Stratasys (SSYS) Q1 Earnings Beat Estimates, Revenues Fall Y/Y

Core Viewpoint - Stratasys reported a narrower loss in Q1 2024 compared to expectations, but revenues declined year over year, missing consensus estimates due to divestitures and unfavorable currency impacts [1][2]. Financial Performance - The company recorded a loss of 2 cents per share, better than the Zacks Consensus Estimate of a loss of 4 cents, and non-GAAP earnings were 2 cents per share in the same quarter last year [1]. - Revenues decreased by 3.5% year over year to $144.05 million, falling short of the consensus mark by 2.36% [1]. - Product revenues fell by 1.8% to $99.19 million, with System revenues down 18.7% to $32.9 million, while Consumables revenues increased by 9.6% to $66.3 million [2]. - Service revenues decreased by 7.3% to $44.9 million, although Customer Support revenues rose by 3.3% to $31.2 million [2]. - Non-GAAP gross profit decreased by 0.9% to $70.03 million, with a gross margin expansion of 130 basis points to 48.6% [2]. - Non-GAAP operating expenses increased by 2.9% to $71.2 million, leading to a non-GAAP operating loss of $1.2 million compared to a profit of $1.5 million in the prior year [2]. - Adjusted EBITDA fell by 41.4% to $4.1 million [2]. Balance Sheet & Cash Flow - At the end of Q4, Stratasys had cash and short-term deposits of $184.5 million, unchanged from the previous quarter [3]. - The company reported an operating cash flow utilization of $7.7 million, down from $18.1 million in the prior-year quarter [3]. 2024 Outlook - For 2024, Stratasys projects revenues between $630 million and $645 million, with non-GAAP earnings per share expected in the range of 12-19 cents [4]. - The company anticipates a gross margin between 49% and 49.5%, and a non-GAAP operating margin of 2.5-3.5% [4]. - Operating expenses are estimated to be between $292 million and $297 million, with adjusted EBITDA projected at $40-$45 million [4].