Stratasys(US:SSYS)2020-02-26 19:13Financial Data and Key Metrics Changes - Total revenue in Q4 2019 was $160.2 million, a decrease from $177.1 million in Q4 2018, representing a 9.3% decline on a constant currency basis [11] - For the full year 2019, total revenue was $636.1 million, down from $663.2 million in 2018, a 3.1% decline on a constant currency basis [11] - GAAP net loss for Q4 2019 was $2.8 million, or $0.05 per diluted share, compared to a net income of $6.3 million, or $0.12 per diluted share in Q4 2018 [12] - Non-GAAP net income for Q4 2019 was $10 million, or $0.18 per diluted share, compared to $11.3 million, or $0.21 per diluted share in Q4 2018 [12] Business Line Data and Key Metrics Changes - Product revenue in Q4 2019 was $109 million, a decrease of 12.5% compared to Q4 2018 [13] - Service revenue in Q4 2019 was $51.2 million, a decrease of 2.6% compared to Q4 2018 [15] - Consumables revenue for Q4 2019 decreased by 2.9% compared to the same period last year [13] Market Data and Key Metrics Changes - The Americas region saw mid-single digit year-over-year growth for full year 2019, while Europe and Asia experienced macro weakness [11] - System revenue for Q4 2019 decreased by 20.6% compared to Q4 2018, primarily due to macroeconomic weakness in Europe and Asia [14] Company Strategy and Development Direction - The company plans to introduce a new phase of growth with a series of new products focused on manufacturing and design prototyping solutions [7] - There is an emphasis on increasing go-to-market spending to support new product launches in the second half of 2020 [7][19] - The company aims to expand its leadership in industrial manufacturing applications, particularly in automotive, aerospace, and healthcare [8] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism regarding the business outlook, citing a strong foundation for growth and the potential for significant value creation [8] - The company acknowledged ongoing macroeconomic challenges, particularly related to the coronavirus, which may impact operations and guidance for 2020 [20][40] Other Important Information - The company ended Q4 2019 with $321.8 million in cash, down from $347.1 million at the end of Q3 2019 [17] - Full year 2020 revenue guidance is set between $620 million to $680 million, with GAAP net loss projected between $30 million to $18 million [19] Q&A Session Summary Question: Can you talk about how your past experience will influence your role at Stratasys? - The new CEO highlighted his extensive experience in strategy and commercial aspects, emphasizing a focus on growth and leveraging the company's strong product portfolio [24] Question: What gives confidence in the recovery of product revenues? - Management indicated that new product launches in the second half of 2020 are expected to significantly impact revenue, with Q4 anticipated to be the strongest quarter [26][28] Question: How will the coronavirus impact your business? - Management noted that the coronavirus could significantly affect the automotive sector and supply chain, leading to a cautious outlook for Q1 2020 [40] Question: What are the key drivers of growth in the coming years? - The CEO emphasized the importance of manufacturing capabilities and the potential for new technologies to drive growth, particularly in the automotive sector [44] Question: Can you provide an update on your progress in the metal arena? - The company is deploying early machines for its Layered Powder Metallurgy solution, receiving positive feedback from initial deployments [38]