total sales, compared to $11.9 million, or 12.1% of total sales in the prior year period [10] - Non-GAAP net income for the full year 2024 was $18.5 million, or $0.97 per share, compared to a non-GAAP net loss of $9.9 million, or $(0.52) per share in the prior year [11] - Adjusted EBITDA for the twelve months ended December 31, 2024, was $39.6 million, significantly up from $2.7 million in 2023, reflecting a substantial improvement in operational performance [31] - The company reported a non-GAAP income from operations of $28.2 million for 2024, a significant recovery from a loss of $8.0 million in 2023 [29] Cash and Investments - Cash, cash equivalents, and short-term investments increased to $98.7 million as of December 31, 2024, compared to $88.9 million as of September 30, 2024 [10] - Cash and cash equivalents rose to $88.7 million at the end of 2024, compared to $76.8 million at the end of 2023, an increase of approximately 15.5% [27] Profitability Metrics - The company achieved a decade-high adjusted EBITDA margin of 18% in Q4 2024, marking the first double-digit adjusted EBITDA margin since 2018 [2] - Gross margin improved to 54.7% in 2024 from 46.0% in 2023, reflecting a positive trend in profitability [29] - The company’s GAAP gross margin for the fiscal quarter ending March 31, 2025, is projected to be between 54.5% and 56.0%, with a Non-GAAP gross margin expected between 55.0% and 56.5% [37] Expenses and Liabilities - Operating expenses for Q4 2024 were $48.4 million, a slight decrease from $48.9 million in the prior year period [5] - Total liabilities decreased from $236.1 million in 2023 to $233.4 million in 2024, a reduction of about 1.1% [25] - Research and development expenses for 2024 were $40.1 million, slightly decreased from $41.8 million in 2023 [29] Sales and Revenue Composition - Total recurring revenue for the twelve months ended December 31, 2024, was $68.4 million, representing 20.0% of total sales, an increase from 18.8% in 2023 [33] - Hardware sales for the three months ended December 31, 2024, were $62.3 million, accounting for 66.6% of total sales, compared to 67.4% in the same period of 2023 [33] - The company’s total sales in constant currency for the twelve months ended December 31, 2024, were $349.0 million, a decrease from $361.1 million in 2023 [33] Restructuring and Future Outlook - The company has completed substantially all planned activities under its Restructuring and Integration Plans, with a new restructuring plan approved on November 1, 2024, to address underperforming operations [30] - The company expects Q1 2025 revenue in the range of $77 to $85 million, with a gross margin between 54.5% and 56.0% [11] - The company’s restructuring and other costs for the twelve months ended December 31, 2024, amounted to $8.9 million, down from $19.0 million in 2023, reflecting the completion of planned restructuring activities [31] Shareholder Returns - The company repurchased $10.0 million worth of common stock during the year, indicating a commitment to returning value to shareholders [27]