FARO Announces Fourth Quarter and Full Year 2024 Financial Results

Core Insights - FARO Technologies, Inc. reported strong financial results for Q4 and full year 2024, achieving a decade-high adjusted EBITDA margin of 18% and positive operating cash flow for five consecutive quarters [2][5][6] - The company experienced a year-over-year increase in operating cash flow of $29.6 million, marking its first double-digit adjusted EBITDA margin since 2018 [2][5] - FARO's multi-phase strategy focuses on operational excellence, organic growth, and strategic investments, positioning the company for sustained market leadership and long-term value creation [2] Financial Summary - Fourth Quarter 2024 - Total sales for Q4 2024 were $93.5 million, a decrease of 5% year-over-year [6] - Gross margin improved to 56.7%, up from 50.9% in the prior year period, with a non-GAAP gross margin of 57.4% compared to 51.3% [6] - Operating expenses decreased to $48.4 million from $48.9 million in the prior year period, with non-GAAP operating expenses at $39.9 million, down from $41.3 million [6] - The company reported a net loss of $1.0 million, or $(0.05) per share, compared to a net income of $1.6 million, or $0.08 per share in the prior year [6] - Non-GAAP net income for Q4 was $9.5 million, or $0.50 per share, compared to $5.8 million, or $0.31 per share in the prior year [6] Financial Summary - Full Year 2024 - Total sales for the full year 2024 were $342.4 million, down 5% compared to the prior year [6] - The net loss for the full year was $9.1 million, or $(0.47) per share, an improvement from a net loss of $56.6 million, or $(2.99) per share in the prior year [6] - Non-GAAP net income for the full year 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 [6] Outlook for First Quarter 2025 - FARO expects Q1 2025 revenue in the range of $77 to $85 million, with a gross margin between 54.5% and 56.0% [5][6] - The company anticipates operating expenses between $45.0 million and $47.0 million, with non-GAAP operating expenses in the range of $38.5 million to $40.5 million [5][6] - The projected net loss per share is expected to be between $(0.36) and $(0.16), while non-GAAP earnings per share are anticipated to be in the range of $0.10 to $0.30 [5][6] Key Sales Measures - For Q4 2024, total sales to external customers were $93.5 million, with regional breakdowns showing $40.6 million from the Americas, $32.9 million from EMEA, and $20.1 million from APAC [35] - For the full year 2024, total sales were $342.4 million, with $158.3 million from the Americas, $108.4 million from EMEA, and $75.7 million from APAC [35]