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SSYS Q2 Revenues Miss: Will FY24 Outlook Drag Shares Down?
SSYSStratasys(SSYS) ZACKS·2024-08-30 17:11

Financial Performance - Stratasys reported a loss of 4 cents per share in Q2 2024, in line with the Zacks Consensus Estimate, compared to non-GAAP earnings of 4 cents per share in the year-ago quarter [1] - Quarterly revenues declined 13.6% YoY to 138million,missingtheconsensusmarkby6.78138 million, missing the consensus mark by 6.78%, partially due to divestitures and unfavorable foreign currency exchange rates [1] - Non-GAAP gross profit fell 9.8% YoY to 67.7 million, while the non-GAAP gross margin expanded 50 bps to 49% [2] - Non-GAAP operating expenses decreased 2.2% YoY to 70.9million,resultinginanon−GAAPoperatinglossof70.9 million, resulting in a non-GAAP operating loss of 3.2 million, compared to a profit of 5millionintheyear−agoquarter[2]−AdjustedEBITDAplunged78.35 million in the year-ago quarter [2] - Adjusted EBITDA plunged 78.3% YoY to 2.3 million [2] Segment Performance - Product revenues declined 14.2% YoY to 93.6million,withSystemrevenuesplunging4093.6 million, with System revenues plunging 40% YoY to 29 million, while Consumables revenues increased 6.3% YoY to 64.6million[2]−Servicesrevenuesdeclined12.264.6 million [2] - Services revenues declined 12.2% YoY to 44.4 million, with Customer Support revenues advancing 3.8% YoY to 30.5 million [2] Strategic Developments - Stratasys solidified a partnership with AM Craft to support additive manufacturing of EASA-certified aircraft sustainment parts, opening new opportunities in the aviation sector [3] - The company launched new products, including SAF High-Def printing capabilities, H350 version 1.5, and SAF Polypropylene material, expanding manufacturing applications and use cases [3] - Stratasys software offerings, including GrabCAD Print Pro and GrabCAD Streamline Pro, showed strong demand, with Print Pro expanding to PolyJet users and Streamline Pro gaining traction [3] Balance Sheet & Cash Flow - Stratasys ended Q2 with cash and short-term deposits of 150.9 million, down from 161.1millionattheendofthepreviousquarter[4]−Thecompanyreportedanegativeoperatingcashflowof161.1 million at the end of the previous quarter [4] - The company reported a negative operating cash flow of 2.4 million, a significant decline from the positive operating cash flow of 7.3millioninthepreviousquarter[4]2024Outlook−Managementlowered2024revenueprojectionsto7.3 million in the previous quarter [4] 2024 Outlook - Management lowered 2024 revenue projections to 570-580million,downfromthepreviousforecastof580 million, down from the previous forecast of 630-645million[5][6]−Non−GAAPearningspersharearenowforecastedat1−5cents,comparedtothepreviousrangeof12−19cents[5][6]−Grossmarginsareexpectedtobebetween48.7645 million [5][6] - Non-GAAP earnings per share are now forecasted at 1-5 cents, compared to the previous range of 12-19 cents [5][6] - Gross margins are expected to be between 48.7% and 49%, down from the previous range of 49%-49.5% [5][6] - Non-GAAP operating margin is projected at 0.5%-1%, compared to the previous range of 2.5%-3.5% [5][6] - Operating expenses are estimated at 276-278million,downfromthepreviousrangeof278 million, down from the previous range of 292-297million[5][6]−AdjustedEBITDAisprojectedat297 million [5][6] - Adjusted EBITDA is projected at 24-27million,downfromthepreviousrangeof27 million, down from the previous range of 40-$45 million [5][6] Stock Performance - Stratasys' shares have plunged 51.5% year-to-date, underperforming the Zacks Computer & Technology sector's rise of 20.3% [6]