Stratasys(US:SSYS)2023-05-15 16:00Financial Performance - Total revenues for Q1 2023 were $149.4 million, a decrease of 8.6% compared to $163.4 million in Q1 2022[7] - Product revenues were $101.0 million, down 10.2% from $113.1 million year-over-year, while service revenues decreased by 4.0% to $48.4 million[7] - Gross profit for the quarter was $65.4 million, resulting in a gross margin of 43.8%, compared to $69.7 million and 42.6% in the same period last year[7] - Operating loss for Q1 2023 was $16.8 million, an improvement from a loss of $19.6 million in Q1 2022[7] - Net loss for the quarter was $22.2 million, compared to a net loss of $20.9 million in the prior year[7] - Stratasys reported a net loss of $22,224,000 for the three months ended March 31, 2023, compared to a net loss of $20,948,000 for the same period in 2022, indicating a year-over-year increase in losses of approximately 6.1%[14] Cash and Assets - Cash and cash equivalents increased to $209.1 million from $150.5 million at the end of 2022[5] - Total assets decreased to $1.24 billion from $1.26 billion at the end of 2022[5] - Total liabilities decreased to $292.6 million from $300.4 million at the end of 2022[5] - The accumulated deficit increased to $2.10 billion from $2.08 billion at the end of 2022[9] - Cash, cash equivalents, and restricted cash at the end of the period totaled $209,369,000, down from $293,761,000 at the end of Q1 2022, representing a decrease of approximately 28.7%[15] Operating Activities - The company experienced a net cash used in operating activities of $17,926,000 for Q1 2023, compared to $16,063,000 in Q1 2022, reflecting a 11.6% increase in cash outflow[14] - The company recorded a net gain of $39.1 million from the deconsolidation of MakerBot, which was merged with Ultimaker, resulting in an equity method investment of $105.6 million in the new entity[20] - Stratasys reported a significant increase in deferred revenues, which rose to $3,387,000 in Q1 2023 from $2,522,000 in Q1 2022, marking a year-over-year increase of approximately 34.3%[14] Investments and Expenses - The company invested $2.4 million in non-marketable equity securities and convertible notes during Q1 2023, compared to $16.7 million in the same period of 2022, indicating a substantial reduction in investment activity[25] - The company’s depreciation and amortization expenses for Q1 2023 were $11,680,000, down from $15,290,000 in Q1 2022, representing a decrease of approximately 23.5%[14] - Amortization expenses for intangible assets were approximately $6.2 million for the three-month period ended March 31, 2023, down from $9.2 million in the same period of 2022[41] - The total stock-based compensation expenses for the three months ended March 31, 2023, amounted to $8.241 million, compared to $8.533 million for the same period in 2022[61] Inventory and Goodwill - Inventories increased to $201.99 million as of March 31, 2023, compared to $194.05 million as of December 31, 2022[36] - Goodwill increased to $69.74 million as of March 31, 2023, from $64.95 million at the beginning of the year, due to acquisitions[38] Foreign Exchange and Hedging - As of March 31, 2023, the notional amounts of outstanding foreign exchange forward contracts not designated as hedging instruments were $62.7 million, with a loss of $0.4 million recognized for the three-month period ended March 31, 2023[57] - The company had foreign exchange forward contracts designated as cash flow hedges for converting $48.9 million into NIS, aimed at reducing exposure to payroll costs and other operating expenses[58] - The fair value of foreign exchange contracts, designated as hedging instruments, was $(2,610) million as of March 31, 2023, compared to $(1,640) million as of December 31, 2022[56] Tax and Liabilities - The effective tax rate for the company was impacted by geographic earnings mix, resulting in a tax expense of $3.8 million for the three-month period ended March 31, 2023[47] - The company’s contingent consideration liabilities were recorded at fair value, totaling $38.606 million as of March 31, 2023[52] - The company’s total liabilities related to foreign exchange forward contracts not designated as hedging instruments were $(100) million as of March 31, 2023[56] Stock Options - The company’s stock options outstanding as of March 31, 2023, were 1,615,566, with a weighted average exercise price of $27.62[62] - As of March 31, 2023, the unrecognized compensation cost related to unvested, equity-classified stock options was $1.1 million, expected to be recognized over a weighted-average period of 1.66 years[62]